Pakistan Needs to Fulfil 39 Conditions to Secure 2nd IMF Tranche of $1.1 Billion

The government has started mandatory asset disclosures by civil servants and their families to meet conditions for the release of the second $1.1 billion tranche under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF). The approval is contingent on adherence to 39 conditions like eliminating tax amnesties and exemptions, issuing a governance and corruption assessment report, and achieving key fiscal and monetary benchmarks. Civil servants are required to disclose their assets by February 2025. The lender also demanded maintaining foreign exchange reserves to cover three months of imports, keeping open market/interbank exchange rate gap to within 1.25 percent, and increasing central bank reserves to $8.65 billion by June 2025. Public sector liabilities must be capped at Rs. 5.6 trillion, power sector arrears limited to Rs. 417 billion, and tax refund backlogs kept below Rs. 24 billion. The government is also prohibited from granting funds outside the budget. Meanwhile, Finance Minister Muhammad Aurangzeb has stated once again that the IMF program is proceeding smoothly, with no disruptions, as the Government of Pakistan remains fully committed to meeting all the conditionalities and ensuring the successful completion of the 37-month program in close coordination with the IMF staff. The Ministry of Finance reaffirmed that the Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has consistently emphasized upon the government’s continued commitment to macroeconomic reforms. In a recent briefing to the National Assembly Standing Committee on Finance, the Minister reiterated that adhering to the IMF program is critical for achieving lasting macroeconomic stability. Any speculation regarding “hiccups” in the program’s implementation is based on one’s subjective interpretations and lacks credible evidence. The government remains focused on maintaining economic stability and fulfilling all obligations under the IMF program with diligence and transparency, aiming to lay the foundation for stronger, sustainable, and inclusive growth, he added.