Sun May 18 13:34:20 UTC 2025: **Headline: IMF Tightens Grip on Pakistan with New Bailout Conditions, Cites India Tensions**

Islamabad – The International Monetary Fund (IMF) has placed Pakistan under increased financial scrutiny, imposing 11 new conditions for the release of the next tranche of its crucial bailout program. A media report released Sunday, May 18, 2025, reveals the stringent measures, bringing the total number of conditions to 50.

The IMF’s demands include parliamentary approval of a new ₹17.6 trillion budget, an increase in the debt servicing surcharge on electricity bills, and a controversial lifting of import restrictions on used cars older than three years. Further, the IMF has included several stipulations relating to energy sector pricing and subsidy elimination. The IMF also wants all incentives in relation to Special Technology Zones and other industrial parks and zones phased out by 2035

Notably, the IMF report also expressed concern over escalating tensions between Pakistan and India, warning that any further deterioration in relations could severely jeopardize Pakistan’s fiscal stability, external balance, and reform efforts. The report referenced recent military activity between the two nations, including India’s “Operation Sindoor” strikes following a deadly terror attack, and subsequent cross-border exchanges.

The IMF report highlights the defense budget for the next fiscal year at ₹2.414 trillion, which is higher by ₹252 billion or 12%.

The new conditions underscore the IMF’s commitment to ensuring Pakistan adheres to the agreed-upon reform targets by June 2025.

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