IMF Slaps 11 Conditions on Pakistan for Funds

Terms include parliamentary approval of a new Rs17.6 trillion budget, hike in debt servicing surcharge on power bills, lifting curbs on import of more than 3-year-old used cars

- Press Trust of India

ISLAMABAD: The International Monetary Fund (IMF) has slapped 11 new conditions on Pakistan for the release of the next tranche of its bailout programme and warned that tensions with India could heighten risks to the scheme's fiscal, external, and reform goals, according to a media report on Sunday.

The new conditions imposed on Pakistan include the parliamentary approval of a new Rs17.6 trillion budget, an increase in the debt servicing surcharge on electricity bills and lifting restrictions on import of more than three-year-old used cars.

The Express Tribune newspaper said the Staff Level report, which the IMF released on Saturday, also said that "rising tensions between India and Pakistan, if sustained or deteriorate further, could heighten risks to the fiscal, external and reform goals of the programme".

The report further stated that tensions between Pakistan and India have risen significantly over the past two weeks, but so far, the market reaction has been modest, with the stock market retaining most of its recent gains and spreads widening moderately.

The IMF report has shown the defence budget for the next fiscal year at Rs2.414 trillion, which is higher by Rs252 billion or 12%.