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India Tensions May Derail Bailout Goals: IMF Warns Pak

Business Standard

|

May 19, 2025

Global lender in its Staff Level report lays out 11 new conditions, taking total to 50

- PRESS TRUST OF INDIA

The International Monetary Fund (IMF) has slapped 11 new conditions on Pakistan, taking the total to 50, 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, The Express Tribune reported on Sunday.

The new conditions include the parliamentary approval of a new ₹17.6 trillion budget, increase in the debt servicing surcharge on electricity bills, and lifting curbs on import of over three-year-old used cars.

IMF's Staff Level report 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".

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