More shame for Pakistan as it can't make its budget too, IMF takes charge, imposes 11 new conditions on..., issues strong warning against...
After a long struggle, Pakistan is finally set to receive a USD 1 billion loan from the International Monetary Fund (IMF). For quite some time now, Pakistan has been depending heavily on loans from institutions like the World Bank and IMF, as well as countries like China. It has also received cheap oil and financial support from Saudi Arabia on several occasions.
But this constant borrowing has come at a cost as Pakistan's financial independence has gradually weakened. The situation is now such that the country can't even finalize its national budget on its own. On June 2, Pakistan plans to present its national budget. However, before doing so, it must consult the IMF.
In fact, an IMF team has already arrived in Islamabad. Pakistani finance ministry officials will now discuss the budget details with this team, and only after those talks will the final proposals be decided. This shows how much Pakistan's economic decisions now rely on external approval.
As par various reports, the IMF will play a key role in deciding how much money Pakistan can allocate for infrastructure in its upcoming budget. It will also help determine how much should go towards paying interest on existing loans and how much should be set aside for economic reforms. This isn't new as for the past several years, the IMF has had a strong influence on how Pakistan prepares its budget.
The IMF insists that Pakistan's budget must focus on maintaining economic stability. It also wants the country to set aside a financial buffer to deal with unexpected situations. IMF's 11 new conditions on Pakistan
Before approving the latest loan installment, the IMF has placed 11 new conditions on Pakistan, bringing the total number of conditions imposed so far to 50. These range from spending cuts to structural reforms, showing how tightly Pakistan's economy is now tied to IMF oversight, according to local Pakistani news portal Express Tribune's report on 18 May 2025.
According to IMF conditions, Pakistan's total national budget has been capped at 17.6 trillion Pakistani rupees. Out of this, the government is allowed to spend only 1.07 trillion rupees on development projects.
The IMF has also pushed for strengthening the tax system, including a proposal to tax agricultural income. Additionally, Pakistan's government has been asked to publicly release a Governance Action Plan, ensuring transparency and allowing citizens to monitor the reforms being implemented.
The IMF has also restricted subsidies on electricity bills. This means the Pakistani government can no longer offer excessive discounts to its citizens on power rates, and must limit any relief beyond a certain point.
The government has also been directed to make and publish a plan to outline the post-2027 financial sector strategy to highlight the regulatory environment from 2028 onwards, according to the local news portal's report.
The IMF also directed the government to issue a notification on semi-annual gas tariffs to maintain the energy tariffs at cost recovery levels by February 15, 2026.
As part of the condition, Pakistan also has to submit a bill for listing all quantitative restrictions on used motor vehicle imports, which are less than five years old by end of July 2025.
According to the news portal's report, vehicles up to three years old can currently be imported into the nation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
33 minutes ago
- Hans India
New India can go to any extent to uproot terror: Rajnath
New Delhi: Decisive action has replaced dossiers and the new India can go to any extent to uproot terrorism, Defence Minister Rajnath Singh said on Monday while stating that Operation Sindoor was on pause as the armed forces had achieved the desired objectives. Initiating the special discussion on "India's strong, successful and decisive Operation Sindoor in response to the terror attack in Pahalgam" in the Lok Sabha, Singh said the military action against Pakistan had sent a clear message to supporters of terrorism that India was committed to defend its motherland. Just as the debate started in the Lok Sabha, security forces in Jammu and Kashmir reported that three terrorists have been gunned down after a massive gunfight. "Today, dossiers have been replaced by decisive action. Today's India thinks differently and acts differently. We believe that if the adversary uses terrorism as part of strategy and does not understand the language of peace, then standing firm and being decisive is the only option," Singh said. Rejecting US President Donald Trump's claims of mediating a ceasefire between India and Pakistan, the minister added, 'Operation Sindoor was paused as the armed forces had achieved the desired politico-military objectives and there was no pressure to end the conflict with Pakistan.' If Pakistan indulges in fresh misadventure, it will resume again, he added. Singh asserted that India now believes in taking decisive action as peace overtures have not yielded desirable results. The Defence Minister also made light of the opposition attacks against the government on the loss of military assets in the four-day war and urged political rivals to ask the number of Pakistani aircraft downed by India. "It is the Opposition's job to ask questions of the government. Our Opposition members kept asking how many of our aircraft were shot down, but they never asked how many Pakistani planes our forces had shot down," Singh said.
Hans India
33 minutes ago
- Hans India
How many Indian jets were downed, asks Cong
New Delhi: The Congress on Monday said Union Home Minister Amit Shah must take responsibility for the "security lapses" that allowed the Pahalgam terror attack, while asking the Centre to clarify how many Indian jets were downed during Operation Sindoor and "before whom did Prime Minister Narendra Modi surrender" to halt the military action against Pakistan. Participating in a special discussion in the Lok Sabha on "India's strong, successful and decisive Operation Sindoor in response to the terror attack in Pahalgam", Congress's deputy leader in the House Gaurav Gogoi said according to the government, its intention was not to occupy territory. He asked the government why was it not so as "if not today, then when will we take Pakistan-occupied Kashmir back"? Gogoi also slammed the government over US President Donald Trump's claim, made "26 times", that he used trade to bring about a ceasefire between India and Pakistan. The Congress leader said Prime Minister Narendra Modi has been saying since the Uri and Pulwama attacks that "humne ghar mein ghus ke mara", "we destroyed terror infrastructure" and is making the same remarks even now. "They are still saying that Operation Sindoor is incomplete and Pakistan can do this again. Then how is this a success? They themselves are saying that our intention was not of war. Why was it not so? They say it was not to take territory. Why was it not so? When will we take Pakistan-occupied Kashmir back? If not today, then when?... The most horrendous terror attacks have happened under your government," Gogoi said. He said the Opposition wants to know from Modi that if Pakistan was ready to kneel before India, "why did you stop and before whom did you surrender"? "Trump has made the claim 26 times that he used the threat of trade to bring a ceasefire between India and Pakistan. He says five to six jets have been downed. One jet is of crores and crores (of rupees). That is why we want to know from the defence minister, the country has the courage to listen to the truth, he must answer as to how many fighter jets were downed," the Congress leader said. "This information, this truth, is not just for Indian citizens, it is important for soldiers, they are also being lied to," he added. Gogoi said there are just "35 Rafale fighter jets in the country" and if some have been downed, "it is a big loss". He made the remarks while referring to a statement of Chief of Defence Staff General Anil Chauhan, who said in an interview that India rectified its tactics and hit deep inside Pakistani territory after suffering losses during Operation Sindoor.
Hans India
33 minutes ago
- Hans India
Pahalgam mastermind among 3 killed in J&K encounter
Srinagar: As Defence Minister Rajnath Singh began the Operation Sindoor debate in Parliament, security forces scored a massive win on Monday by gunning down three Pakistani terrorists in an encounter near Srinagar, two of them involved in the Pahalgam attack in which 26 innocents were murdered in cold blood. Suleiman Shah, a Lashkar-e-Taiba terrorist, was identified as the mastermind of the April 22 terror attack that shook the nation. Security sources have confirmed that he was among the terrorists killed in the encounter in the morning. Monday's operation, named Operation Mahadev, neutralised two other terrorists: Abu Hamza and Yasir. Yasir, too, is believed to be among the Pahalgam killers. Security forces from the Army, CRPF and Jammu and Kashmir Police were part of the joint operation. Suleiman served in the Pakistan Army and was also known as Hashim Moosa. In the aftermath of the terror attack at Pahalgam's Baisaran Valley, the Jammu and Kashmir Police had announced a Rs 20 lakh reward on anyone providing information about Suleiman. All the terrorists, it is learnt, were "high-value" targets. According to reports, the security forces acted on an intelligence input and launched the operation in the Mulnar area of Harwan. Reinforcements have been rushed to the area and a combing exercise is on. "It is a prolonged operation and is still continuing in which J&K police, paramilitary and army have an exchange of fire (with terrorists) in higher reaches. It is an ongoing operation, and we will share details with you at an opportune time,' the police said.
