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Pakistan Says Latest IMF Steps Continue Agreed Reform Plan

Officials say the benchmarks reflect a government-led sequence rather than fresh demands.

Overview

  • The MEFP finalized after the second review supplements the first review document as part of a phased medium‑term program.
  • Governance actions advance earlier commitments, including publishing civil servants’ asset declarations, strengthening NAB, and granting provinces access to financial intelligence under AML/CFT reforms.
  • Measures to channel flows through formal routes are credited with a 26% rise in remittances in FY2025, with a further 9.3% increase projected for FY2026.
  • New structural benchmarks include a local‑currency bond‑market study first recommended in May 2025 and a government‑led sugar market deregulation effort.
  • Fiscal and energy steps include FBR transformation and a medium‑term tax strategy, phased DISCO privatization with HESCO and SEPCO preconditions and PSO agreements, and pre‑agreed contingencies such as a 5% FED on fertilizer and pesticides.