ISLAMABAD: Pakistan and the International Monetary Fund have finalised 11 structural reform targets for the next fiscal year, aimed at strengthening economic stability, improving governance, and supporting long-term growth.
The Pakistan IMF reform targets for FY2026-27 cover fiscal policy, tax administration, social protection, energy pricing, and trade reforms. Officials say the measures are designed to reduce the fiscal deficit, enhance transparency, and unlock external financing.
The federal budget for 2026-27 will be prepared in line with IMF programme conditions before approval by parliament. In tax reforms, the Federal Board of Revenue will upgrade its audit system to align with international standards.
Governance and institutional reforms
Authorities plan to revise public procurement rules to ensure open competition by removing preferential treatment for state-owned enterprises. Reforms are also expected in accountability laws to strengthen transparency and merit-based enforcement.
Measures to enhance anti-money laundering and counter-terror financing frameworks are also included in the reform agenda.
Social and monetary policy changes
Under social protection, payments through the Benazir Income Support Programme will be adjusted regularly to reflect inflation, aiming to protect low-income households.
The State Bank of Pakistan will prepare a roadmap for gradual exchange rate liberalisation to support investment and economic activity.
Energy and investment reforms
The agreement outlines a fixed schedule for energy price adjustments, with gas tariffs to be revised twice during the fiscal year and electricity tariffs to be updated annually from January 2027.
To improve the investment climate, the government plans to phase out financial incentives for Special Economic Zones and introduce a cost-based incentive structure, with a broader framework targeting full phase-out by 2035.
A unified regulatory registry will also be introduced to improve transparency and reduce uncertainty for businesses.
Funding outlook
Officials say successful implementation of the reforms is key to economic stabilisation and investor confidence. Following IMF Executive Board approval, Pakistan is expected to receive about $1.2 billion in early May.
Also read: IMF approves $1.2 billion tranche for Pakistan, program remains on track
Today's E-Paper