IMF Cracks Down on Terror-Funding Pak: 11 New Conditions Imposed Before Next Relief Installment

International News: The International Monetary Fund (IMF) has now tightened its financial aid policy after releasing the fresh relief amount of $ 1 billion to Pakistan. The institution fears that this amount does not drown or does not get into the nutrition of terrorism. Due to this fear, IMF has implemented 11 new conditions before the next installment of its relief program for Pakistan.

The IMF has clarified that increasing stress between India and Pakistan can pose serious risk to its economic program. The institution has decided to keep strict monitoring on Pakistan's policies and budget priorities.

11 strict conditions of IMF:

• It is mandatory to pass a new budget of Rs 17,600 billion from Parliament.
• Electricity rates will have to be increased further.
• The ban on import of cars older than three years will have to be lifted.
• Four federal units will have to implement the new Agricultural Income Tax Act, including the taxpayer's identity, return processing and compliance improvement.
• There will be a comprehensive communication campaign in the country to create an atmosphere in favor of reforms.
• Practical display of operational reforms will be necessary as per the recommendations of the IMF.
• A financial strategy after 2027 will have to be made public.
• Four additional improvements will be made in the energy sector, including tariff determination, improvement in distribution system, and financial transparency.

India objected, Rajnath Singh reacted strongly

India has reacted strongly after the announcement of this loan. Defense Minister Rajnath Singh said, "Giving any kind of financial assistance to Pakistan is like funding terrorism." This response came to light when Pakistan government minister Tanveer Hussain spoke about the use of government funds for reconstruction in Muridke. It is noteworthy that Murid is the same area where terrorists were targeted under India's Operation 'Sindoor'.

Pakistan groan due to inflation, still increasing defense spending

Pakistan has once again put up defense spending in its priorities. The upcoming defense budget has been fixed at Rs 2,414 billion, which is 12 percent more than the previous year. At the same time, earlier this month, Shahbaz Sharif government has approved Rs 2,500 billion (18 percent increase).

IMF is concerned about this military increase, especially at a time when Pakistan is not showing expected pace towards basic economic reforms and transparency.

Global economic cooperation can no longer run with terror & military expansion

The terms of the IMF are like a warning for Pakistan that global economic cooperation can no longer run with terror and military expansion. Amidst India's objections and increasing stresses, it will be important to see how Pakistan implements these conditions and shows how serious it to get the next installment of IMF.