Pakistan is preparing around 174 legal amendments sought under its ongoing International Monetary Fund (IMF)-supported reform programmes, with the proposed changes expected to be placed before Parliament for consideration.
Finance Secretary Imdadullah Bosal informed the National Assembly Standing Committee on Finance and Revenue that the proposed amendments cover a wide range of economic and governance areas.
These include taxation, energy, governance, state-owned enterprises, subsidies, remittances, the Sovereign Wealth Fund and sugar-sector policy, among other areas.
Key Takeaways
- Proposed amendments: Around 174
- Linked to: Pakistan’s ongoing IMF-supported programmes
- Main programme: $7 billion Extended Fund Facility (EFF)
- Other programme: Resilience and Sustainability Facility (RSF)
- Approval: Proposed legislation will go through Parliament
- Key areas: Taxation, energy, governance, SOEs, subsidies and remittances
- Other areas: Sovereign Wealth Fund and sugar-sector policy
- Fourth EFF review: Scheduled for September 2026
- Third RSF review: Also part of the current review cycle
174 Amendments Cover Wide Range of Reforms
The proposed legislative changes represent a broad reform agenda rather than a single piece of legislation.
According to the briefing given to the parliamentary committee, the amendments are aimed at addressing issues involving financial-sector governance, state-owned enterprises, foreign remittances, taxation, energy and other areas of economic policy.
The proposals also include areas such as the Sovereign Wealth Fund and sugar policy, showing how the IMF-linked reform agenda extends into several parts of Pakistan’s economic framework.
Parliament Will Decide on Proposed Legislation
Finance Secretary Imdadullah Bosal emphasized that the approval of legislation remains the prerogative of Parliament.
This means that while the amendments are part of Pakistan’s commitments under its IMF-supported programmes, proposed legal changes still have to go through the country’s legislative process.
The government is preparing the necessary legislation for presentation before Parliament, where the proposals will be considered under the applicable parliamentary procedure.
Pakistan Has Already Implemented Several IMF-Linked Measures
The government has already introduced a number of measures connected with its IMF reform commitments.
These include the withdrawal of certain tax concessions and restrictions related to supplementary grants, according to the briefing to the parliamentary committee.
Pakistan has also passed several economic and fiscal laws during 2026. The National Assembly’s records, for example, list amendments involving the Federal Board of Revenue, Fiscal Responsibility and Debt Limitation, Special Economic Zones and Export-Import Bank of Pakistan among legislation passed during the year.
However, implementation challenges remain in areas including the energy sector and circular debt, as well as meeting public spending-related targets.
Energy Sector Remains a Key Challenge
Energy-sector reforms remain an important part of Pakistan’s IMF programme.
The IMF has identified restoring the viability of Pakistan’s energy sector as one of the key structural priorities under the EFF. The programme also includes reforms aimed at improving public finances, strengthening competition and reforming state-owned enterprises.
Circular debt continues to be an important issue because accumulated liabilities in the power and gas sectors can place pressure on public finances and complicate efforts to improve the financial health of the energy system.
The proposed legal amendments are therefore part of a wider reform process that includes both legislation and implementation of economic measures.
IMF Fourth Review Comes Into Focus
The developments come as Pakistan prepares for the fourth review of its $7 billion Extended Fund Facility.
The IMF’s programme schedule lists the fourth EFF review for September 2026, with the review linked to performance through the end of June 2026.
Pakistan is also undergoing review under the Resilience and Sustainability Facility (RSF), which supports reforms related to climate resilience and economic vulnerabilities.
The IMF Executive Board completed Pakistan’s third EFF review and second RSF review in May 2026, allowing Pakistan access to approximately $1.1 billion under the EFF and $220 million under the RSF.
Reform Agenda Includes Tax, SOEs and Governance
The IMF-supported reform programme extends beyond taxation and fiscal targets.
The IMF has highlighted reforms involving state-owned enterprises, public finances, competition, productivity, energy-sector viability and public-service delivery.
The 174 proposed amendments therefore form part of a broader effort to translate programme commitments into changes to Pakistan’s laws and institutional framework.
For businesses and investors, changes to taxation, governance, SOEs and energy policy can influence the regulatory and operating environment.
Why This Matters
The proposed 174 amendments could affect several important parts of Pakistan’s economic system.
For taxpayers and businesses, changes to tax laws and concessions could alter compliance requirements and the fiscal framework.
For the energy sector, reforms are linked to efforts to address financial pressures and improve sector viability.
For state-owned enterprises, proposed changes could support broader restructuring and governance reforms.
For Parliament, the proposals will require legislative consideration rather than automatic implementation.
The scale of the proposed changes also highlights how broad the reform agenda has become under Pakistan’s IMF-supported programmes.
What Happens Next?
The government is expected to prepare and present the relevant legislation before Parliament.
The next major milestone is the IMF’s fourth EFF review, scheduled for September 2026, alongside the relevant RSF review.
The outcome will depend not only on the passage of legislation but also on how effectively the agreed reforms are implemented, particularly in areas such as taxation, energy, public finances and state-owned enterprises.
FAQs
How many legal amendments has the IMF sought from Pakistan?
The government says the IMF has sought around 174 amendments to various laws under Pakistan’s ongoing IMF-supported programmes.
Will Parliament approve the 174 amendments automatically?
No. Finance Secretary Imdadullah Bosal said approval of the proposed legislation remains the prerogative of Parliament.
What areas do the proposed amendments cover?
The amendments cover areas including taxation, governance, energy, state-owned enterprises, subsidies, remittances, the Sovereign Wealth Fund and sugar-sector policy.
Are the amendments part of the $7 billion IMF programme?
They are linked to Pakistan’s two ongoing IMF-supported programmes, including the $7 billion Extended Fund Facility and the Resilience and Sustainability Facility.
When is Pakistan’s fourth IMF review scheduled?
The IMF’s programme schedule places the fourth EFF review in September 2026, based on performance through the end of June 2026.
What other IMF-linked measures has Pakistan already implemented?
The government has implemented measures including the withdrawal of certain tax concessions and restrictions on supplementary grants, while several fiscal and institutional amendments have also been enacted during 2026.
Why are energy reforms important in the IMF programme?
The IMF has identified restoring the viability of Pakistan’s energy sector as one of the programme’s key reform priorities.
What is the RSF?
The Resilience and Sustainability Facility (RSF) is an IMF financing arrangement supporting longer-term reforms aimed at strengthening economic resilience and addressing climate-related vulnerabilities.
