The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan for the release of the next bailout tranche, taking the total number of conditions to 50, as reported by The Express Tribune on May 18, 2025. Among the new conditions are parliamentary approval of a ₹17.6 trillion budget, higher electricity debt servicing surcharges, and easing restrictions on importing used cars over three years old.

The IMF also expressed concern that escalating tensions between India and Pakistan may jeopardize the programme's fiscal, external, and reform objectives. The report noted that recent Indo-Pak tensions have led to an 18% hike in Pakistan's defence budget, reaching over ₹2.5 trillion - significantly higher than the IMF's ₹2.414 trillion projection.

Despite geopolitical stress, market reaction has remained relatively stable. However, the IMF cautioned that prolonged conflict could severely impact economic stability and the success of the financial aid programme.