Pakistan’s economic troubles have entered another difficult phase, as the International Monetary Fund (IMF) has laid out 23 conditions for releasing the next instalment of its loan.

Many of these requirements are expected to add further pressure on ordinary citizens already struggling with rising living costs.

According to the IMF, the government should stop fixing a support price for wheat and bring high-value surgical items under the sales tax net — moves that could push up food prices for farmers and consumers, while also making medical treatment more expensive.

The IMF has also called for wide-ranging reforms, particularly in the energy sector, along with changes to the laws governing state-owned enterprises, which have long been a drain on public finances.

Under the IMF conditions, the government is required to complete reforms in state-run enterprises by 2026.

The IMF has also proposed expanding the Benazir Income Support Programme to 10.2 million beneficiaries.

These measures are also aimed at reducing circular debt.

As part of efforts to stabilise Pakistan’s economy, the IMF has recommended several steps, with the imposition of additional taxes on the public being a key component.

Sources said the government is planning to impose an 18% sales tax on various items.

In addition, a 5% federal excise duty is proposed on fertilisers and agricultural pesticides, a move likely to create problems for farmers.

The IMF condition against fixing a wheat support price is likely to have significant implications for the agriculture sector.

The sources said that bringing high-value surgical items under the sales tax net is likely to increase healthcare costs.

The IMF has called for reforms in the energy sector, including tariff adjustment and cost-cutting — steps that could lead to higher electricity and fuel bills for households already struggling to make ends meet.

The sources said that additional taxes and rising prices under the IMF conditions are likely to push the cost of living further higher for millions of Pakistanis.