Islamabad, May 18 -- The International Monetary Fund (IMF) has imposed 11 additional conditions on Pakistan for the release of the next tranche under its bailout programme and cautioned that escalating tensions with India could threaten the scheme's fiscal, external, and reform objectives, The Express Tribune reported on Sunday.

Among the new demands is the parliamentary approval of a Rs 17.6 trillion budget, a hike in the debt servicing surcharge on electricity bills, and the lifting of import restrictions on used cars older than three years.

The report noted a marked increase in India-Pakistan tensions over the past two weeks.

However, the market response has so far been muted, with the stock market holding on to most of its recent g...