Imf Relief To Pakistan: $1 Billion Loan Approved Despite India’s Warning Over Terror Funding

The International Monetary Fund (IMF) Executive Board has approved nan disbursement of a 2nd indebtedness tranche of $1 cardinal to Pakistan nether its Extended Fund Facility (EFF), moreover arsenic India abstained from voting, citing superior concerns astir nan misuse of financial assistance for state-sponsored terrorism, according to Pakistan Prime Minister's Office.

"Prime Minister Shehbaz Sharif expressed restitution complete nan support of a USD 1bn dollar instalment for Pakistan by nan IMF and nan nonaccomplishment of India’s high-handed strategies against it," according to a connection issued by nan PMO.

It said Pakistan's economical business has improved and nan state is moving towards development.

This support follows nan IMF’s reappraisal of Pakistan's advancement nether nan EFF program, which has been marked by recurring financial crises and a mediocre way grounds of implementing erstwhile IMF programs. India had raised alarms astir Pakistan’s accordant nonaccomplishment to usage past IMF loans effectively, questioning whether nan Fund’s programme designs and monitoring mechanisms are suited to nan country’s economical and governmental realities.

India highlighted that contempt 4 IMF programs successful nan past 5 years, Pakistan continues to look economical instability, making it unclear whether early disbursements would output immoderate much success. “Had nan erstwhile programs succeeded successful putting successful spot a sound macroeconomic argumentation environment, Pakistan would not person approached nan Fund for yet different bailout,” India pointed out, suggesting that nan IMF’s attack to Pakistan whitethorn not beryllium yielding semipermanent results.

A captious constituent raised by India was Pakistan’s military's persistent domiciled successful economical and governmental affairs. Despite a civilian government, Pakistan's subject continues to exert important power complete home policy, including economical decisions. A 2021 UN study called military-linked businesses nan “largest conglomerate successful Pakistan,” underscoring nan heavy entanglement of nan equipped forces successful nan country’s financial ecosystem. India expressed concerns that this ongoing subject interference could undermine immoderate reforms initiated done nan IMF’s assistance.

Moreover, India powerfully warned that continued financial support to Pakistan could inadvertently reward nan country’s ongoing sponsorship of cross-border terrorism, exposing world institutions to reputational risks. “Funding agencies must return into relationship nan civilized implications of supporting countries pinch specified a record,” India stated, underlining nan dangers of rewarding Pakistan’s destabilising activities successful nan region.

Published on: May 9, 2025 9:54 PM IST