RNS: The International Monetary Fund (IMF) has approved the disbursement of approximately $1 billion to Pakistan under its $7 billion Extended Fund Facility (EFF), despite India raising strong objections over Pakistan’s alleged sponsorship of cross-border terrorism.
In its official statement, the IMF said Pakistan’s policy actions under the program have contributed to “stabilizing the economy and rebuilding confidence” despite a turbulent global economic environment. The board also completed the first review of the EFF arrangement and approved the $1.4 billion climate resilience support, bringing total disbursements under the program to $2.1 billion.
The loan approval follows a staff-level agreement reached on March 25, which included reform commitments such as a carbon levy, electricity tariff revisions, increased water pricing, and the liberalization of the automobile sector.
According to the agreement, Pakistan will receive seven equal instalments of around $1 billion each, provided it successfully completes scheduled biannual reviews over the next 39 months.
India, however, formally protested at the IMF board meeting, expressing concern that the funds could be misused by Pakistan, particularly in light of ongoing hostilities. New Delhi abstained from voting on the disbursement, highlighting that Pakistan had simultaneously launched missiles and weaponized drones at Indian military sites and cities for a third consecutive night.
Reacting to the IMF’s decision, Pakistan Prime Minister Shehbaz Sharif, as reported by Reuters and PTI, expressed satisfaction, claiming India’s “high-handed tactics” had failed to block the funds.
The IMF’s move comes at a time of heightened tensions between the nuclear-armed neighbors, with India warning of Pakistan’s continued involvement in state-sponsored cross-border aggression.
Meanwhile, Jammu and Kashmir Chief Minister Omar Abdullah on Saturday hit out at the IMF for granting a billion dollar loan to Pakistan, saying the global financial organisation was “essentially reimbursing” Islamabad for the ammunition used to devastate border areas of the Union territory.
I’m not sure how the “International Community” thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places.
— Omar Abdullah (@OmarAbdullah) May 10, 2025
