IMF Approves $1 Billion for Pakistan Despite India’s Opposition Citing Terrorism Concerns

GG News Bureau
New Delhi/Islamabad, 10th May: The International Monetary Fund’s (IMF) Executive Board on Friday approved the first review of Pakistan’s $7 billion program, clearing the release of $1 billion in cash for the country currently involved in a conflict with India following the April 22 Pahalgam terror attack.

The Prime Minister Office (PMO) in Pakistan issued a statement quoting Prime Minister Muhammad Shehbaz Sharif expressing satisfaction over the approval. The latest disbursement brings the total funds released under the $7 billion program to $2 billion.

The approval came despite strong opposition from India, which had previously asked the IMF to review its loans to Pakistan, citing concerns over Islamabad’s continued support for cross-border terrorism.

On Friday, India formally registered its protest at the IMF board meeting, which reviewed the existing Extended Fund Facility (EFF) tranche of $1 billion and also considered a fresh Resilience and Sustainability Facility (RSF) lending program worth $1.3 billion for Pakistan. India opposed the proposal to extend these funds, citing the risk of their misuse.

A statement from the Centre in India highlighted the concerns, stating that “India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.” The statement reiterated concerns that “fungible inflows from international financial institutions, like IMF, could be misused for military and state sponsored cross border terrorist purposes.”

Reuters reported that the staff-level agreement for the bailout program was reached before the recent escalation of tensions between New Delhi and Islamabad. The global body did not respond to Reuters’ request for comment following the board’s approval.