Washington DC [US], May 10 (ANI): The International Monetary Fund (IMF) approved the first review of Pakistan’s economic reform program under the Extended Fund Facility (EFF), enabling a disbursement of approximately USD 1 billion.
India, however, firmly opposed providing funds to a country that continues to sponsor cross-border terrorism, warning that such support carries reputational risks for global institutions and undermines international norms.
In a post on X, the IMF said, “IMF Board approved the first review of Pakistan’s economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong program implementation which has contributed to continuing economic recovery.”
This decision was made during the IMF’s review of a USD 1 billion Extended Fund Facility (EFF) and consideration of a fresh USD 1.3 billion Resilience and Sustainability Facility (RSF) for Pakistan, sources within the Government of India said.
India abstained from the recent IMF vote on approving a loan to Pakistan, not due to a lack of opposition, but because IMF rules do not permit a formal “no” vote, sources added. Further, New Delhi conveyed its strong dissent within the constraints of the IMF’s voting system and used the opportunity to record its objections formally.
India’s key objections included concerns over the effectiveness of ongoing IMF assistance, noting that Pakistan has received support in 28 of the past 35 years, including four programs in just the last five, without meaningful or lasting reform. India also highlighted the Pakistani military’s continued dominance in economic affairs, which undermines transparency, civilian oversight, and sustainable reform.
The IMF reviewed the Extended Fund Facility (EFF) lending program (USD 1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending program (USD 1.3 billion) for Pakistan.
In its official statement, India raised significant concerns regarding Pakistan’s track record with previous IMF loans and the potential misuse of funds for “state-sponsored cross-border terrorism.” India’s concerns extended beyond economic considerations to governance issues, particularly the role of Pakistan’s military in economic affairs.
The statement pointed out that “Pakistan military’s deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms.” It referenced a 2021 UN report that described military-linked businesses as the “largest conglomerate in Pakistan” and noted the army’s current leading role in Pakistan’s Special Investment Facilitation Council. (ANI)
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