The International Monetary Fund (IMF) approved a disbursement of approximately USD 1 billion to Pakistan on Friday under its ongoing Extended Fund Facility (EFF), as confirmed by the Prime Minister’s Office (PMO) in Islamabad.
Prime Minister Shehbaz Sharif expressed satisfaction over the approval, emphasizing that the disbursement was a success for Pakistan despite opposition from India. India had previously raised concerns about the effectiveness of IMF programs for Pakistan, citing its poor track record and the potential misuse of debt financing for cross-border terrorism. India also opposed the IMF’s plan to grant an additional USD 2.3 billion loan to Pakistan, arguing that the funds could be diverted to fund state-sponsored terrorism.
India protested against the IMF’s decision at the board meeting, which reviewed the EFF loan and considered a new Resilience and Sustainability Facility (RSF) loan for Pakistan. New Delhi abstained from voting on the matter, arguing that rewarding continued sponsorship of cross-border terrorism undermines global values and exposes funding institutions to reputational risks.
In response, Pakistan’s PM office issued a statement calling India’s objections a “conspiracy” to derail Pakistan’s economic progress. It stated that India’s efforts to undermine the IMF loan program had failed and that the disbursement would help stabilize Pakistan’s economy and drive long-term recovery. The statement also highlighted improvements in Pakistan’s economic indicators, citing reforms in areas like tax policy, energy, and private sector development.
With the approval of this latest installment, Pakistan has now received approximately USD 2 billion from the IMF under this loan program. The loan, part of a three-year, USD 7 billion aid package reached last year, aims to provide macroeconomic stability and pave the way for more resilient and inclusive growth. The IMF had agreed to the first biannual review of the loan program in March, with further reforms planned in areas like carbon taxes, electricity tariffs, water pricing, and the automobile sector.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by DNN18.)
