Amid rising tensions with India, IMF gives USD 1 billion loan to Pakistan despite strong objections by Modi govt
Amid rising tensions with India, Pakistan secures a $1.3 billion loan approval from the IMF, boosting its economic stability and signaling international financial support.
New Delhi: In a foremost enhance to Pakistan’s economic system, the Global Monetary Fund (IMF) on Friday current the instantaneous disbursement of roughly USD 1 billion below the continuing Extended Fund Facility (EFF) programme, based on a assertion released by the Prime Minister’s Office (PMO).
In a assertion, the Washington-based world lender said its Govt Board concluded the initial evaluate of Pakistan’s economic reform programme below the Extended Fund Facility (EFF) arrangement.
“This decision permits for a straight away disbursement of around USD 1 billion (SDR 760 million), bringing complete disbursements below the arrangement to about USD 2.1 billion (SDR 1.52 billion),” the agency said.
Apart from to, the IMF Govt Board current the authorities’ search info from for an arrangement below the Resilience and Sustainability Facility (RSF), with fetch admission to of about USD 1.4 billion (SDR 1 billion).
Pakistan thanks IMF
Pakistan’s Prime Minister Shehbaz Sharif applauded the Global Monetary Fund’s (IMF) approval of a mortgage tranche, viewing it as worthwhile for the nation’s financial health. The Prime Minister’s Office furthermore suggested that this success underscored Pakistan’s economic resilience, in particular in distinction to what it characterized as unsuccessful Indian stress ways.
The PMO extra emphasized that Pakistan’s economic inform has improved in most fresh months, crediting ongoing reforms and global cooperation. “The nation is transferring in direction of vogue,” the assertion famed, suggesting rising optimism throughout the authorities over the nation’s financial trajectory.
The Global Monetary Fund (IMF) at present reviewed the Extended Fund Facility (EFF) lending program ($1 billion) and furthermore idea a couple of fresh Resilience and Sustainability Facility (RSF) lending program ($1.3 billion) for Pakistan. As an brisk and responsible member nation,… pic.twitter.com/qGbHJF4SeK
— ANI (@ANI) May 9, 2025
What IMF said
The IMF said in a assertion that Pakistan’s 37-month EFF turned into once current on September 25, 2024, and “targets to kind resilience and enable sustainable development”, with priorities including entrenching macroeconomic sustainability.
It said the RSF will make stronger Pakistan’s efforts to sever help vulnerabilities to natural disasters and to kind economic and local climate resilience.
India registers solid objection
India earlier raised concerns over the efficacy of IMF programmes in the case of Pakistan, given its unlucky music document, and furthermore on the chance of misuse of debt financing funds for voice-backed sinister-border terrorism.
New Delhi furthermore adverse the IMF’s proposal to lengthen fresh loans of USD 2.3 billion to Pakistan, announcing they'll very well be misused for financing voice-backed sinister-border terrorism.
India registered its bellow on the board of IMF, which met on Friday to identify the EFF lending programme for Pakistan.
New Delhi abstained from vote casting on the foremost IMF assembly.
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