On Friday, the International Monetary Fund (IMF) approved the immediate release of about $1 billion to Pakistan under its current Extended Fund Facility (EFF). The move is made despite the objections raised by India over the misuse of the funds for cross-border terrorism.
The IMF also considered a new lending program for Pakistan, the Resilience and Sustainability Facility (RSF) worth $1.3 billion. In a statement, Pakistan Prime Minister Shehbaz Sharif was pleased with the approval, citing that the disbursement represented good news in Pakistan’s economic conditions and development opportunities.
India, however, raised its voice at an IMF board meeting, pointing to the threat of the money being diverted to state-supported terrorism. India voted against the package, but only abstained, citing a potential misuse of debt financing by Pakistan due to its history of financing cross-border terrorism.
Although the IMF recognized India’s concerns and abstention, it went ahead with the release, highlighting its interest in Pakistan’s economic revival. This go-ahead is a significant point for Pakistan, which is facing economic instability and needs international assistance to stabilize its financial system.
