IMF Approves $1 Billion Loan to Pakistan Amid India’s Protests

May 10, 2025 Komal Das Plus

The IMF approved a \$1 billion disbursement to Pakistan under the Extended Fund Facility, despite India’s objections about misuse of funds for cross-border terrorism

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The IMF also considered an additional \$1.3 billion under the Resilience and Sustainability Facility for Pakistan

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Prime Minister Shehbaz Sharif expressed satisfaction, claiming Pakistan’s economy is improving and moving towards development

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India raised concerns over Pakistan’s poor track record in adhering to IMF conditions, highlighting continuous bailout requests without reforms

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India abstained from voting on the bailout, stating that Pakistan’s military interference poses risks to policymaking and reforms

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India also warned the IMF that rewarding Pakistan for sponsoring terrorism sends a dangerous global message and undermines international values

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The IMF’s decision follows heightened tensions after India’s missile strikes on terror targets in Pakistan and Pakistan’s retaliatory attacks

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Pakistan has escalated tensions with missile, artillery, and drone strikes along the International Border and LoC in Jammu and Kashmir

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