The IMF cleared a $1 billion loan for Pakistan as part of its $7 billion Extended Fund Facility (EFF) and $1.3 billion under the Resilience and Sustainability Facility (RSF). India abstained from voting, expressing concerns about the misuse of funds and Pakistan’s history with IMF programs.

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• IMF approved $1 billion loan tranche for Pakistan, part of a $7 billion program
• India abstained from voting due to concerns over the effectiveness of IMF loans to Pakistan
• India raised concerns about the misuse of funds for state-sponsored cross-border terrorism
• Pakistan has been a recurring borrower from the IMF, with poor track record in implementing programs
• Opposition parties criticized India for abstaining, calling for a stronger stance against Pakistan
• Indian government cited Pakistan’s military interference in economic affairs as a risk factor
• IMF’s repeated bailouts of Pakistan raise questions about the effectiveness of its programs
• India emphasized Pakistan’s lack of adherence to IMF program conditions in previous loans
• Pakistan’s military plays a significant role in economic decisions, influencing policy outcomes
• IMF’s $7 billion aid package to Pakistan was approved in September 2024, with multiple reviews