After the first meeting of the Executive Board, the International Monetary Fund (IMF) completed the first review of Pakistan바카라s economic reform program and approved a disbursement of around $1 billion (SDR 760 million). Under the arrangement made with the IMF in late 2024, Pakistan had agreed to meet certain conditions, which the Fund has found to be largely fulfilled. Accordingly, a further extension has been granted, as stated on the official IMF website. The agreement aims to build resilience and enable sustainable growth.
Reuters reported that the staff-level agreement for the bailout program was reached between the IMF and the Pakistani government before tensions escalated between New Delhi and Islamabad
India had abstained from the voting on the International Monetary Fund바카라s (IMF) proposed $1.3 billion bailout package for Pakistan, saying the latter country had a 바카라poor track record바카라 in effectively utilising previous financial aid.
New Delhi바카라s decision to not vote at the IMF meet on May 9, 2025, comes at the heels of increasing tensions between the countries, following India바카라s airstrike against terror camps inside Pakistan and Pakistan-occupied-Kashmir (PoK) on May 7. The strikes were a response to the April 22 Pahalgam terror attack for which Indian intelligence blames terrorist group The Resistant Front (TRF), an offshoot of Lashkar-e-Taiba (LeT).
At the May 9 meeting, India flagged concerns that Pakistan had failed to meet the loan conditions set by the IMF. New Delhi also argued that aid to the neighbour country indirectly supports terror groups like LeT.
When the Executive Board vote was called, India chose to abstain rather than vote outright against the package. In its statement, India said that its decision was because of Pakistan바카라s huge debt burden, the potential to indirectly fund terror groups, and the need for the IMF to uphold more stringent standards of governance.
Pakistan relies heavily on the loans from IMF and cutting off funding would be a huge setback for the country바카라s floundering economy. Pakistan had managed to secure a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March. The 2024 programme was Pakistan's 24th.
The Indian government is however asking the IMF and other agencies to review the loans to Pakistan, citing terror concerns. Apart from the IMF, India has also approached the global anti-money laundering agency, the Financial Action Task Force (FATF), to put Islamabad on the grey list.
