India Today and The Times of India each publish articles supporting this decision by the IMF.
IMF Reaches Agreement With Pakistan The International Monetary Fund (IMF) recently upheld its decision to release a $1 billion loan installment to Pakistan under its Extended Fund Facility (EFF) program, despite fierce objections from India regarding how funds might be misused to support terrorism. News9live +7, The Times of India +7, NDTv +7 and Business Standard +3 reported these developments respectively.
Julie Kozack, IMF Director of Communications stated at a press briefing that Pakistan successfully completed its program’s initial review and was approved for disbursement after meeting all targets and making progress towards reforms; therefore the Board approved of disbursing funds, she added. Reuters and Business Standard both report positive news for Pakistan while The Financial Express has posted encouraging numbers too; see https://ndtv.com for more on this story
India abstained from voting at the International Monetary Fund meeting last Friday due to Pakistan’s alleged misuse of international funds to finance terrorist activities, with Indian officials suggesting financial assistance may indirectly fund state-sponsored terror. India Today and The Financial Express both reported India’s abstention.
As a response, the IMF stressed that its funds are intended solely for balance of payments support and are channeled directly to Pakistan’s central bank rather than through any government treasury, in order to avoid any diversion of funds for military or unrelated expenditures.
India Today and The Financial Express also reported these concerns and Geo News highlighted them further.
+2
The IMF also noted that Pakistan’s loan disbursement was part of its Economic Framework Facility Program approved in September 2024, and was distributed as part of an annual review process. The loan disbursement is part of a $7 billion package intended to stabilize Pakistan through structural reforms and fiscal consolidation; its $1 billion tranche forms part of this package (NDTV.com +6 = India Today+6 and Hindustan Times both reported this event as news). For more details please see these sources; India Today and Hindustan Times for further coverage
Indian efforts to cut financial support to Pakistan despite IMF assurances have intensified. New Delhi plans to challenge forthcoming World Bank loans that go directly to Pakistan while lobbying for reinstatement on the Financial Action Task Force grey list, which flags countries with deficiencies in terms of countering money laundering and terrorist financing.
The Times of India
As part of its ongoing bailout program, the IMF has issued 11 conditions on Pakistan as part of their ongoing bailout agreement. These include parliamentary approval of budgetary measures, lifting import restrictions and increasing debt servicing surcharges in the electricity sector – measures designed to promote fiscal discipline and economic stability. For more details visit Newsonair.gov.in; @EconomicTimes and Hindustan Times will have more on these developments.
IMF also cautioned Pakistan that rising tensions with India could threaten its planned economic reforms, warning that increasing hostility between them would heighten “enterprise risk” associated with reform initiatives and increase “reputational risk”, potentially leading to misuse of funds by corrupt regimes in both countries.
Financial Express + 2
Times of India +2 => Business Standard.
As events develop, the IMF’s decision emphasizes the difficult balance between offering financial aid to stabilize economies and responding to geopolitical concerns raised by member states. As developments unfold, international communities continue to monitor events closely while emphasizing transparency and strict adherence to stipulated conditions to ensure effective use of funds.
