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Despite India’s Objection, IMF Approves Multi-Billion Dollar Bailout Package for Pakistan
Despite India's strong objections, the IMF has approved a $2.4 billion bailout for Pakistan, raising concerns over global financial ethics, terrorism funding, and international institutional credibility.
IMF (PC- Social Media)
IMF Approves Bailout Amidst India’s Strong Objection
Despite Pakistan’s continued hostile activities, the International Monetary Fund (IMF) has approved two bailout packages amounting to $2.4 billion. These approvals came despite strong objections raised by India, leading to serious questions about not only the IMF’s intentions but also the broader commitment of the international community to global security and ethics.
The Indian Ministry of Finance expressed its concern in a statement:
“Rewarding the continuous sponsorship of cross-border terrorism sends a dangerous message to the global community, undermines the credibility of financial institutions and donors, and weakens international values.”
What Is the Case?
Breakdown of IMF’s Financial Approvals for Pakistan
The IMF’s Executive Board has approved two funding decisions for Pakistan, totaling approximately $2.4 billion. Following its Executive Board meeting on May 9, the IMF stated that it had completed the first review of Pakistan’s economic reform program supported under the Extended Fund Facility (EFF). This resulted in the approval of an immediate disbursement of around $1 billion, bringing the total debt support under the facility to approximately $2.1 billion.
In addition to this, the IMF also approved Pakistan’s request for funding under the Resilience and Sustainability Facility (RSF), granting access to an additional $1.4 billion. The RSF is designed to help countries address vulnerabilities related to climate change.
India’s Opposition to the Vote
India chose not to participate in the vote on the fund disbursal, further highlighting its concern over Pakistan’s poor financial and security track record. India has also voiced fears that Pakistan could misuse the funds to finance state-sponsored cross-border terrorism.
India pointed out that Pakistan has received funding from the IMF in 28 out of the last 35 years, with four programs implemented within just five years. It also warned that military interference in Pakistan continues to undermine effective policymaking and reforms. India cautioned that continued support for Pakistan, despite its involvement in cross-border terrorism, undermines global values and endangers the credibility of international financial institutions.
This protest came amid escalating tensions following India’s retaliatory missile strikes.
Strong Criticism of the IMF
Omar Abdullah’s Statement
Former Jammu & Kashmir Chief Minister Omar Abdullah also condemned the IMF’s move, questioning how such a decision helps reduce tensions in the region.
He took to X (formerly Twitter) and wrote:
“I’m not sure how the international community believes that tensions in the subcontinent will reduce when the IMF reimburses Pakistan for all the ammunition used to devastate areas like Poonch, Rajouri, Uri, Tangdhar, and many others.”
Growing Indian Frustration
Omar Abdullah’s remarks reflect the growing frustration within Indian leadership over global financial bodies indirectly supporting a nation engaged in armed hostilities.
Credibility of the IMF Under Scrutiny
The IMF’s decision, despite India’s protests and Pakistan’s longstanding record of security violations and misuse of funds, is now being viewed as a major test for the credibility and ethical responsibility of international financial institutions.
