IMF Approves $1 Billion For Pakistan Despite India’s Protest Over Terror Funding Concerns
IMF Approves $1 Billion For Pakistan Despite India’s Protest Over Terror Funding Concerns
The International Monetary Fund (IMF) has cleared the immediate release of approximately $1 billion to Pakistan under the Extended Fund Facility (EFF), as confirmed by the office of Pakistan’s Prime Minister. The decision comes amid firm objections from India, which has voiced strong concerns over the alleged misuse of such funds in supporting cross-border terrorism.
The IMF not only reviewed the ongoing $1 billion support through the EFF but also considered extending a separate $1.3 billion package under the Resilience and Sustainability Facility (RSF), aimed at aiding Pakistan’s economic recovery and stability.
Prime Minister Shehbaz Sharif welcomed the IMF’s green light for the latest installment, describing it as a reflection of Pakistan’s improving economy and commitment to sustainable development.
India, however, expressed deep reservations at the IMF board meeting. Citing Pakistan’s history of poor compliance with IMF reform conditions, Indian representatives abstained from voting on the disbursement—though IMF procedures do not allow formal opposition votes. The IMF acknowledged India’s concerns and noted its abstention.
According to the Indian finance ministry, Pakistan has been a “prolonged borrower,” having received IMF funding for 28 of the past 35 years. India argued that the country’s lack of structural reform and repeated bailouts undermine the credibility of such financial assistance. It also warned that continued IMF support without accountability risks enabling state-backed terrorism and weakens global efforts to uphold international norms.
India further emphasized that Pakistan’s military influence over its economic and political institutions poses a major challenge to meaningful reform. The Indian side also warned of reputational risks for global financial bodies supporting nations accused of harboring or funding terror networks.
Pakistan and the IMF had agreed to a three-year $7 billion loan deal in July last year. The agreement aims to help stabilize the economy and lay the foundation for long-term, inclusive growth.
The IMF’s decision comes at a time of heightened military tension between India and Pakistan. In response to a deadly terror attack in Pahalgam on April 22, which claimed 26 lives, India launched missile strikes on what it identified as terror infrastructure across the border, including in Pakistan-occupied Kashmir.
Following those operations, Pakistan has retaliated with missile, artillery, and drone attacks across the International Border and Line of Control (LoC), targeting Indian military assets in Jammu & Kashmir, Punjab, and Rajasthan—further escalating the standoff between the two nuclear-armed neighbors.
