IMF approves $ 1 billion to Pakistan despite warnings on India’s terror funding
The International Monetary Fund (IMF) on Friday approved an urgent disbursement of $ 1 billion to Pakistan under the ongoing extended Fund Facility (EFF), protesting against India, which warned that the funds could be misused to support the state-proposed border-limit terrorism.The approval came during a board meeting in Washington, where the IMF also reviewed a proposed $ 1.3 billion loan to Pakistan under its flexibility and stability facility (RSF). India lodged a formal protest, citing Pakistan’s poor track records with IMF reforms and fearing fund diversion. New Delhi is to avoid votes.The Finance Ministry said in a statement, “Award sponsor of cross-border terrorism sends a dangerous message.” “It exposes funding agencies and donors to prestigious risks and reduces global values.”Pakistan Prime Minister Shahbaz Sharif welcomed Vikas, describing it as a “defeat of India’s high-level strategy” and international belief in Pakistan’s economic reform. Pakistan’s PMO said, “Indian efforts to vandalize the IMF program have failed.”The new recitation brings the total IMF funding in Pakistan for about 2 billion dollars under EFF. Full $ 7 billion package agreed in July last year is structured in 39 months in seven installments, tax restructuring, improvement in energy sector, and successful improvements including pricing adjustment in utilities and industries.The IMF and Pakistan arrived at a staff-tier agreement on the first bipolar review in March, including commitments such as the introduction of carbon levy and tariff revision.
