IMF Approves $1 Billion Disbursement to Pakistan Amid Geopolitical Strain

The International Monetary Fund (IMF) has approved a $1 billion disbursement to Pakistan as part of its ongoing Extended Fund Facility (EFF). The Washington-based global lender announced the decision following a review of Pakistan's economic reform measures under the EFF arrangement.

The disbursement brings total disbursements to Pakistan under the program to approximately $2.1 billion. Additionally, the IMF's Executive Board approved access to $1.4 billion under the Resilience and Sustainability Facility (RSF) to support Pakistan's efforts against natural disaster vulnerabilities and for economic resilience.

India opposed the new disbursement, expressing concerns about the potential misuse of funds for terrorism. This opposition comes amid escalating tensions between India and Pakistan. Despite India's abstention from voting, the IMF proceeded with the disbursement to aid Pakistan's economic recovery.

(With inputs from agencies.)