IMF Approves $1 Billion Disbursement to Pakistan Amid Indian Opposition

The International Monetary Fund (IMF) has given the green light for the immediate release of approximately USD 1 billion to Pakistan as part of its Extended Fund Facility. This move is part of a broader strategy to bolster Pakistan's economic reform initiatives.

India abstained from voting at the IMF meeting in Washington, citing concerns over the misuse of funds, especially in regard to Pakistan's history of state-sponsored terrorism. India's opposition also focused on the perceived ineffectiveness of IMF programs in compelling Pakistan to implement lasting reforms.

Deputy Managing Director and Chair Nigel Clarke mentioned that Pakistan continues to face significant risks, driven by global economic uncertainty and internal vulnerabilities. Meanwhile, the IMF has approved a total disbursement of USD 2.1 billion under the current arrangement, with plans to aid Pakistan in building resilience against economic and climate challenges.

(With inputs from agencies.)