IMF Stands by Pakistan Bailout Amid Indian Concerns

The International Monetary Fund (IMF) has defended its recent $1.4 billion loan to Pakistan under the Extended Fund Facility (EFF), dismissing concerns raised by India over potential misuse of funds.

IMF spokesperson Julie Kozack stated that Pakistan had met all performance targets and made progress on structural reforms, leading to the approval of the disbursement. She emphasized that IMF funds are strictly intended for balance of payments issues and are not used for budget financing or military purposes.

Key Points:

IMF approved $1.4 billion for Pakistan under its climate resilience fund.

The first review of the $7 billion programme freed $1 billion in cash.

IMF assures strict safeguards, including zero central bank lending to the government.

India sought a broader review of Pakistan’s loans amid rising regional tensions.

IMF calls for peaceful resolution following recent conflicts.

Meanwhile, India has announced plans to push the Financial Action Task Force (FATF) to reconsider Pakistan’s status and oppose upcoming World Bank funding to Islamabad.

Pakistan, which was removed from the FATF grey list in 2022, has denied involvement in recent regional conflicts and maintains that its economic policies remain focused on stability and growth.

source geo news