IMF Loan to Pakistan
🔹 India raises serious concerns over IMF’s repeated bailouts to Pakistan
In a recent IMF board meeting, the International Monetary Fund (IMF) approved a $1 billion loan under its $7 billion Extended Fund Facility (EFF) and an additional $1.3 billion under the Resilience and Sustainability Facility (RSF) for Pakistan. However, India abstained from the vote, citing serious concerns regarding the efficacy and misuse of such funding.
🔸 India’s Strong Opposition to IMF Funding for Pakistan
The Ministry of Finance, Government of India, issued a detailed statement expressing that the repeated bailouts to Pakistan raise doubts about either the effectiveness of IMF program designs, their monitoring, or Pakistan’s implementation of these programs.
“India strongly dissents, given Pakistan’s poor track record and potential misuse of IMF funds for state-sponsored cross-border terrorism,” the statement said.
🔹 Misuse of IMF Funds – A Shared Global Concern
India warned that fungible inflows from global financial institutions like the IMF could be misused for military and terrorist activities. These concerns, the Indian government stated, were echoed by several IMF member countries.
“Pakistan’s military-linked businesses continue to dominate economic policies, increasing risks of reform reversal,” India added, referencing a 2021 UN report describing them as the “largest conglomerate in Pakistan.”
🔸 Criticism of India’s Abstention
Despite the strong statement, India’s decision to abstain instead of vote “No” drew criticism from opposition leaders, including Congress MP Jairam Ramesh. He said:
“Abstention is not enough. A strong NO would have sent a powerful signal.”
However, Indian officials clarified that IMF procedures do not permit a formal “No” vote, as decisions are typically made via consensus or abstentions.
🔹 Pakistan’s Long-Term Dependence on IMF
India highlighted that Pakistan has taken disbursements from the IMF in 28 of the past 35 years, with four separate loan programs in the last five years alone.
“Had previous IMF programs been effective, Pakistan wouldn’t need another bailout,” the Indian statement read.
🔸 Geopolitical Risk of Repeated Bailouts
India also cited a chapter from the IMF’s Evaluation Report on Prolonged Use of IMF Resources, noting that political motivations may be influencing IMF lending to Pakistan.
“Pakistan has become a ‘too big to fail’ debtor,” India warned, urging the IMF Board to “look deep within before approving further bailouts.”
For more updates about imf loan to pakistan, explore the Current News. Feel free to share your thoughts and comments.
If you’re passionate about building a successful blogging website, check out this helpful guide at Coding Tag – How to Start a Successful Blog. It offers practical steps and expert tips to kickstart your blogging journey!
Official
