IMF Clears $1 Billion Loan for Pakistan as India Abstains Over Terror Funding Concerns

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Updated May 9, 2025, 05:46 PM

The International Monetary Fund’s Executive Board on 9 May approved a fresh US$1 billion disbursement to Pakistan, the second tranche under the country’s ongoing bailout programme, according to officials familiar with the deliberations. India told the board it opposes additional lending to Islamabad, arguing the money could be diverted to finance cross-border terrorism and citing what it called Pakistan’s poor record of implementing previous IMF-mandated reforms, the Finance Ministry said. Because the IMF voting procedure does not allow members to cast a negative ballot, New Delhi abstained rather than support the package. The abstention was formally noted but did not prevent the loan from passing, with a majority of the board backing the release of funds. The approval provides short-term relief for Pakistan’s strained finances, while India signalled it will continue to press for stricter oversight and reforms in future IMF engagements with its neighbour.

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#International Monetary Fund #Executive Board #Pakistan #India #Islamabad #IMF #Finance Ministry #New Delhi

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Sources

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Rajdeep Sardesai

@sardesairajdeep

Breaking: India abstains from vote for loan to Pakistan at the IMF executive board meeting.. qs: why didn’t we vote against Islamabad given the stakes involved? Because there is reportedly no negative vote allowed. You either vote for or abstain. (Thank you @RajatSethi86 for the

South Asia Index

@SouthAsiaIndex

Just IN: IMF Executive Board approves $1B loan for Pakistan — despite India raising concerns at the release of loan.

CNBC-TV18

@CNBCTV18Live

#NewsFlash | Pakistan Claims #IMF Clears $1 Billion Package; #India Says It Abstained From The Vote Alert: IMF Statement On Pakistan Package Awaited #OperationSindoor https://t.co/sTFFy2fVwH