IMF Approves $1 Billion EFF, $1.4 Billion RSF Loans to Pakistan as India Abstains

40 posts • GPT (4.1)

Updated May 10, 2025, 02:05 PM

The International Monetary Fund (IMF) Executive Board has approved the immediate disbursement of approximately $1 billion to Pakistan under the Extended Fund Facility (EFF), and an additional $1.4 billion under the Resilience and Sustainability Facility (RSF), bringing total recent support to about $2.4 billion.

India abstained from the IMF vote on these loans, citing concerns over Pakistan's poor track record with previous IMF programs and the risk that funds could be misused for state-sponsored cross-border terrorism. India highlighted that Pakistan has received IMF assistance in 28 of the past 35 years, including four programs since 2019, without achieving meaningful reform.

Indian officials also expressed concerns about the Pakistani military's continued dominance in economic affairs, warning that this undermines transparency, civilian oversight, and sustainable reform. India’s abstention was due to IMF voting procedures, which do not allow a formal 'no' vote.

The IMF stated that Pakistan has made significant progress in stabilizing its economy, citing a primary fiscal surplus of 2% of GDP in the first half of FY2025, inflation at 0.3% in April, and improved foreign exchange reserves at $10.3 billion, projected to reach $13.9 billion by June. The RSF program is intended to support climate resilience and disaster preparedness.

The IMF decision has drawn criticism from Indian political leaders and Jammu and Kashmir Chief Minister Omar Abdullah, who questioned the international community's support for Pakistan amid ongoing tensions and recent attacks in the region. AIMIM chief Asaduddin Owaisi also criticized the IMF loan, calling it 'official begging' and raising concerns over its potential use.

Despite India's objections, the IMF emphasized the need for Pakistan to maintain fiscal discipline and accelerate reforms to ensure sustainable growth and reduce vulnerabilities.

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#International Monetary Fund #IMF #Executive Board #Pakistan #Extended Fund Facility #EFF #Resilience and Sustainability Facility #RSF #India #Indian #Pakistani military #Jammu and Kashmir #Omar Abdullah #AIMIM #Asaduddin Owaisi

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Sources

economictimes.indiatimes.com(5)abplive.com(5)directus.gr(4)hindustantimes.com(4)

Chitra Subramaniam

@chitraSD

The #IMF just cleared a loan to #Pakistan. The #US is the largest contributor to the fund. It has refused to call Pakistan a terrorist state. So has the #G7 - they are also major players in the fund. All ask #India to exercise restraint. Follow the money. #ceasefire

Andreas Mountzouroulias 🇬🇷

@andreasmoun

• US duress of withholding #IMF loans was specific - The 1 billion provisional release linked to immediate acceptance & balance subject to compliance #India #IndiaPakistanWar #Pakistan https://t.co/supI4boKrc

Andreas Mountzouroulias 🇬🇷

@andreasmoun

Exclusive: US pressure on Pakistan for IMF loans — This is how Islamabad accepted the deal #OperationSindoor #India #IndiaPakistanWar #Ινδια #Πακισταν https://t.co/supI4boKrc