Despite India's protest, IMF justifies $1 billion bailout to Pakistan: ‘Met all required targets’

The International Monetary Fund (IMF) has justified its $1 cardinal bailout to Pakistan, contempt caller objections from India. According to the authoritative connection issued by the IMF, Pakistan has “met each the required targets” to person the latest indebtedness instalment.

Pakistan's Prime Minister Shehbaz Sharif speaks astatine United Nations General Assembly.(AFP file)

This latest bailout to Pakistan comes arsenic portion of the enactment bundle extended to the debt-ridden country. Under the Extended Fund Facility programme, which was approved successful September 2024, Pakistan has received astir $2.1 billion. 

IMF defends indebtedness to Pakistan

Speaking astatine a property briefing, IMF's manager of the communications department, Julie Kozack justified the indebtedness to Pakistan and stated that the state has met each its targets.

"Our Board recovered that Pakistan had so met each of the targets. It had made advancement connected immoderate of the reforms, and for that reason, the Board went up and approved the program," Kozack told reporters.

"The archetypal reappraisal was planned for the archetypal 4th of 2025. And accordant with that timeline, connected March 25 of 2025, the IMF unit and the Pakistani authorities reached a staff-level statement connected the archetypal reappraisal for the EFF. That agreement, that staff-level agreement, was past presented to our Executive Board, which completed the reappraisal connected May 9. As a result, Pakistan received the disbursement astatine that time," she added further.

Amid the tensions with India, the IMF gave Pakistan 11 caller conditions successful bid to person the loan. As per reports, these conditions included parliamentary approval, summation successful indebtedness servicing surcharge successful electricity, lifting restrictions connected imports and more.

India lodges protestation implicit bailout

Last week, India erstwhile again asked the IMF to reconsider its bailout bundle to Pakistan, citing the usage of the wealth to money transverse borderline terrorism.

Defence minister Rajnath Singh added that the IMF assistance to Pakistan was a "form of indirect backing to terror".

On May 9, a time earlier the ceasefire betwixt India and Pakistan, New Delhi slammed the IMF for its bailout bundle for Pakistan, citing misuse of the funds for terrorism.

"In the 35 years since 1989, Pakistan has had disbursements from the IMF successful 28 years. In the past 5 years since 2019, determination person been 4 IMF programs. Had the erstwhile programs succeeded successful putting successful spot a dependable macro-economic argumentation environment, Pakistan would not person approached the Fund for yet different bail-out program," work the authoritative connection issued by the Indian government.

Despite India abstaining from the ballot and lodging protest, the bailout bundle was cleared.