This financial support comes amid regional tensions, with India expressing concerns over the potential misuse of IMF funds by Pakistan.
The International Monetary Fund (IMF) has approved the first review of Pakistan’s $7 billion Extended Fund Facility (EFF), unlocking an immediate disbursement of approximately $1 billion to support the country’s economic stabilization efforts.
Additionally, the IMF has approved a new $1.4 billion loan for Pakistan under its Resilience and Sustainability Facility (RSF), aimed at bolstering climate resilience.
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This financial support comes amid regional tensions, with India expressing concerns over the potential misuse of IMF funds by Pakistan. India abstained from the IMF board vote, citing apprehensions about Pakistan’s alleged support for cross-border terrorism.
In response, Pakistani Prime Minister Shehbaz Sharif dismissed India’s objections, emphasizing the importance of the IMF’s assistance in achieving economic stability.
The IMF‘s endorsement reflects confidence in Pakistan’s recent policy reforms, which have contributed to economic stabilization and renewed investor confidence. The funds are expected to bolster Pakistan’s foreign exchange reserves and support ongoing structural reforms.