New Delhi:
Jammu and Kashmir Chief Minister Omar Abdullah on Saturday slammed the International Monetary Fund (IMF) for approving a fresh $1 billion loan to Pakistan amid heightening tensions with India.
“I’m not sure how the “International Community” thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places,” Mr Abdullah posted on X.
I’m not sure how the “International Community” thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places.
— Omar Abdullah (@OmarAbdullah) May 10, 2025
The IMF on Friday said its Executive Board concluded the initial review of Pakistan’s economic reform programme under the Extended Fund Facility (EFF) arrangement and allowed for an immediate disbursement of around USD 1 billion.
The move, which was made as the Pakistani military launched weapon-carrying drones and missiles at western Indian cities and military installations, brought the total disbursements under the arrangement to the cash-strapped country to about USD 2.1 billion.
In a statement, the Washington-based global lender said that Pakistan’s 37-month EFF was approved on September 25, 2024, and “aims to build resilience and enable sustainable growth”, with priorities including entrenching macroeconomic sustainability.
It said the RSF will support Pakistan’s efforts to reduce vulnerabilities to natural disasters and to build economic and climate resilience.
India’s Stand On IMF’s Loans To Pakistan
India on Friday said it raised concerns over the efficacy of IMF programmes in the case of Pakistan, given its “poor track record”, and also on the possibility of “misuse” of debt financing funds for state-sponsored cross-border terrorism.
“Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF’s program conditions. In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 years,” the Ministry of Finance said in a statement.
“In the last 5 years, since 2019, there have been 4 IMF programs. Had the previous programs succeeded in putting in place a sound macro-economic policy environment, Pakistan would not have approached the Fund for yet another bail-out program,” it added.
India pointed out that such a track record calls into question either “the effectiveness” of the IMF program designs in the case of Pakistan or their “monitoring or their implementation” by the country.
“Pakistan military’s deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms. Even when a civilian government is in power now, the army continues to play an outsized role in domestic politics and extends its tentacles deep into the economy,” the statement read.
Tensions between India and Pakistan have soared following a terror attack in Jammu and Kashmir’s Pahalgam last month, which left 26 people dead.
