The International Monetary Fund ( IMF) on Friday approved the immediate distribution of$ 1 billion to Pakistan under the ongoing Extended Fund Facility ( EFF), drawing vehement opposition from India, who had warned that the funds could be used to fund state-sponsored cross-border terrorism. The board meeting in Washington, where the IMF also reviewed a proposed$ 1.3 billion loan to Pakistan under its Resilience and Sustainability Facility ( RSF), received the approval. India lodged a formal opposition, citing Pakistan’s bad performance with IMF reforms and expressing concerns about fund diversion. New Delhi sailed out of the voting. The fund department said in a statement that rewarding continuing support of international terrorism sends a “dangerous information.”
Sindoor Procedure
Shehbaz Sharif, Pakistan’s prime minister, described the development as a “defeat of India’s high-handed techniques” and a sign of international trust in Pakistan’s economic treatment.” It exposes funding agencies to social risks and undermines international values.” The Pak’s PMO claimed that India had made” a conspiracy to divert attention” by plotting” a conspiracy to divert attention” through “unilateral aggression” and that the new money increase to about$ 2 billion from the EFF. The complete$ 7 billion deal, which was agreed in July last year, is broken up into seven installments, contingent on successful measures, including tax reform, energy industry reform, and price changes for utilities and sectors. In March, the IMF and Pakistan reached an agreement at the staff level regarding the first yearly evaluation, which included commitments like the introduction of a carbon tax and price changes.
