Kathmandu. Amid tensions between India and Pakistan, the International Monetary Fund (IMF) on Friday approved additional credit facilities for Pakistan.
The Fund approved a review of the loan program, opening up a much-needed fund of $1 billion and agreed to new loan assistance of $1.4 billion.
According to The Daily Star, Pakistan reached the brink of Kangali in 2023. As the political crisis complicated the economic downturn, the nation’s debt burden reached a high level. At that time, it was saved by $7 billion in loan assistance from the fund. It was the 24th loan rescue in Pakistan since 1958.
“Authorities have demonstrated effective program implementation, which has contributed to financing and improving external conditions and continued economic recovery,” the fund said in a statement.
The board also approved authorities’ request for a $1.4 billion new loan program, provided to support efforts to “build economic resilience to climate risks and natural disasters.”
India, a member country of the Fund, was meaningfully absent from the board meeting. India also represents Bhutan, Sri Lanka and Bangladesh on the board.
Explaining the decision to abstain from the meeting, India’s Ministry of Finance, in a statement, “expressed concern over the effectiveness of the Fund’s programmes in view of Pakistan’s poor performance.” New Delhi also pointed out the possibility of Pakistan using money “for state-sponsored cross-border terrorism”.
The fund’s board’s decision comes amid a surge in conflicts between India and Pakistan. More than 50 people have been killed after three days of missile, artillery and drone attacks. The Dubey countries have ended the war with US mediation from 5 pm on Saturday.
