Amid rising tensions with India, Pakistan secures a $1.3 billion loan approval from the IMF, boosting its economic stability and signaling international financial support.
Amid escalating tensions with India, Pakistan gets 1.3 billion dollars loan sanctions from IMF
New Delhi: In a significant boost to Pakistan’s economy, the International Monetary Fund (IMF) on Friday approved the immediate disbursement of approximately USD 1 billion under the ongoing Extended Fund Facility (EFF) programme, according to a statement released by the Prime Minister’s Office (PMO).
In a statement, the Washington-based global lender said its Executive Board concluded the initial review of Pakistan’s economic reform programme under the Extended Fund Facility (EFF) arrangement.
“This decision allows for an immediate disbursement of around USD 1 billion (SDR 760 million), bringing total disbursements under the arrangement to about USD 2.1 billion (SDR 1.52 billion),” the agency said.
In addition, the IMF Executive Board approved the authorities’ request for an arrangement under the Resilience and Sustainability Facility (RSF), with access of about USD 1.4 billion (SDR 1 billion).
Pakistan thanks IMF
Pakistan’s Prime Minister Shehbaz Sharif applauded the International Monetary Fund’s (IMF) approval of a loan tranche, viewing it as beneficial for the nation’s financial health. The Prime Minister’s Office also suggested that this success underscored Pakistan’s economic resilience, particularly in contrast to what it characterized as unsuccessful Indian pressure tactics.
The PMO further emphasized that Pakistan’s economic situation has improved in recent months, crediting ongoing reforms and international cooperation. “The country is moving towards development,” the statement noted, suggesting growing optimism within the government over the nation’s financial trajectory.
The International Monetary Fund (IMF) today reviewed the Extended Fund Facility (EFF) lending program ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending program ($1.3 billion) for Pakistan. As an active and responsible member country,… pic.twitter.com/qGbHJF4SeK
— ANI (@ANI) May 9, 2025
What IMF said
The IMF said in a statement 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 registers strong objection
India earlier 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.
New Delhi also opposed the IMF’s proposal to extend fresh loans of USD 2.3 billion to Pakistan, saying they could be misused for financing state-sponsored cross-border terrorism.
India registered its protest at the board of IMF, which met on Friday to review the EFF lending programme for Pakistan.
New Delhi abstained from voting at the crucial IMF meeting.