IMF has approved loans to Pakistan

In an effort to support Pakistan's economic stability in the face of persistent difficulties, the International Monetary Fund (IMF) has authorized a sizeable amount of financial aid for the nation.Overview of IMF Assistance

India's Concerns

India's Executive Director at the IMF abstained from the vote approving the recent disbursement and intends to express its stance at the next IMF board meeting. India has voiced reservations about the IMF's financial support to Pakistan, citing worries about possible misuse of funds for activities that are harmful to regional stability.

Economic Context

Pakistan's economy has been under strain, with external debt exceeding $131 billion and foreign exchange reserves covering only a few months of imports. The IMF's support is crucial for Pakistan to meet its financial obligations and implement necessary economic reforms. The IMF's assistance aims to stabilize Pakistan's economy, promote structural reforms, and address climate-related challenges, while navigating complex regional dynamics.

Total IMF Loan Amounts to Pakistan

Extended Fund Facility (EFF) – $7 Billion

• In September 2024, the IMF approved a 37-month Extended Fund Facility totaling approximately $7 billion to aid Pakistan's economic reforms and stabilization efforts.

• As of May 2025, Pakistan has received $2 billion under this program, including a recent disbursement of $1 billion following the first review. 
• Resilience and Sustainability Facility (RSF) – $1.4 Billion

• In May 2025, the IMF approved a new $1.4 billion loan under its Resilience and Sustainability Facility to assist Pakistan in addressing climate-related challenges.