Pakistan gets $2.3 billion bailout package from IMF amid conflict with India, New Delhi abstains from voting due to…
The IMF board approved two loan programs — $1 billion under the Extended Fund Facility (EFF) and $1.3 billion under the Resilience and Sustainability Facility (RSF).
India has raised strong objections to the International Monetary Fund’s (IMF) decision to provide a $2.3 billion bailout package to Pakistan, citing concerns over fund misuse and links to cross-border terrorism. The IMF board approved two loan programs — $1 billion under the Extended Fund Facility (EFF) and $1.3 billion under the Resilience and Sustainability Facility (RSF).
At the IMF meeting on Friday, India chose to abstain from voting, instead of voting in favour or against. The Finance Ministry said in a statement that India, as a responsible member, questioned the effectiveness of IMF programs in Pakistan, given its long history of misusing funds and ignoring reform measures.
India also highlighted concerns that such bailouts could indirectly support state-sponsored terrorism. The ministry pointed to past IMF evaluations that suggested political reasons often influence loans to Pakistan.
“Repeated bailouts have made Pakistan a heavily indebted country and a too-big-to-fail debtor,” the statement said. India warned that continuing to support Pakistan without accountability could damage the credibility of global institutions and send a wrong message to the international community.
Congress criticised the Modi government for only abstaining. Party leader Jairam Ramesh said a strong “No” vote would have sent a clearer message. He added that the move came just days after an attack in Pahalgam, which killed 26 Indians.
India has also questioned the role of Pakistan’s military in economic decisions, saying it leads to policy instability. A UN report earlier described Pakistan’s army-run businesses as the country’s largest economic force. India believes this ongoing military influence risks any reform efforts being reversed.
Despite India’s concerns, the IMF went ahead with the loan. The Finance Ministry said Pakistan’s repeated requests for help — four IMF programs since 2019 — show the failure of past measures and raise doubts about whether future loans will bring any real change.
