The International Monetary Fund (IMF) has approved the first review of its ongoing $7 billion Extended Fund Facility (EFF) program with Pakistan, which has provided Pakistan with an immediate loan installment of $1 billion. Earlier, the IMF also extended a new loan of $1.3 billion to Pakistan, bringing the total aid amount to $2.3 billion.
India’s objection and distance from voting
India has distanced itself from voting in this decision-making process of the IMF and has expressed serious concern over the financial assistance being given to Pakistan. India says that Pakistan’s record against terrorism has been poor and the funds received from the IMF may be misused. India has also alleged that Pakistan has not complied with the terms of previous IMF programmes, which has not improved its economic situation.
Pakistan’s response
Pakistani Prime Minister Shehbaz Sharif has expressed his satisfaction over this approval of the IMF and described it as an important step towards the economic stability of the country. Rejecting India’s objections, he said that Pakistan is complying with IMF conditions and is committed to economic reforms. This financial assistance to Pakistan comes at a time when tensions with India have increased after a terrorist attack in Kashmir. India has blamed Pakistan for the attack, while Pakistan has denied the allegations.