Fri May 09 17:10:00 UTC 2025: ## IMF Approves $1 Billion Loan to Pakistan Despite Indian Concerns

**Islamabad, Pakistan** – The International Monetary Fund (IMF) has approved the release of a $1 billion tranche to Pakistan under its existing Extended Fund Facility (EFF), the Pakistani Prime Minister’s Office announced on Friday. Prime Minister Shehbaz Sharif hailed the decision as a defeat for India’s efforts to pressure the IMF.

This comes after India abstained from voting on the proposed $1.3 billion bailout package for Pakistan. India cited Islamabad’s “poor track record” in utilizing financial assistance and expressed concerns over Pakistan’s repeated failure to meet IMF conditions. In a May 9th meeting in Washington, India highlighted an IMF report stating Pakistan’s repeated bailouts have made it a “too-big-to-fail” borrower, further suggesting that political factors influence IMF aid decisions.

India also reiterated its concerns that financial aid to Pakistan indirectly supports its intelligence agencies and terrorist organizations like Lashkar-e-Taiba and Jaish-e-Mohammed, groups responsible for attacks on India. India’s abstention is seen as a message to the IMF and other multilateral financial institutions that providing financial aid without concrete reforms from Pakistan could pose regional security risks. Pakistan’s struggling economy is heavily reliant on IMF assistance.

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