Sat May 10 05:39:39 UTC 2025: ## India Abstains as IMF Approves $2.4 Billion Loan to Pakistan

**New Delhi, May 10, 2025** – India abstained from a vote approving a $2.4 billion International Monetary Fund (IMF) loan to Pakistan, citing concerns over Pakistan’s past performance, the potential misuse of funds for terrorism, and the IMF’s voting structure. The IMF’s Executive Board approved the funding, which comprises a $1 billion tranche of an existing $7 billion loan and an additional $1.4 billion under a separate resilience facility.

While unable to cast a negative vote under IMF rules, India voiced its reservations to the Board, highlighting Pakistan’s “poor track record” and the risk of the funds being diverted to support cross-border terrorism. The Ministry of Finance issued a statement reiterating these concerns.

India’s abstention underscores the imbalance within the IMF’s voting system, where countries like the US, Japan, and China wield significantly more voting power than India, Bangladesh, Bhutan, and Sri Lanka combined. This imbalance limits the influence of smaller member nations.

Despite India’s concerns, the IMF stated that Pakistan’s economic performance has been strong, justifying the continued financial assistance. The loan is intended to support Pakistan’s efforts in stabilizing its economy and building resilience against natural disasters.

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