Fri May 09 21:47:25 UTC 2025: ## IMF Approves $1 Billion Loan to Pakistan Amidst Indian Objections
**New Delhi, India –** The International Monetary Fund (IMF) has approved a $1 billion disbursement to Pakistan as part of an ongoing loan program, despite strong objections from India. The loan, part of a larger $7 billion package, comes amidst heightened tensions between the two nations following a recent terrorist attack in Kashmir that killed 26 people.
India vehemently opposed the loan, citing Pakistan’s poor track record with IMF programs and concerns that the funds could be misused to finance state-sponsored cross-border terrorism. The Indian government abstained from voting on the measure at the IMF’s Executive Board meeting. A statement from India’s Finance Ministry highlighted the risk of funding terrorism and criticized the Pakistan military’s significant influence on economic policy.
Pakistan, however, welcomed the IMF’s decision, with Prime Minister Shehbaz Sharif expressing satisfaction and dismissing India’s objections as a conspiracy to undermine Pakistan’s economic progress. The Pakistani government highlighted recent positive economic indicators and asserted that the IMF program will help stabilize the economy.
The IMF’s approval also includes a separate $1.4 billion loan under the Resilience and Sustainability Facility, aimed at bolstering Pakistan’s resilience to natural disasters and economic shocks. While acknowledging elevated risks to Pakistan’s outlook, the IMF proceeded with the disbursement. The situation underscores the ongoing geopolitical tensions in the region and the complex interplay between international finance and political conflicts.
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