IMF Rejects India’s Request to Halt Pakistan’s Financial Assistance

The International Monetary Fund (IMF) has turned down India’s request to halt Pakistan’s financial assistance, confirming that the Executive Board meeting on May 9 will proceed as planned to discuss Pakistan’s aid requests.

IMF spokesperson Mahir Benisi confirmed that the scheduled meeting would take place, emphasizing that the IMF does not comment on concerns raised by individual countries. Pakistan’s Ministry of Finance remains confident that the meeting will approve a crucial $2.3 billion aid package, including a $1.3 billion Resilience and Sustainability Facility (RSF) to address climate change, along with a $1 billion addition to the $7 billion Extended Fund Facility (EFF) program.

The RSF aims to help Pakistan strengthen its climate resilience, with the first installment expected shortly after the meeting. India’s request to review Pakistan’s loans, linked to recent tensions over the Pahalgam attack in Kashmir, has drawn international attention. India accuses Pakistan of involvement in the attack, a claim Islamabad denies.

Despite the geopolitical tensions, Khurram Shahzad, an advisor to Pakistan’s Finance Minister, assured that the IMF program remains on track. Pakistan continues to rely on international financial support to stabilize its economy, which has shown signs of improvement under the IMF program.

The IMF’s decision to proceed with Pakistan’s financial aid underscores the importance of economic stability in the region despite ongoing political strains.