IMF Approves Loan to Pakistan; India Abstains Over Past Concerns

### Swift Summary
– India abstained from voting on IMF’s $2.3 billion loan package to Pakistan, citing concerns over Pakistan’s poor track record in implementing IMF conditions and the risk of misuse for state-sponsored cross-border terrorism.
– The loan package includes a $1 billion Extended Fund Facility (EFF) and a $1.3 billion Resilience and Sustainability Facility (RSF).
– Due to procedural constraints, India could not vote “no” but used its abstention to formally express strong dissent about IMF policies involving Pakistan.
– India’s objections focused on reputational risks for financial agencies,misuse of fungible funds,and the reinforcement of global values in lending practices.
– India flagged Pakistan’s reliance on repeated IMF bailouts-28 out of the last 35 years-and raised doubts about the effectiveness of IMF program designs when applied to Pakistan.
– Concerns where raised over Pakistani military influence in economic policies, even under civilian governance, contributing to policy slippages and hindering reforms.

—

### Indian Opinion Analysis
India’s abstention reflects growing disapproval toward international financial support being extended without adequate safeguards or oversight mechanisms for accountability. While India’s opposition highlighted significant flaws in governance within Pakistan-including those tied to military interference-it also served as an indirect critique of global institutions that prioritize technicalities over potential geopolitical consequences or ethical standards.

The observation regarding “prolonged borrowing” underscores systemic inefficiencies both within recipient states like Pakistan and donor organizations such as the IMF when dealing with such nations repeatedly reliant on bailouts without sustained improvements. India’s call for structural introspection by multilateral bodies could encourage conversations around recalibrating lending practices with stricter monitoring criteria tailored toward economic stability rather than temporary relief.

This situation carries broader implications beyond bilateral tensions between India and Pakistan-it questions global adherence by major financial agencies toward principles that safeguard against possible diversion of funds contributing to terrorism activities-a matter inherently tied into peacekeeping efforts globally.

[Read More](https://timesofindia.indiatimes.com/india/imf-clears-loan-to-pakistan-india-abstains-citing-its-poor-record/articleshow/121041716.cms)