Overview

• The IMF Executive Board approved a $1 billion disbursement to Pakistan under its Extended Fund Facility, raising total payouts to $2.1 billion within the program.
• India abstained from the vote, warning that IMF funds could be diverted to support state-sponsored cross-border terrorism and highlighting Pakistan's repeated borrowing history with limited reform outcomes.
• India raised concerns over the Pakistan military's dominant role in economic decision-making, citing risks of policy slippages and undermined civilian oversight.
• The IMF acknowledged India's objections but stated its decision was constrained by procedural formalities, with several member countries echoing similar concerns.
• Pakistan's Prime Minister Shehbaz Sharif welcomed the decision, dismissing India's stance as ineffective, while tensions between the two nations escalate following a recent terror attack in Kashmir.