Ahead of the IMF's crucial review meeting next week, Pakistan has criticised India's recent announcement, calling it "politically motivated". Pakistan also accuses India is politicising IMF Aid.
India plans to request the IMF to review Pakistan's financial assistance programme following the deadly Pahalgam terror attack.
The IMF Executive Board is scheduled to meet Pakistani officials on May 9 for the first review of the Extended Financing Facility (EFF) and will request an arrangement under the Flexibility and Stability Facility.
The Express Tribune said Saturday, quoting officials, that India라이브 바카라 attempt to involve the International Monetary Fund (IMF) “is an extension of its political campaign to isolate Pakistan diplomatically”.
As per the reports, India on Friday said it will be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly April 22 terror attack in Pahalgam, which killed 26 people, mostly tourists.
Pakistan has rejected the allegations and demanded an impartial international investigation.
What is the International Monetary Fund?
Founded in 1944, the International Monetary Fund (IMF) is an international organisation which promotes global economic stability and cooperation. The headquarters of the IMF is located in Washington, DC.
Currently, 190 member countries are associated with the IMF.
The IMF monitors global economics, provides policy advice to ensure financial stability, and supports sustainable growth.
It also offers loans to member countries, who are facing balance of payments crises, often with conditions to implement economic reforms. It improves governance and builds capacity through training expertise.
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IMF Loan to Pakistan
The IMF has provided several loans to Pakistan, most recently last year. According to the IMF data, at least 22 IMF loans have been granted to Pakistan.
In 1950, Pakistan joined the IMF amid fiscal difficulties.
In 1958, Pakistan became the first country to seek assistance from the IMF.
This year, Pakistan secured 25 million SDRs (Special Drawing Rights, a type of IMF reserve asset) under a Standby Agreement with the IMF.
In 1965-1968, Pakistan's government, led by Ayub Khan, worked with the IMF on two programmes.
During this, Pakistan was able to withdraw the entire amount, 112 million special drawing rights (SDRs) Special Drawing Rights.
This also marked the beginning of Pakistan's relationship with the IMF.
In 1988–1997, the Benazir Bhutto and Nawaz Sharif governments withdrew about $1.64 billion under the Special Drawing Rights (SDR) under various programmes.
In 2008, the largest loan of 7.6 billion was taken under the Yousaf Raza Gillani government.
In 2019, Imran Khan's government agreed to a $6 billion Extended Fund Facility (EFF) with the IMF, which faced difficulties because Pakistan struggled to comply with certain conditions set by the IMF.
In 2023, Pakistan received a 3 billion loan package from the IMF to help the country avoid defaulting on its debts. In agreement, Pakistan had to implement certain austerity measures, such as increasing taxes and reducing spending. After meeting these conditions, the country received another 1.2 billion upfront.
Since 1958, Pakistan has taken more than 20 loans from the IMF and is currently its fifth-largest debtor.
