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IMF rejects India’s objection, reaffirms support for Pakistan’s loan program

IMF expresses hope that tensions between Pakistan and India will ease
Published 08 May, 2025 08:27am
A representational image. Reuters
A representational image. Reuters

The International Monetary Fund (IMF) has rejected India’s attempts to block Pakistan’s loan program and has announced full support for Pakistan.

In a statement issued on Wednesday, the IMF confirmed that the Executive Board will meet tomorrow as scheduled to review Pakistan’s loan package.

The IMF said there is no delay or change in the meeting plan.

The organisation also expressed hope that tensions between Pakistan and India will ease.

It said it supports a peaceful solution to the ongoing conflict and stressed the importance of stability and economic development in the region.

According to Pakistan’s Ministry of Finance, the country expects approval of a $2.3 billion financing package during the meeting. This package is seen as vital for supporting the economy and restoring financial stability.

The board is also expected to approve $1.3 billion under the “Resilience and Sustainability Facility” (RSF).

Moreover, this climate financing will help Pakistan manage environmental challenges. The IMF will release the funds in installments over 28 months.

Pakistan and the IMF reached a staff-level agreement on March 25, 2025.

The final decision on the disbursement of funds will be made in the upcoming board meeting.

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