Washington: The International Monetary Fund (IMF) has firmly defended its recent $1 billion bailout to Pakistan, countering objections raised by India by stating that Islamabad has fulfilled all required conditions under its ongoing financial assistance programme.
In a press briefing, IMF’s Communications Director Julie Kozack clarified that the funds were released after Pakistan met the structural benchmarks and targets agreed upon under the Extended Fund Facility (EFF).
“Our Board found that Pakistan had indeed met all of the targets. It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program,” Kozack told reporters.
The latest disbursement is part of a broader $3 billion package approved in September 2024, of which Pakistan has now received approximately $2.1 billion. The bailout is aimed at helping Pakistan stabilize its faltering economy amid soaring inflation, dwindling foreign reserves, and a mounting debt crisis.
“The first review was planned for the first quarter of 2025. And consistent with that timeline, on March 25 of 2025, the IMF staff and the Pakistani authorities reached a staff-level agreement on the first review for the EFF. That agreement…was then presented to our Executive Board, which completed the review on May 9. As a result, Pakistan received the disbursement at that time,” Kozack elaborated.
The disbursement comes amid rising geopolitical tensions between India and Pakistan, with New Delhi expressing its reservations over international financial institutions supporting Islamabad despite continued regional instability.
However, IMF officials have clarified that the programme is purely economic in nature and based on compliance with agreed fiscal and reform benchmarks.
According to reports, the IMF has also imposed 11 new conditions for the next tranche, including parliamentary approval for fiscal decisions, an increase in electricity debt-servicing surcharge, and the lifting of import restrictions.
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