IMF approves $1 billion disbursement to Pakistan, says PM Shehbaz Sharif's office

The decision comes after New Delhi had asked the IMF to review its loans to Pakistan citing its continued support for cross border terrorism against India

Updated on: May 10, 2025, 09:04:05 IST

By HT News Desk

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The Pakistan government on Friday said the International Monetary Fund's (IMF) executive board approved the first review of its $7 billion program, freeing $1 billion in cash for the country locked in a conflict with India over the April 22 Pahalgam terror attack.

Pakistan's Prime Minister Office claimed that the country's economic situation has "improved" and "moving towards development". (AFP file)

“Prime Minister Muhammad Shehbaz Sharif expresses satisfaction over the approval of a $1 billion tranche by the International Monetary Fund (IMF) for Pakistan,” the Prime Minister Office (PMO) office said in a statement.

Also read | India looks to undercut Pakistan on world stage

The latest approval brings the total disbursements to $2 billion within the $7 billion program. The latest sanction comes after New Delhi had asked the IMF to review its loans to Pakistan, citing its continued support for cross-border terrorism against India.

Reuters reported that the staff-level agreement for the bailout program was reached between the IMF and the Pakistani government before tensions escalated between New Delhi and Islamabad. The global body did not respond to the agency's request for a comment after the approval.

India on bailout for Pakistan

Before the approval, India on Friday opposed the IMF proposal to extend fresh loans of USD 2.3 billion to Pakistan, saying they could be misused for financing state-sponsored cross-border terrorism.

Also read | IMF approves $7 billion loan as Pakistan faces economic losses

The Union government registered its protest at the board of IMF, which met on Friday to review the Extended Fund Facility (EFF) lending programme (USD 1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme (USD 1.3 billion) for Pakistan.

A statement by the Centre said that, “India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values. While the concern that fungible inflows from international financial institutions, like IMF, could be misused for military and state sponsored cross border terrorist purposes.”

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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