According to the Prime Minister’s Office of Pakistan, the International Monetary Fund (IMF) on Friday approved immediate distribution of about $ 1 billion to Pakistan under its extended fund facility. However, India claims that this action is being used to fund terrorism across the border.
The global lender reviewed the extended fund facility (EFF) loan program ($ 1 billion) and was also considering a new flexibility and stability facility (RSF) loan ($ 1.3 billion) for Pakistan. According to a statement issued by the Prime Minister’s Office of Pakistan, Prime Minister Shahbaz Sharif expressed satisfaction over the approval of one billion dollar installment and said that Pakistan’s economic situation has improved and the country is moving towards development.
What does India say?
India had earlier expressed concern over the IMF move, as Pakistan’s previous record has been poor and the loan amount is likely to be misused to fund the state -sponsored cross -border terrorism.
Under the IMF rules, India lodged their protest at the IMF board meeting and kept itself away from voting on the support package given to Pakistan. The IMF paid attention to India’s comments and its absence in voting.
UP Weather Update: Clouds will roar, lightning will shine! The chances of rains in these districts including Ghazipur-Ballia, know how the state will be
What did India tell the IMF?
India told the IMF that Pakistan is “long -term” borrower and its record of implementation and compliance of debt conditions is poor. It states that in 35 years since 1989, IMF has given loans to Pakistan for 28 years, including four loans given in the last five years, but there has been no significant improvement in them. India has also said that if this loan was successful, Pakistan would not have needed any other support package.
India has also said that deep intervention of the Pakistani Army is creating a major strategic and reform risk. According to the Indian Finance Ministry, India has expressed its views that continuously providing a constant funding to cross -border terrorism sends a dangerous message to the global community, endangering the reputation of funding agencies and donors, and also makes fun of global values.
Debt on Pakistan
In July last year, Pakistan and IMF agreed to a support package of $ 7 billion for a period of three years, under which it was said that this new program would help the country achieve widespread financial stability and create conditions for stronger, more inclusive and flexible development.
Current status between India and Pakistan
The incident took place amidst the ongoing military tension between the two neighboring countries after India’s missile attacks on “terrorist camps” in Pakistan and Pakistan occupied Kashmir. These attacks were carried out on 22 April under the retaliation of the cross -border relations developed after the terrorist attack in Pahalgam in which 26 people were killed.
Following India’s attacks in Pakistan, Islamabad has carried out missiles, artillery and drone attacks on the International Border and Line (LoC) in Jammu and Kashmir, targeting military installations in Jammu and Kashmir, Punjab and Rajasthan. These attacks have increased tension between the two neighboring countries.
