IMF dismisses India’s objection, advances $2.3 billion aid plan for Pakistan

The International Monetary Fund (IMF) has declined India's request to block financial assistance to Pakistan, confirming that its Executive Board meeting scheduled for May 9 will go ahead as planned.

The decision was reported on May 3 by Pakistani Urdu language news channel Samaa.tv, per Caliber.Az.

At the upcoming session, the IMF is expected to review several financial aid requests from Pakistan, including a significant $2.3 billion assistance package. IMF spokesperson Mahir Benisi stated that the meeting would proceed without delay and that Pakistan’s funding proposals would be discussed as scheduled. Addressing India’s objections, Benisi noted that the IMF does not comment on the concerns raised by individual member countries.

Officials from Pakistan’s Ministry of Finance expressed optimism that the country will receive critical financial support. They anticipate the approval of a $1.3 billion Resilience and Sustainability Facility (RSF), intended to help address climate-related challenges, alongside an additional $1 billion top-up to Pakistan’s ongoing $7 billion Extended Fund Facility (EFF). These funds are expected to be disbursed in tranches over a 28-month period.

The IMF decision comes at a time of heightened tension between India and Pakistan following a deadly terrorist attack in the disputed region of Jammu and Kashmir. On April 22, gunmen opened fire on tourists in the Baisaran Valley near Pahalgam, killing 26 people, including 25 Hindu tourists and one Christian tourist. The Resistance Front (TRF), an offshoot of the Pakistan-based group Lashkar-e-Taiba, initially claimed responsibility. India has accused Pakistan of backing the attackers—a charge Islamabad firmly denies.

In the wake of the attack, diplomatic and economic relations between the two nuclear-armed neighbours have sharply deteriorated. India suspended the Indus Waters Treaty, a vital water-sharing agreement, and expelled Pakistani diplomats. Pakistan responded by closing its airspace to Indian aircraft, halting bilateral trade, and expelling Indian diplomats. As tensions deepen, both countries have also suspended key agreements, including the Shimla Agreement, further straining already fragile ties.

By Tamilla Hasanova