The International Monetary Fund (IMF) has approved the disbursement of $1 billion to Pakistan under its $7 billion Extended Fund Facility (EFF), following a positive first review of the country’s reform program. The IMF also cleared a separate $1.4 billion under its climate resilience fund, aimed at supporting long-term environmental and economic reforms. The Fund praised Pakistan’s recent policy measures, noting improvements in inflation control, economic stability, and investor confidence.
However, the approval has triggered regional concerns, particularly from India, which questioned Pakistan’s credibility in managing IMF funds and warned of potential misuse in support of cross-border terrorism. Pakistan’s Prime Minister Shehbaz Sharif dismissed the objections, stating that Indian attempts to disrupt the IMF deal had failed. While the funding offers crucial relief for Pakistan’s struggling $350 billion economy, the IMF cautioned that deep structural reforms are still needed to ensure long-term stability and governance.
