IMF’s $2.4 Billion Pakistan Loan: Funding Terrorism or Economic Stability?
The IMF approved $2.4 billion in financing for Pakistan, comprised of a $1 billion disbursement under its Extended Fund Facility (EFF) and $1.4 billion from the Resilience and Sustainability Facility (RSF). This follows a successful first review of Pakistan’s EFF program, demonstrating progress in macroeconomic stability despite ongoing challenges. India abstained from the vote, expressing concerns about Pakistan’s track record of implementing IMF programs and the potential misuse of funds for terrorism. The EFF will support continued fiscal reforms and private sector growth, while the RSF focuses on bolstering climate resilience.
John Q. Hosedrinker