The IMF's recent approval of over $2.1 billion in financial aid to Pakistan—just days after a deadly terrorist attack in Pahalgam, Kashmir, and amid rising military tensions with India—has sparked intense international backlash, with critics accusing the Fund of enabling instability in South Asia.
Key Highlights:
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$1 Billion Disbursed Under EFF:The International Monetary Fund approved a $1 billion disbursement under the Extended Fund Facility (EFF) for Pakistan on Friday. This brought the total amount disbursed under the programme to $2.1 billion.
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$1.4 Billion Cleared Under RSF:Additionally, $1.4 billion was sanctioned under the Resilience and Sustainability Facility (RSF), officially intended to help Pakistan cope with climate vulnerabilities. However, critics argue that the money could be misused or diverted.
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India Abstains, Issues Strong Protest:India abstained from the IMF Executive Board vote, signaling deep opposition within the limits of IMF protocol, which allows only affirmative votes or abstentions.In a strongly worded statement, India’s Finance Ministry said:“The Fund’s processes lacked moral safeguards,”warning that fungible inflows from multilateral institutions could be diverted to fund terrorism or military operations.
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Support From Other Countries:India noted that its concerns were shared by other IMF members, pointing to growing unease within the global community over Pakistan’s misuse of international aid.
Criticism from Indian and Global Experts:
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Kanwal Sibal, former Indian Foreign Secretary, called the decision “terrible optics”, and criticized the IMF for lacking accountability and being tilted in favor of Western powers.
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Yashwant Deshmukh, psephologist, bluntly stated the IMF “has blood on its hands.”
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Sushant Sareen of the Observer Research Foundation accused the IMF of emboldening Pakistan’s military, rather than pressing for meaningful reforms.
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J&K Chief Minister Omar Abdullah questioned the international community’s logic:
“How can de-escalation be expected when the IMF is essentially reimbursing Pakistan for attacks on Indian cities?”
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Mariam Solaimankhil, former Afghan MP in exile, said the IMF was not rescuing an economy but rather “bankrolling bloodshed.” She added,
“How long will the world pay Pakistan to kill?”
Historical Context:
India has long argued that Pakistan abuses multilateral funding. Over the past 35 years, Pakistan has joined 28 IMF programmes, including four in the last five years—with little economic reform, persistent military dominance, and continued terror activity.
The IMF has not issued a formal response to these criticisms as of now. However, the timing of its disbursement has cast a shadow over its credibility and neutrality, especially amid rising hostilities in the region.
