The International Monetary Fund (IMF) on Friday, May 9 reviewed the Extended Fund Facility (EFF) lending program ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending program ($1.3 billion) for Pakistan. India abstained from the IMF vote on Pakistan’s loan programs, citing terrorism concerns.
In an official release Government of India said, “as an active and responsible member country, India raised concerns over the efficacy of IMF programs in case of Pakistan, given its poor track record, and also on the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism.”
India said, “Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF’s program conditions. In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 years. In the last 5 years since 2019, there have been 4 IMF programs. Had the previous programs succeeded in putting in place a sound macroeconomic policy environment, Pakistan would not have approached the Fund for yet another bail-out program. India pointed out that such a track record calls into question either the effectiveness of the IMF program designs in case of Pakistan or their monitoring or their implementation by Pakistan.”
India also remarked, “”A 2021 UN report described military-linked businesses as the “largest conglomerate in Pakistan”. The situation has not changed for the better; rather, the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan.”
What Else Did The India Said?
India also highlighted the terror links of Pakistan. India said, “India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.”
India said that the funds released by the IMF in the favour of Pakistan can be misused for military and state sponsored cross border terrorist purposes.
“The International Monetary Fund (IMF) took note of India’s statements and its abstention from the vote,” read the official press statement.
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