‘India’s sole alternative on IMF fund to Pak. was abstention’

• The IMF Executive Board approved $2.4 billion funding to Pakistan across two programs.

• India abstained from the vote due to concerns about Pakistan’s poor track record, potential use for state-sponsored terrorism, and the IMF’s procedural and technical formalities.

• The $2.4 billion is part of a larger $7 billion Extended Fund Facility (EFF) extended to Pakistan in September 2025.

• The additional $1.4 billion is under a Resilience and Sustainability Facility (RSF).

• India’s grievances were hampered by the lack of a “no” vote provision in the decision.

• The voting system incorporates an imbalance, with each country not having an equal vote.

• The IMF noted Pakistan’s policy efforts under the EFF have made significant progress in stabilising the economy and its fiscal performance has been “strong”, allowing it to meet the GDP target of 2.1% by the end of this year.