Washington, D.C. — The International Monetary Fund (IMF) executive board has approved a new $1.4 billion loan to Pakistan under its Resilience and Sustainability Facility (RSF), aimed at strengthening the country’s climate resilience. Simultaneously, the board completed the first review of Pakistan’s ongoing $7 billion Extended Fund Facility (EFF), freeing up an additional $1 billion in immediate financial support.
RELATED NEWS : India-Pakistan Conflicts : Terror Attack and Rising Tensions Threaten the Dream of the Asian Century
The IMF praised Pakistan’s recent economic reforms and stabilization efforts, stating:
“Pakistan’s policy efforts under the program have already delivered significant progress in stabilizing the economy and rebuilding confidence, amidst a challenging global environment.”
The approvals come as a major financial boost for Pakistan, which is grappling with mounting climate threats and economic headwinds, including high inflation, fiscal pressures, and external financing gaps.
Shehbaz: “India’s sabotage attempt failed”
Reacting to the development, Prime Minister Muhammad Shehbaz Sharif said in a statement that “India’s attempts to sabotage the IMF program have failed.” He emphasized that the staff-level agreements on both programs — the climate resilience loan and the EFF review — were finalized before the current rise in hostilities between India and Pakistan.
The statement is seen as a direct response to India’s objections raised during the IMF board’s deliberations, where Indian representatives voiced concerns about potential misuse of the funds, especially in light of recent cross-border tensions.
Critical support amid uncertainty
The $1.4 billion climate loan under the RSF is designed to help Pakistan better prepare for and adapt to climate-related disasters, while the $1 billion released from the EFF will support macroeconomic stabilization and fiscal reforms. The dual disbursement is expected to strengthen Pakistan’s credibility with international lenders and provide a cushion for its fragile economy.
As regional tensions continue to simmer, the IMF’s backing underscores the importance of keeping economic cooperation distinct from geopolitical disputes.
SOURCE : AGENCIES | Follow Us: Facebook | Instagram | Twitter | Youtube
