IMF Justifies Loan To Pakistan After Pahalgam Terror Attack, Says It Had Met Necessary Targets

In a media briefing on Thursday (22 May), the International Monetary Fund (IMF) justified its decision to grant a bailout package to Pakistan days after terrorists backed by that country killed 26 civilians in Pahalgam.

Pakistan secured $2.1 billion in two installments through the IMF's Extended Fund Facility (EFF) as part of a $7 billion deal inked last year.

As per a report by NDTV, Julie Kozack, the director of the IMF's communications department said, "Our Board found that Pakistan had indeed met all of the targets. It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program."

Explaining further, she said, "The first review was planned for the first quarter of 2025. And consistent with that timeline, on 25 March of 2025, the IMF staff and the Pakistani authorities reached a staff-level agreement on the first review for the EFF. That agreement, that staff-level agreement, was then presented to our Executive Board, which completed the review on 9 May. As a result, Pakistan received the disbursement at that time."

India had conveyed its objections before the review, citing Pakistan's continued support for cross-border terrorism. Commenting on the package, Defence Minister Rajnath Singh stated that it was indirect form of supporting terror.

Speaking about the conflict between India and Pakistan, Kozack stated, "With respect to Pakistan and the conflict with India, I want to start here by first expressing our regrets and sympathies for the loss of life and for the human toll from the recent conflict. We do hope for a peaceful resolution of the conflict."