The IMF rejected India’s attempt to block financial assistance to Pakistan and confirmed that its Executive Board will meet on May 9.
They will discuss Islamabad’s $2.3 billion aid request. Spokesperson Mahir Benisi reaffirmed the fund’s neutrality.
He stated, “We cannot comment on other nation’s concerns,” and dismissed any delay in the critical meeting.
Pakistan expects approval of two key packages, a $1.3 billion climate-focused Resilience and Sustainability Facility (RSF) and a $1 billion portion under its existing $7 billion Extended Fund Facility.
Finance Ministry officials stressed the urgency of the RSF for climate-vulnerable Pakistan, noting that disbursements will take place over 28 months, following the staff agreement reached in March.
The decision follows rising India-Pakistan tensions after the Pahalgam attack. New Delhi persuaded the IMF to reconsider the aid package, but failed.
As Islamabad has already dismissed India’s allegations of involvement in the Kashmir incident as baseless.
Pakistan’s economic team expressed confidence despite these geopolitical tensions, pointing to productive spring meetings with international investors.
Officials expect the next few days to strengthen Pakistan’s stabilization efforts under the 2024 bailout program.