- Says unused disbursement for soldiers or the budget.
- Structural reforms and guarantees in place.
- Impact of noted conflict; Peace has urged.
The International Monetary Fund (IMF) defended its recent disbursement in Pakistan on Thursday under prolonged funds (EFF), rejecting Indian concerns that bailout could be used in the wrong escient by Islamabad.
The IMF board of directors approved a new $ 1.4 billion loan in Pakistan on May 9, on May 9, and approved the first $ 7 billion examination, releasing about 1 billion dollars in cash.
Addressing a supplier, IMF spokesperson Julie Kozack said: “The board of directors approved the disbursement after having noted that Pakistan had achieved all performance objectives and makes progress in structural reforms.”
She pointed out that the IMF funds are only aimed at solving payments balance problems and are channeled towards the central bank, not used for budgetary or military financing.
“There are also strict guarantees in place,” said Kozack, highlighting conditionalities, including a zero limit for central bank loans to the government and the emphasis placed on the strengthening of budget management.
Answering questions about India’s objection and the abolition of its executive director of the fund, Kozack refused to comment, claiming that these appointments are the prerogative of individual member states.
India had asked the IMF a broader examination of its loans in Pakistan, while the tension is based between nuclear neighbors.
An attack in April against tourists illegally occupied Jammu-et-Cachemire (IIOJK) killed 26 and sparked the worst battles between Pakistan and India in almost three decades.
At the end of his briefing, Kozack expressed condolences for lost life in recent tensions between Pakistan and India and called for a peaceful resolution.
The approval of the May 9 exam brings the disbursements to $ 2 billion in the $ 7 billion program. No money from the loan of resilience was immediately available.
“Pakistan’s political efforts in the (program) have already made significant progress in stabilization of the economy and the reconstruction of confidence, in the midst of a difficult global environment,” the IMF said in a statement according to approval.
Meanwhile, a main source of government in New Delhi said Reuters On Friday, India would push the Financial Action Task Force (FATF), a global security dog of financial crime, to restore Pakistan to the RAP-Rival to its “gray list” and to oppose the upcoming funding of the World Bank in Islamabad.
The source said that India would not miss any opportunity “to oppose Pakistan and that the next one is the funding of the World Bank, and we will increase our protest there.”
The Pakistan Ministry of Finance did not immediately respond to a request for comments. Pakistan denied any hand in the attack on the cashmere and said that India’s decision to maintain the Suspension Water Treaty is an act of war.
Pakistan was withdrawn from the Fatf gray list in 2022, which gave it its own health assessment on terrorist funding and stimulating its reputation among lenders, essential to the economy of Pakistan with crisis.