Lease of Life to Terror

The IMF's controversial approval of bailout package to Pakistan amid Indo-Pak tensions reeks of geopolitical bias, and may catalyse terror and military misuse

- FR. JOHN FELIX RAJ & SOVIK MUKHERJEE

FR. JOHN FELIX RAJ IS THE VICE CHANCELLOR, AND SOVIK MUKHERJEE IS AN ASSISTANT PROFESSOR OF ECONOMICS IN THE FACULTY OF COMMERCE AND MANAGEMENT, BOTH AT ST. XAVIER'S UNIVERSITY, KOLKATA

The International Monetary Fund (IMF) has approved an immediate disbursement of USD 1 billion to Pakistan from a USD 7 billion Extended Fund Facility (EFF). Additionally, the IMF granted Pakistan's request for USD 1.4 billion, with India abstaining from the vote amid escalating cross-border tensions.

IMF's Controversial Decision This decision comes at a sensitive time, with Pakistan's military actions sparking regional concern. The timing of the IMF's announcement has drawn criticism from Indian officials, strategic experts, and others who fear it may hinder de-escalation efforts.

Given the recent Pahalgam terror attacks, many Indians find it disheartening that the IMF approved Pakistan's bailout request. The move has sparked a fierce backlash, with implications for regional dynamics.

Pakistan's Dependence on IMF's Bailout Pakistan has entered into 28 agreements with the IMF since 1958, with five deals in the last five years alone. The IMF website states that Pakistan's outstanding purchases and loans stood at SDR 6229.52 million (approximately USD 8,667 million) as of March 31, 2025.