India Abstains From Voting on IMF Bailout Package to Pak

Expresses concern that Islamabad may misuse funds to sponsor cross-border terrorism

- JITENDRA CHOUBEY @ New Delhi

AMID the ongoing geopolitical tension between the two countries, India on Friday abstained from voting on the extension of a proposed $1.3 billion loan to Pakistan, as it raised concerns over the efficacy of the IMF bailout package, given the country's poor track record. India expressed concern that Pakistan might misuse the debt to fund state-sponsored cross-border terrorism.

The International Monetary Fund (IMF) on Friday reviewed the Extended Fund Facility lending programme ($1 billion) and also considered a fresh Resilience and Sustainability Facility lending programme ($1.3 billion) for Pakistan.

Presenting its case against another bailout package to Pakistan, India contended that its neighbor has been a prolonged borrower from the IMF, with a very poor track record of implementation and adherence to the programme conditions. India pointed out that such track record calls into question either the effectiveness of the IMF programme in case of Pakistan or their monitoring and implementation by Pakistan.