IMF Okays $1 Billion Loan to Pak: India Flags Misuse of Funds for Terrorism

India noted that Pak has received support in 28 of past 35 years, including 4 programmes in just last 5 years, without any meaningful or lasting reform

- 

NEW YORK/ISLAMABAD: The International Monetary Fund has approved the immediate disbursement of about $1 billion to Pakistan under the ongoing Extended Fund Facility.

Pointing out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, India abstained from voting at the crucial International Monetary Fund (IMF) held on Friday in Washington.

An IMF statement soon after said its Executive Board concluded the initial review of Pakistan's economic reform programme under the Extended Fund Facility (EFF) arrangement.

"This decision allows for an immediate disbursement of around $1 billion (SDR 760 million), bringing total disbursements under the arrangement to about $2.1 billion (SDR 1.52 billion)," the Washington-based global lender said.

According to the IMF, Special Drawing Rights (SDR) is an international reserve asset created to supplement the official reserves of its member countries.

In addition, the IMF Executive Board approved the authorities' request for an arrangement under the Resilience and Sustainability Facility (RSF), with access of about $1.4 billion (SDR 1 billion).