The International Monetary Fund (IMF) has defended its decision to grant Pakistan a $1 billion bailout, even after objections raised by India. The IMF said Pakistan fulfilled all the necessary requirements to receive this part of the loan.

This loan is part of a bigger financial support package for Pakistan, which is facing serious debt problems. Under the Extended Fund Facility (EFF) that started in September 2024, Pakistan has received around $2.1 billion so far.

IMF says Pakistan is on track

Julie Kozack, the IMF's Communications Director, explained the decision during a press briefing. She said,

"Our Board found that Pakistan had indeed met all of the targets. It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program."

She also noted that the first program review was set for early 2025.

“On March 25, 2025, IMF staff and Pakistani authorities reached a staff-level agreement. That agreement was then approved by our Executive Board on May 9, and the disbursement followed,” Kozack added.

The International Monetary Fund (IMF) is made up of 190 member countries. Each country is represented on the IMF’s executive board, with voting power based on its financial contribution, meaning the world’s most economically powerful countries hold the most influence.