The IMF’s data shows that, since 1958, Pakistan had availed 24 loan facilities from the IMF and that the $1.3 billion Resilience and Sustainability Facility would be the 25th. 
| Photo Credit: Reuters

India on Friday (May 9, 2025) announced that it had raised concerns in the International Monetary Fund (IMF) about the efficacy of its funding to Pakistan. India also said it had abstained from the vote to provide additional funding to the cash-strapped country, citing Pakistan’s “poor track record” and the fact that the IMF is bound by “procedural and technical formalities”.

The Executive Board of the IMF met on Friday (May 9, 2025) to vote on disbursing $1 billion out of a total $7 billion Extended Fund Facility (EFF) to Pakistan and to extend a further $1.3 billion to the cash-strapped nation as a Resilience and Sustainability Facility (RSF). 

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“As an active and responsible member country, India raised concerns over the efficacy of IMF programs in case of Pakistan given its poor track record, and also on the possibility of misuse of debt financing funds for state sponsored cross border terrorism,” the Ministry of Finance (MoF) said in a statement.

The Congress party was quick to criticise the Government over its decision to abstain, saying that India had “chickened out”.

“On April 29th, the INC had demanded that India vote against the IMF loan to Pakistan, which was considered today by its Executive Board,” the Congress’ General Secretary in-charge of Communications Jairam Ramesh posted on X. “India has only abstained from the vote. The Modi Government has chickened out. A strong NO would have sent a powerful signal.”

The MoF statement pointed out that Pakistan has been a “prolonged borrower” from the IMF, with a “very poor track record” of implementation and of adherence to the IMF’s program conditions. 

“In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 years,” it said. “In the last 5 years, since 2019, there have been four IMF programs. Had the previous programs succeeded in putting in place a sound macroeconomic policy environment, Pakistan would not have approached the Fund for yet another bailout program.” 

The IMF’s data shows that, since 1958, Pakistan has availed 24 loan facilities from the IMF and that the $1.3 billion RSF would be the 25th. 

“India pointed out that such a track record calls into question either the effectiveness of the IMF program designs in case of Pakistan or their monitoring or their implementation by Pakistan,” India’s statement added.

India also highlighted the fact that the IMF’s funding of Pakistan through loans was creating a situation where Pakistan was becoming too big a debtor for the IMF to allow to fail.

“India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values,” the statement said. 

It added that while its concerns that funds from international financial institutions such as the IMF to Pakistan could be misused for military and state sponsored cross-border terrorist purposes resonated with several member countries, “the IMF response is circumscribed by procedural and technical formalities”. 

“This is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions,” the statement said, adding that the IMF took note of India’s statement and its abstention from the vote.