The International Monetary Fund (IMF) executive board on 8 May praised Pakistan’s performance under its ongoing program and approved the $1.3 billion loan despite India’s repeated objections over alleged misuse of funds.
The board cleared a $1.1 billion tranche under the Extended Fund Facility (EFF) along with $220 million under the Resilience and Sustainability Facility (RSF).
IMF First Deputy Managing Director Nigel Clarke reportedly termed Pakistan’s overall performance “exceptional”.
India attempted to block approval of the loan tranches, but the IMF board did not accept the argument, and the package was approved by majority vote, reported Express Tribune.
Similar attempts by India to block multilateral financing for Pakistan have also failed in other institutions.
While Pakistan’s macro indicators have improved, the IMF stressed that the real challenge is low tax compliance, weak revenue mobilisation, and heavy reliance on external financing.
The IMF further urged expansion of social protection through programs like BISP.
Despite short-term stability, the board warned that Pakistan’s long-term progress depends on widening the tax base.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
