IMF Approves $1 Billion Loan Tranche for Pakistan Amid Heightened Tensions with India
The International Monetary Fund (IMF) has approved the prompt disbursement of around $1 billion to aid Pakistan’s faltering economy. Also providing crucial financial support at a time of rising regional unrest.
The IMF, headquartered in Washington, confirmed in an official statement that the latest disbursement brings the total assistance under the Extended Fund Facility (EFF) to around $2.1 billion. This latest tranche is intended to help stabilize Pakistan’s economy, which continues to chalanged significant fiscal and external challenges. (IMF Approves $1 Billion Loan Tranche for Pakistan)
A statement issued by Prime Minister Shehbaz Sharif’s office, as reported by Reuters and PTI, expressed his endorsement of the IMF’s decision and his contentment with the prompt disbursement of the funds. The statement also referenced India’s opposition to the bailout, describing it as “unsuccessful attempts to block the loan.”
India, meanwhile, raised strong objections during the IMF Executive Board meeting held on Friday. Expressing concern that the funds could be diverted to support activities threatening regional peace. India chose to abstain from the vote, thereby registering its protest without actively blocking the proposal.
These events unfold against the backdrop of rising tensions and growing conflict between the two nuclear-capable nations. For the third consecutive night, Pakistan reportedly launched drones and missile. And attacks targeting Indian cities and defence infrastructure in the western border regions.
According to Indian defence sources, multiple Pakistani drones were detected over Jammu and Kashmir, Rajasthan, and Punjab. The Indian armed forces have responded by intercepting and neutralizing these threats using advanced air defence systems.
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Civilian Casualties Reported Amid Drone Attacks
Three civilians were injured on Friday in Ferozepur, Punjab, after a drone strike hit a residential neighborhood. Similar incidents were reported on the preceding two nights, intensifying concerns over the rapidly deteriorating security situation.
India’s Ministry of Defence stated that the country’s air defence capabilities Including the Akash missile system and the counter-unmanned aerial system (C-UAS), have effectively intercepted most incoming threats.
India’s Objection to IMF Disbursement
India has reiterated its longstanding concerns that international financial support to Pakistan could potentially be misused, particularly to finance state-backed terrorism. New Delhi’s resistance to the IMF loan package, especially the $1.3 billion under the proposed Resilience and Sustainability Facility, stems from fears that such funds could indirectly enable cross-border militancy.
Tensions were further inflamed following the April 22 terrorist attack in Pahalgam, Jammu and Kashmir Which claimed 26 lives, including several civilians. The attack was claimed by The Resistance Front, believed to be a front for the Pakistan-based Lashkar-e-Taiba (LeT) group.
India’s Countermeasures and Global Diplomacy
In response to the terror strike, India launched a series of retaliatory steps. Non-military sanctions were followed by “Operation Sindoor” in the early hours of Wednesday. During which Indian forces reportedly destroyed nine terror camps located in Pakistan and Pakistan-occupied Kashmir.
On the international front, India has been pressing its case at the United Nations. Urging action against Pakistan for allegedly allowing terror groups like LeT to operate from within its borders. These allegations have drawn support from several global actors concerned about South Asia’s stability.
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