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Friday, May 30, 2025

IMF program ‘on track,’ Pakistan rejects India’s loan inquiry

Calling it a politically motivated action amid increased regional tensions following the April 22 attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK), Pakistan has rejected India’s demand to the International Monetary Fund (IMF) to review Islamabad’s financial support program.

Confirmed on Friday by an adviser to Pakistan’s finance minister, the $7 billion IMF bailout acquired last year is still “well on track” and vital for macroeconomic stability.

In March 2025 Islamabad also got further $1.3 billion for climate resilience projects.

“This programme is not only stabilising Pakistan—it’s building confidence,” said finance adviser Khurram Schehzad. “The latest IMF review went perfectly, and our meetings with global financial institutions in Washington reflected great investor interest.”

India’s actions to pressure the IMF coincide with the two nuclear-armed neighbors imposing reciprocal suspensions on treaties, diplomatic interactions, and airspace access, so aggravating tensions after New Delhi blamed Pakistan for the Pahalgam incident without offering proof.

Islamabad has angrily refuted the charges and demanded an objective international probe.

Officials contend that India’s move to enlist the IMF is a continuation of its political campaign to diplomatically isolate Pakistan.

Neither the IMF nor the finance ministry of India have openly addressed Pakistan’s worries.

With US Vice President JD Vance encouraging both nations to avoid military escalation and collaborate in combating terrorism, the impasse has set off worldwide concern.

Pakistan says that its dedication to counterterrorism is long-standing and internationally acknowledged.

Further testing the delicate regional balance are airspace restrictions, the Indus Waters Treaty’s suspension, and tit-for-tat diplomatic expulsions.

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