Islamabad (TDI): The International Monetary Fund (IMF) has firmly dismissed India’s request to delay or halt financial assistance to Pakistan, confirming that its Executive Board will proceed with the scheduled meeting on May 9, 2025.
The meeting is set to consider Pakistan’s urgent financial aid package, which includes a significant $2.3 billion in support.
The financial package under review includes $1.3 billion under the Resilience and Sustainability Facility (RSF), intended to help Pakistan manage growing climate change challenges. An additional $1 billion is proposed to be added to the ongoing $7 billion Extended Fund Facility (EFF), which has been crucial in stabilizing Pakistan’s economy. If approved, the funds will be disbursed over a 28-month period.
Pakistan’s Ministry of Finance is confident about positive and favorable outcomes from the upcoming meeting. Officials highlight that the IMF’s staff-level agreement for the RSF was already signed on March 25, 2025, signaling a strong commitment from the Fund.
Read More: Pakistan to Seek Economic, Climate Support at IMF, WB Talks
India’s objection stems from heightened diplomatic tensions following the deadly Pahalgam attack on April 22, in Indian Illegally Occupied Kashmir, where 26 people lost their lives. India has blamed Pakistan for involvement in the attack—allegations Islamabad strongly denies. In response, India urged the IMF to reconsider its support to Pakistan.
A government source from New Delhi told Reuters that India formally requested a review of the loans, though specific objections were not disclosed publicly.
Despite the pressure, the IMF’s decision to proceed indicates its focus on economic and developmental imperatives rather than regional political disputes. Khurram Shahzad, an advisor to Pakistan’s Finance Minister, reaffirmed that the IMF program is on track.
Read More: IMF to Decide on $1.3bn Pakistan Bailout on May 9
“The latest review has been completed successfully, and we are moving forward as planned,” Shahzad stated, adding that Pakistan conducted over seventy meetings with financial institutions during recent spring sessions, in Washington.
Amid worsening India-Pakistan relations—including airspace closures and the suspension of the Indus Waters Treaty—the IMF’s commitment to Pakistan sends a strong signal of support for economic stability and climate resilience in the region.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
