IMF Grants $2.3 Billion to Pakistan Despite India Revolts

On May 9, 2025, the International Monetary Fund (IMF) approved a $2.3 billion financial assistance package for Pakistan, comprising a $1 billion disbursement under the Extended Fund Facility (EFF) and a new $1.3 billion loan through the Resilience and Sustainability Facility (RSF) to support climate resilience initiatives.

This decision was made despite India’s objections, which cited concerns over potential misuse of funds for cross-border terrorism following recent escalations between the two nations. The International Monetary Fund proceeded with the approval, emphasizing Pakistan’s progress in economic stabilization and policy reforms. Prime Minister Shehbaz Sharif hailed the IMF’s decision as a diplomatic success, asserting that India’s attempts to derail the funding had failed.

On May 9, the IMF approved $2.3 billion in funding for Pakistan—$1 billion under the Extended Fund Facility (EFF) and $1.3 billion through the Resilience and Sustainability Facility (RSF)—despite India’s attempt to block the move. The decision followed successful reform talks and a staff-level agreement in March 2025. The IMF praised Pakistan’s fiscal improvements and emphasized the program’s focus on economic stabilization, climate resilience, and structural reforms to promote sustainable, private-sector-led growth.