IMF reaffirms support for Pakistan's bailout, calls for deesclation with India
The International Monetary Fund (IMF) on Thursday reiterated that its Executive Board meeting pertaining to Pakistan's bailout programme will proceed as planned on May 9, 2025.
'As has been announced, the Board meeting for the first EFF [Extended Fund Facility] review and RSF [Resilience and Sustainable Facility] is scheduled for May 9,' said IMF spokesperson, in a statement provided to Business Recorder.
'The IMF supports Pakistan's economic program through its EFF, which is specifically designed to build reserves and help reforms aligned with the objectives of the EFF, which are to restore macroeconomic policy credibility, build resilience including through stronger buffers, and create stronger inclusive growth,' the lender said.
The comments come as the heaviest fighting in more than two decades has erupted between the two nuclear-armed neighbours, with shelling and gunfire over the frontier in Kashmir and India striking targets inside Pakistan.
At least 31 Pakistanis were martyred and dozens were injured in Indian missile attacks inside Pakistan, DG ISPR said on Wednesday. In retaliation, the Pakistan military brought down five Indian Air Force jets, including three Rafale, one MiG-21, and one SU-30, following Indian missile attacks.
In its statement, the IMF stated: 'We hope for a peaceful resolution and de-escalation between the two parties'.
Last month, the IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme.
Pending the IMF's Executive Board approval, Islamabad can unlock the $1.3 billion under a new climate resilience loan programme spanning 28 months.
It will also free $1 billion for Pakistan under the $7 billion bailout programme, which would bring those disbursements to $2 billion.
The programme is critical to the $350 billion economy, and Pakistan said it has stabilised under the bailout that helped it stave off a default threat.
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