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India Gazette
10-05-2025
- Business
- India Gazette
Gaurav Gogoi slams IMF over USD 1 billion loan to Pakistan, says it will
New Delhi [India], May 10 (ANI): Congress MP Gaurav Gogoi slammed the International Monetary Fund's (IMF) approval of a USD 1 billion loan to Pakistan, terming it 'shocking' and 'disappointing'. Gogoi added that the IMF consists of 25 country board, including nations such as US, Japan, Australia, Germany, France, UK, Italy and Israel. He believed that the loan would be used to perpetuate the rule of the army over Pakistan. 'The IMF Board comprises of 25 member countries such as US, Japan, Australia, Germany, France, UK, Italy and Israel. The approval of $1 billion loan after the Pakistan-sponsored Pahalgam attack is shocking and disappointing. The loan will only perpetuate the rule of the army over the state,' Gaurav Gogoi's 'X' post said. Earlier, Jammu and Kashmir Chief Minister Omar Abdullah slammed IMF's decision to go ahead and fund Pakistan. The J&K CM decried that the reimbursement from IMF is being used to target several places across Jammu and Kashmir. In a post on X, CM Abdullah gave a call to the international community and said that giving funds to Pakistan would not result in de-escalation but woud rather embolden its actions to continue with devastations across places such as Poonch, Rajouri, Uri and Tangdhar along with several others. He wrote on X, 'I'm not sure how the 'International Community' thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar and so many other places.' On Friday, IMF approved the first review of Pakistan's economic reform programme under the Extended Fund Facility (EFF), enabling a disbursement of approximately USD 1 billion. India, however, firmly opposed providing funds to a country that continues to sponsor cross-border terrorism, warning that such support carries reputational risks for global institutions and undermines international norms. In a post on X, the IMF said, 'IMF Board approved the first review of Pakistan's economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong programme implementation which has contributed to continuing economic recovery.' India abstained from the recent IMF vote on approving a loan to Pakistan, not due to a lack of opposition, but because IMF rules do not permit a formal 'no' vote, sources added. (ANI)
India.com
10-05-2025
- Business
- India.com
Omar Abdullah slams IMF over reimbursing Pakistan, says money being used for devastating…
Jammu and Kashmir Chief Minister Omar Abdullah criticized the International Monetary Fund (IMF) for its decision to continue funding Pakistan. He condemned the move, alleging that IMF reimbursements are being utilized to target various areas across Jammu and Kashmir. In a post on X, CM Abdullah gave a call to the international community and said that giving funds to Pakistan would not result in de-escalation but woud rather embolden its actions to continue with devastations across places such as Poonch, Rajouri, Uri and Tangdhar along with several others. He wrote on X, 'I'm not sure how the 'International Community' thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places.' I'm not sure how the 'International Community' thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places. — Omar Abdullah (@OmarAbdullah) May 10, 2025 His remarks come after the International Monetary Fund approved the first review of Pakistan's economic reform program under the Extended Fund Facility (EFF), enabling a disbursement of approximately USD 1 billion. India, however, firmly opposed providing funds to a country that continues to sponsor cross-border terrorism, warning that such support carries reputational risks for global institutions and undermines international norms. In a post on X, the IMF said, 'IMF Board approved the first review of Pakistan's economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong program implementation which has contributed to continuing economic recovery.' India abstained from the recent IMF vote on approving a loan to Pakistan, not due to a lack of opposition, but because IMF rules do not permit a formal 'no' vote, sources added. Further, New Delhi conveyed its strong dissent within the constraints of the IMF's voting system and used the opportunity to record its objections formally. India's key objections included: India also questioned the effectiveness of ongoing IMF assistance, noting that Pakistan has received support in 28 of the past 35 years including four programs in just the last five without meaningful or lasting reform and highlighted the Pakistani military's continued dominance in economic affairs, which undermines transparency, civilian oversight, and sustainable reform. In its official statement, India raised significant concerns regarding Pakistan's track record with previous IMF loans and the potential misuse of funds for 'state-sponsored cross-border terrorism. 'India's concerns extended beyond economic considerations to governance issues, particularly the role of Pakistan's military in economic affairs. The statement pointed out that 'Pakistan military's deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms.' It referenced a 2021 UN report that described military-linked businesses as the 'largest conglomerate in Pakistan' and noted the army's current leading role in Pakistan's Special Investment Facilitation Council. Earlier today, CM Omar Abdullah expressed grief on the demise of J&K Administration Services officer Raj Kumar Thappa. The J-K CM offered his condolences to Thappa who lost his life after his home was targeted due to shelling from Pakistan in Rajouri. Pakistan carried out cross-border shelling on Saturday, causing significant damage to civilian areas in Jammu's Rajouri district and heightening fears among residents. A series of explosions damaged several houses and properties across the region, triggering panic among residents. India launched the retaliatory strikes immediately after Pakistan attacked 26 locations across India on Saturday, the sources told ANI. Intermittent firing is still going on at several places along the Line of Control (LoC). At least four airbases in Pakistan were hit by Indian strikes in the early hours of Saturday, top government sources said, as tensions between the two countries continue to escalate. Drones have been sighted at 26 locations along the International Border and LoC with Pakistan. These include suspected armed drones. The locations include Baramulla, Srinagar, Avantipora, Nagrota, Jammu, Ferozpur, Pathankot, Fazilka, Lalgarh Jatta, Jaisalmer, Barmer, Bhuj, Kuarbet and Lakhi Nala. Regrettably, an armed drone targeted a civilian area in Ferozpur, resulting in injuries to members of a local family. The injured have been provided medical assistance, and security forces have sanitised the area. The Indian Armed Forces are maintaining a high state of alert, and all such aerial threats are being tracked and engaged using counter-drone systems. The situation is under close and constant watch & prompt action is being taken wherever necessary. Citizens, especially in border areas, are advised to remain indoors, limit unnecessary movement, and strictly follow safety instructions issued by local authorities. While there is no need for panic, heightened vigilance and precaution are essential,' the Ministry of Defence said in its statement. (With inputs from ANI)
Business Recorder
10-05-2025
- Business
- Business Recorder
PSX sees big bounce-back
KARACHI: The Pakistan Stock Exchange (PSX) staged a remarkable recovery on Friday after four consecutive negative sessions, driven by easing tensions between Pakistan and India and anticipation surrounding the upcoming IMF Board meeting. The benchmark KSE-100 Index gained 3,648 points, or 3.52 percent to close at 107,174.64 points on Friday compared to 103,527 points on Thursday. Overall, some 519 million shares were traded down from 653 million a day earlier. On Friday, BRIndex100 also increased by 411.38 points or 3.79 percent to settle at 11,267.56 points with a total volume was 451.39 million shares. BRIndex30 closed at 32,236.02 points, up by 1502.16 points or 4.89 percent with a total volume was 309.693 million shares. Analysts said the KSE 100 Index rebounded on the last trading day of the week and gained to close at 3.5 percent recouping some of the previous day losses, in which KSE 100 Index lost some 6.7 percent. This recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility (EFF) program, where market expects smooth approval. Overall decline in cross border hostilities also provided stimulus to investor sentiment, they added. The total traded value on the ready counter declined to Rs 29 billion compared to Rs 35.44 billion in the previous session. The market capitalization increased by Rs 368 billion to Rs 12.893 trillion. Out of 441 active scrips, 300 closed in positive and 99 in negative while the value of 42 stocks remained unchanged. Muhammad Rizwan Director Brokerage Chase Securities Pakistan (Pvt.) Limited, after four consecutive days of decline, totaling an 11.2 percent loss, the market staged a remarkable recovery, on hopes of easing tensions between the two sides, fueled by international diplomatic efforts. Hopes of a potential release of a $1 billion IMF tranche and anticipation of circular debt payment boosted investor confidence in the second half of the session, particularly benefiting Oil and Gas Exploration stocks. Stocks like OGDC, PPL, SNGP, and PSO closed with gains ranging from 4 percent to 6 percent. WorldCall Telecom was the volume leader with 47 million shares and closed at Rs 1.16 followed by Cnergyico PK that closed at Rs 33.5 with 6.42 million shares. Sui South Gas ranked third with share trading of 29 million shares and it closed at Rs 27.69. PIA Holding Company LimitedB and Nestle Pakistan Limited the top gainers increasing by Rs 703.20 and Rs 120.31 respectively to close at Rs 7,735.23 and Rs 7,119.15, while Unilever Pakistan Foods Limited and Supernet Technologies Limited were the top losers declining by Rs 107.87 and Rs 64.78 respectively to close at Rs 21,972.88 and Rs 780.00 BR Automobile Assembler Index closed at 20,531.57 points, marking a net gain of 432.79 points or 2.15 percent, with a total turnover of 11.80 Cement Index ended the session at 8,931.34points, reflecting a rise of 441.80 points or 5.20 percent, and a total turnover of 44.01 million. BR Commercial Banks Index settled at 31,716.02points, posting an increase of 839.07 points or 2.72 percent, with a total turnover of 43.33 Power Generation & Distribution Index finished at 18,055.73points, showing a gain of 646.72 points or 3.71 percent, and a total turnover of 24.19 million. BR Oil & Gas Index closed at 10,293.23points, registering a positive change of 526.39 points or 5.39 percent, with the highest turnover of 83.87 Technology & Communication Index ended at 4,369.11points, up by 122.24 points or 2.88 percent, with a notable turnover of 75.50 million. Ahsan Mehanti of Arif Habib Corp said that stocks staged sharp recovery as investor eye de- escalation in Pak -India tensions after US appeal for end to violence and IMF board approval disbursement of $1bn under EFF and additional arrangement for $1.3bn under RSF. He added that SBP policy easing and surge in global crude oil prices played catalyst role in record bullish close at PSX. Copyright Business Recorder, 2025
Indian Express
08-05-2025
- Business
- Indian Express
IMF Board should look 'deep within' before bailing out Pakistan: FS ahead of key Fund meet
A day before the International Monetary Fund (IMF) is set to review the financing facilities extended to Pakistan, India's Foreign Secretary Vikram Misri on Thursday said the Fund's Board should look 'deep within' and take into account the facts before generously bailing out the country. He questioned the efficacy of several bailout packages extended to Pakistan over the last three decades and raised questions on its utilisation by the country. Misri said India's Executive Director will put forward its position at the IMF Board meeting on May 9. 'We have an executive director at the IMF. Tomorrow there is a meeting of the board of the IMF, and I am sure that our Executive Director will put forward India's position. The decisions of the Board are a different matter, you know, the process through which they are made. But, I think the case with regard to Pakistan should be self-evident to those people who generously open their pockets to bail out this country…,' he said. Misri pointed out that there have been several IMF bailout programmes sanctioned in the space of the last three decades. '…I think you would also have an idea on how many of those programmes have reached successful conclusions. Probably, not many. So, I think this is a decision that (IMF) Board members have to take by looking deep within themselves and looking at the facts,' he said. As per the IMF website, there have been 25 arrangements for Pakistan since it became a member of the IMF in 1950. As of March 31, 2025, the outstanding purchases and loans to Pakistan from the IMF stood at $6.23 billion. The IMF is financing a $7-billion aid package to Islamabad that was approved in September 2024. The ongoing 37-month long Extended Fund Facility programme of the IMF consists of six reviews over the span of the bailout, and the release of the next tranche of approximately $1 billion will be contingent upon the success of the performance review. Parameswaran Iyer, Executive Director at the World Bank, who has been temporarily entrusted with the responsibility of being India's nominee director on the IMF Board will be part of the crucial May 9 Board meeting. Iyer's nomination was made after the termination of services of Krishnamurthy V Subramanian as the Executive Director at the IMF, six months before the end of his three-year tenure. India intends to speak with all multilateral development banks (MDBs) to push back against providing funds and loans to Pakistan amid rising tensions between the two countries, a senior government official had said last week. The move to directly approach MDBs, including the World Bank, the IMF, and the Asian Development Bank, is part of the government's broader efforts to curb financial flows that aid Pakistan's funding of terror activities. The government is also working towards bringing Pakistan back into the 'grey list' of the Financial Action Task Force (FATF), the global money laundering and terror financing watchdog. India is stepping up its ante against Pakistan following the attack on April 22 that killed 26 people in Pahalgam, and is looking at several measures aimed at tightening financial flows to the neighbouring country.
Indian Express
03-05-2025
- Business
- Indian Express
6 months of tenure left, Govt recalls Subramanian from IMF board
Six months ahead of the end of his three-year term as the International Monetary Fund's Executive Director, Krishnamurthy V Subramanian has been called back to India by the government, sources have confirmed to The Indian Express. The government is looking for his replacement to be nominated to the IMF Board, sources said. The reasons for his exit have not been officially announced. Sources said Subramanian is learnt to have raised questions about IMF's datasets, which did not go down well in the corridors of the Washington-headquartered multilateral agency. Additionally, sources said, concerns were flagged over an 'alleged impropriety' relating to the promotion and publicity of his latest book India @ 100. Subramanian, who was earlier Chief Economic Adviser, was nominated as IMF's ED by the government in August 2022 for a three-year term beginning November 1, 2022. Queries sent to Subramanian, the IMF and the Ministry of Finance by The Indian Express on this issue did not elicit a response. In February 2025, Subramanian, along with his two senior advisors at the IMF, had termed the weighted approach to rating by the IMF staff as skewed, misleading and going against the spirit of 'transparency,' 'objectivity' and 'even-handedness.' As per the IMF's website, Subramanian's name appeared as IMF's ED till May 2. As of May 3, the IMF has now marked the position of ED for India, Bangladesh, Bhutan, and Sri Lanka as 'vacant'. Harishchandra Pahath Kumbure Gedara is listed as the Director Alternate for the South Asia region. On May 2, Subramanian was scheduled to speak at a conference titled 'Investing Opportunities in India' organised by DoorDarshi Advisors' in Omaha, Nebraska in the US. A day earlier, the organisers posted on X that Subramanian has had an exigency and won't be able to join the event. The premature exit of Subramanian from the IMF's ED post comes ahead of the crucial IMF Board meeting on May 9, which is to be held to review financing facilities extended to Pakistan. At the meeting, India is going to oppose funding to its neighbouring country for terror financing in the backdrop of the attack carried out in Pahalgam on April 22 that killed 26 tourists. Most Executive Directors have got an extended term at IMF earlier. Before Subramanian, economist Surjit Bhalla was selected by the government for the post of IMF ED in October 2019 for a three-year period. Bhalla joined the IMF Executive Board in November 2019 and was then re-elected in the next electoral cycle for the two-year period from November 1, 2020 to October 31, 2022. As per the IMF, the Executive Board is responsible for conducting the day-to-day business of the IMF. It is composed of 24 executive directors, who are elected by member-countries or by groups of countries, and the managing director, who serves as its chairman. The Board usually meets several times each week. All IMF member-countries are represented on its Executive Board, which discusses the national, regional, and global consequences of each member's economic policies and approves IMF financing to help member-countries address temporary balance of payments problems, as well as overseeing the IMF's capacity development efforts.
