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Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
India asks IMF to reconsider Pakistan programme over ‘terror funding'
Pakistan came to the brink of default in 2023 but was saved by a US$7 billion bailout from the IMF. (Reuters pic) SRINAGAR : Indian defence minister Rajnath Singh said today the International Monetary Fund (IMF) should reconsider a US$1 billion loan to Pakistan, alleging Islamabad was 'funding terror'. 'I believe a big portion of the US$1 billion coming from IMF will be used for funding terror infrastructure,' Singh told troops at an air force base in western India. 'I believe any economic assistance to Pakistan is nothing less than funding terror'. India and Pakistan last week launched missiles, drones and artillery strikes on each other before a ceasefire that began Saturday. The IMF last week approved a loan programme review for Pakistan, unlocking around US$1 billion in much-needed funds and greenlighting a new US$1.4 billion bailout despite India's objections. India – which also represents Bhutan, Sri Lanka, and Bangladesh on the IMF board – abstained on the review vote, a statement from its finance ministry voicing 'concerns over the efficacy of IMF programmes in the case of Pakistan given its poor track record'. Pakistan came to the brink of default in 2023, as a political crisis compounded an economic downturn and drove the nation's debt burden to terminal levels. It was saved by a US$7 billion bailout from the IMF – its 24th since 1958. Singh claimed it was 'now clear that in Pakistan terrorism and their government are hand in glove with each other'. 'In this situation there is a possibility that their nuclear weapons could get their way into the hands of terrorists. This is a danger not just for Pakistan but the entire world,' he said. Fighting between New Delhi and Islamabad began when India launched strikes on May 7 against what it called 'terrorist camps' in Pakistan following an April attack in Indian-administered Kashmir which killed 26 people. New Delhi blamed Islamabad for backing the rebels it claimed were behind the attack – the deadliest on civilians in Kashmir in decades. Pakistan denies the charge. Four days of intense drone, missile and artillery exchanges ensued, leaving around 70 people, including dozens of civilians, dead on both sides.
The National
22-05-2025
- Business
- The National
IMF ready to provide Syria with support after sanctions lifted
The International Monetary Fund on Thursday said it is ready to provide Syria with technical assistance after the US and European Union lifted sanctions on the country. IMF staff were said to be preparing to support international efforts to help Syria recover economically. "We stand ready to provide advice, and targeted and well-prioritised technical assistance in our areas of expertise," IMF communications director Julie Kozack said. The IMF has had "useful discussions" with Syrian officials and has started working to rebuild its understanding of the Syrian economy, she added. "Syria will need significant assistance to rebuild its economic institutions," Ms Kozack said. US President Donald Trump last week announced he would lift sanctions on Syria, a major step for the country as it looks to secure economic assistance after a brutal 14-year civil war. Mr Trump also met Syrian President Ahmad Al Shara as part of the US leader's trip to the Gulf. In a separate announcement this week, the EU announced it would also lift economic sanctions on Damascus. The World Bank last week said Qatar and Saudi Arabia had paid off Syria's outstanding $15.5 million debt to the institution, paving the way for it to receive support and assistance. Estimates on the cost of rebuilding Syria vary greatly, but one analysis from the Carnegie Endowment for Peace has it at $250 billion to $400 billion. Ms Kozack said sanctions relief could support Syria's efforts to address its challenges, and progress with energy construction and economic development. US Secretary of State Marco Rubio this week said the move was vital for supporting the new government, but also warned another civil war could potentially be only weeks away. Mr Rubio's warning came after recent attacks by pro-government militias on Syria's Alawite and Druze minorities. Syria's new government, led by Mr Al Shara, has been seeking to reset relations with western institutions following the toppling of Bashar Al Assad's regime last year. Mohammed Yisr Barnieh, the country's new central bank governor and finance minister, attended last month's spring meetings in Washington, the first time Syria had been represented in two decades. He attended a roundtable with the World Bank, IMF and Gulf leaders on the country's reconstruction needs. IMF managing director Kristalina Georgieva, World Bank president Ajay Banga and Saudi Finance Minister Mohammed Al Jadaan said in a joint statement at the time that priority would be given to address the Syrian people's needs, rebuilding institutions, capacity development, policy reforms and developing an economic recovery strategy.
