IMF defends $1 billion bailout citing ‘required targets met’

The International Monetary Fund (IMF) has justified its decision to release a $1 billion bailout package to Pakistan, brushing aside objections raised by India. According to the IMF, Pakistan fulfilled all the criteria set under the Extended Fund Facility (EFF), which was approved in September 2024, and thus qualified for the disbursement.

Speaking at a press briefing, IMF spokesperson Julie Kozack explained that Pakistan had “met all of the required targets” under the agreement. She added that Pakistan had made measurable progress on key reforms, prompting the IMF Executive Board to approve the disbursement earlier this month.

India had strongly opposed the bailout, stating that the funds would indirectly support cross-border terrorism. Defence Minister Rajnath Singh criticized the IMF decision, calling it “a form of indirect funding to terror.” New Delhi formally protested the bailout and abstained from the vote, citing Pakistan’s repeated misuse of previous aid packages. However, the IMF proceeded with the approval after its internal review deemed Pakistan eligible.

As part of the bailout conditions, Pakistan was required to meet 11 new obligations, including lifting import restrictions, increasing electricity surcharges, and securing parliamentary approval for specific reforms. Despite growing India-Pakistan tensions, the IMF maintained its stance that the programme remained focused on stabilizing Pakistan’s struggling economy.