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The IMF gave a loan of ₹ 12 thousand crore to Pakistan on 9 May.
The International Monetary Fund (IMF) has warned Pakistan on increasing tension with India. The IMF has said that if the situation does not improve, then the next installment of bailout program of 1 billion dollars (about ₹ 8,542 crore) of Pakistan can be stopped.
The IMF has described the increased tension between India and Pakistan after the Pahalgam terror attack as a threat to the bailout program. Along with this, 11 new conditions have been imposed on Pakistan to release the next installment of the loan. Now the total conditions on Pakistan for loan have increased to 50.
Pakistan wants to increase defense budget with loan money
In the first review meeting of the bailout program, the IMF said that if the tension continues or increased, Pakistan’s defense budget could become a burden on loans. It has already increased by 12% to 2.414 lakh crore Pakistani rupees.
The Pakistani government is adamant on increasing it by 18% to 2.5 lakh crores of Pakistani rupees. IMF is considering it a sign of fund misuse.
Gave a loan of ₹ 12 thousand crore on 9 May
The Executive Board of the International Monetary Fund (IMF) gave a new loan of $ 1.4 billion (about ₹ 12 thousand crores) to Pakistan on 9 May under the Climate Regilitation Loan Program. Also, the first review of the help of $ 7 billion (about ₹ 60 thousand crore) being found under Expected Fund Facility (EFF) has also been approved. With this, Pakistan will get $ 1 billion (about ₹ 8,542 crore) in the next installment.
A total disbursement of $ 2 billion has been done under this review approval of $ 7 billion. Pakistan will not get any amount immediately from the resilience loan.
India said- funding terrorism is dangerous
Imf of imf In the meeting of the Executive Board, India expressed concern over the funding being given to Pakistan and said that Pakistan used it to spread terrorism across the border. India did not join the review opposing voting. India issued a statement saying-
Giving a continuous sponsorship to cross -border terrorism sends a dangerous message to the global community. It risks the reputation of funding agencies and donors and makes fun of global values. Our concern is that funds coming from international financial institutions like IMF can be misused for military and state -sponsored terrorist objectives.
5 big things about India’s opposition …
- The IMF has given Pakistan a loan 28 times in the last 35 years. In the last 5 years, he has got funding under 4 programs.
- If the previous programs being run in Pakistan were successful, it would not have needed another bailout.
- The records show that either the IMF programs were not properly made or they were not monitored properly or Pakistan did not implement them properly.
- Even though there is a civil government in Pakistan right now, the army has a big role in the politics and economy of the country. This can cause interruptions in improvements.
- India, citing the IMF report, said that political things are taken care of in giving loans to Pakistan. Repeated loans have increased the debt burden on Pakistan.
IMF said in its statement, issuing funds to Pakistan,
Under the Climate Rejyliens Loan Program, Pakistan has made significant progress in stabilizing the economy and restoring confidence in the midst of challenging global environment with its efforts.
Pakistan Prime Minister Shahbaz Sharif said,
India’s efforts to harm the IMF program have failed.
India had said- IMF peeps deep inside itself before giving help to Pakistan
India’s Foreign Secretary Vikram Egypt said on Thursday- I think this is a decision that the members of the (IMF) board should take deep inside themselves and see the facts.
On Thursday (May 8), a day before the IMF meeting, India’s Foreign Secretary Vikram Egypt said that the IMF board should look deeply inside itself before giving relief to Pakistan and keep in mind the facts. In the last three decades, IMF has given many major assistance to Pakistan. No programs run by it have reached a successful result.
What does IMF executive board do?
IMF is an international institution that helps countries, advises and monitors their economy. The core team of this institution is the Executive Board. This team sees which country to give loans, which policies have to be implemented and how to work on the economy of the world.
It consists of 24 members called Executive Director. Every member represents a country or group of country. India has a separate (independent) representative. Who speaks in the IMF from India. It also sees that the policies of IMF should not harm the country. If the institution is going to give loan to a country, then give opinion on India on behalf of India.
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Read this news related to Pakistan’s economic condition …
Today’s Excellener: ₹ 21.6 lakh crore loan on Pakistan, vacant vault; 11 thousand crores were about to get, India is also going to stop
Every child of Pakistan is born with a loan of 86.5 thousand rupees at this time. Be it the import bill of oil and gas or everyday expenses like salary and subsidy, the entire economy of Pakistan is running on debt. But now India can vote against the loan from IMF to Pakistan.