On 9th May 2025, the International Monetary Fund (IMF) approved a fresh loan of $2.3 billion for Pakistan. Out of this, $1 billion is from an already running plan called the Extended Fund Facility (EFF), and the remaining $1.3 billion is from a new plan called the Resilience and Sustainability Facility (RSF). The aim is to support Pakistan’s weak economy.
But India is not happy with this decision. In fact, India didn’t even take part in the vote during the IMF meeting and clearly said that giving money to Pakistan again and again is not helping at all.
India pointed out that Pakistan has taken loans from the IMF many times before, but nothing much has changed. In just the last 5 years, Pakistan has received IMF support 4 times. If those programs had worked, why would another bailout be needed now?
India also raised a serious concern
what if this money is misused? For example, it could be used to support cross-border terrorism. India said such misuse could damage the reputation of global organisations like the IMF and others who help with funding.
Another thing India said is that Pakistan’s army is deeply involved in the country’s economy, not just in politics. This makes real economic reforms very difficult. A UN report in 2021 had also said that the military in Pakistan runs one of the biggest business groups in the country.
Even the IMF’s own report once said that political pressure often plays a role when it gives money to Pakistan. India warned that these repeated loans are only increasing Pakistan’s debt, and now Pakistan is becoming what’s called a “too big to fail” country for the IMF.
In short —IMF has once again stepped in to support Pakistan’s economy, but India is openly questioning this move. Now, everyone is watching to see whether Pakistan uses the money in the right way this time, or whether things go back to how they were before.