IMF Provides $1 Billion in Aid to Pakistan; India Raises Concerns About Cross-Border Terrorism. Tensions Rise Between the Two Nations.
India-Pak Tension: The International Monetary Fund (IMF) has approved a $1 billion economic aid package for Pakistan. This amount is disbursed under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The IMF clarified that this aid aims to assist Pakistan in tackling climate change, natural disasters, and boosting economic stability.
The IMF states that this assistance is part of a 37-month program extending until September 2024. A total of $2.1 billion in aid has been provided to Pakistan under this program so far.
India's Objection: Concerns Over Funding Terrorism
India has bly objected to the IMF's decision. During the IMF board meeting, India expressed concerns that the economic aid provided to Pakistan might be used to support cross-border terrorism. India argued that Pakistan's past record is poor, and providing financial assistance to such a country violates global values.
India abstained from the IMF board meeting and did not participate in the voting. While India's objections were recorded by the IMF, the decision to provide aid remained unchanged.
Pakistan's Response: Criticism of India
Pakistan's Prime Minister's Office hailed the economic assistance as a "success" and dismissed India's objections as baseless. The Pakistani government claimed that the IMF aid will help stabilize the country's economy and propel its development.
Pakistan also accused India of hindering its development through unilateral aggression on international platforms.
Questions Raised About the Military's Role
India and several other countries have expressed concerns about the excessive influence of the military on Pakistan's economic policies. A United Nations report identified business groups linked to the Pakistani military as the country's largest commercial network. Experts believe that as long as direct military interference persists, transparent use of foreign aid cannot be ensured.
