IMF to proceed with Pakistan review despite India’s objections

The International Monetary Fund (IMF) has confirmed that its Executive Board meeting related to Pakistan bailout programme will proceed as planned on May 9, 2025.

“As has been announced, the Executive Board meeting for the first EFF [Extended Fund Facility] review and RSF [Resilience and Sustainable Facility] request is scheduled for May 9. The Board meeting is going to take place as planned so there is no change,” said Mahir Binici, the IMF’s Resident Representative for Pakistan, in a statement to Business Recorder.

The statement comes a day after a Reuters report, citing its sources, said that India had asked the IMF to review loans disbursed to Pakistan as tensions between the South Asian neighbours escalated following a deadly attack in the Indian Illegally Occupied Jammu and Kashmir (IIOJK).

India and Pakistan have announced a raft of measures after an attack on tourists in the IIOJK last week killed 26 men and there is fear that the latest crisis between the nuclear-armed rivals could spiral into a military conflict.

Islamabad has denied any role and called for a neutral investigation. India suspended a critical river water sharing treaty, and the two countries have closed their airspace to each other’s airlines.

The board of the IMF will meet on Friday, May 9, to discuss the first review of the ongoing $7 billion bailout programme as well as a new $1.3 billion arrangement under a climate resilience loan programme.

Last month, the IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme.

Pending the IMF’s Executive Board approval, Islamabad can unlock the $1.3 billion under a new climate resilience loan programme spanning 28 months.

It will also free $1 billion for Pakistan under the $7 billion bailout programme, which would bring those disbursements to $2 billion.

The programme is critical to the $350 billion economy, and Pakistan said it has stabilised under the bailout that helped it stave off a default threat.