WASHINGTON: International Monetary Fund (IMF) Director of Communications, Julie Kozack, firmly responded to an Indian journalist’s provocative question regarding funding for Pakistan during a press briefing.
During the press briefing, Indian journalist had asked Kozack whether Pakistan could use IMF funds to support cross-border terrorism.
Julie Kozack categorically rejected the notion, stating that the IMF loan programme is strictly for supporting Pakistan’s foreign exchange reserves and not for budgetary support or any government expenditure.
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She clarified that the IMF loan disbursement is meant to stabilize Pakistan’s balance of payments and is deposited directly into the State Bank of Pakistan’s reserves, not the federal treasury.
Julie Kozack further said that the IMF’s conditions prohibit the Government of Pakistan from borrowing from the central bank, and current borrowing from the State Bank stands at zero.
She also confirmed that Pakistan has met all economic targets under the existing loan program, which began in September 2024, and the May 9th disbursement was approved purely on merit.
She added that the IMF Executive Board approved the release of the loan installment based on Pakistan’s strong economic performance and that board voting is conducted confidentially. When asked about recent geopolitical tensions, she expressed deep sorrow over the human losses in the Pakistan-India conflict and hoped for a peaceful resolution between the two nations.
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