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How did military-ruled Pakistan get $1 billion from IMF? The Money: Loan or Financial Aid?
May 12, 2025 01:34 pm
By
infodivyadelhi

Divya Delhi: Pakistan received a $1 billion IMF lifeline under U.S. pressure for a ceasefire, with the remainder funding depending on compliance. After the IMF conference, reports said the U.S. “pressured” the Islamic nation to deescalate tensions with India. A day later, allegations emerged that Prime Minister Shehbaz Sharif was seeking mediation from the U.S., China, and Saudi Arabia to start a ceasefire due to diminishing ammunition supplies and military coup worries. Pakistan's DGMO also requested a truce with India. On Friday, May 9, the IMF Executive Board approved an immediate release of $1 billion (about ₹8,500 crore) to Pakistan. The Extended Fund Facility (EFF) financing program aids countries with major economic issues. EFF for Pakistan was approved in September 2024 and will provide $7 billion over 37 months. After this payment, Pakistan has received $2.1 billion from the IMF under this arrangement. We'll explain why Pakistan deserves the $7 billion lifeline. The IMF promotes global economic stability and growth. The 1944-founded IMF is a global organization. Its principal responsibility is to maintain global money systems. Based in Washington, D.C., the IMF has 190 members—almost all nations. It lends to countries with significant debt or weak currencies. Countries must comply with rules and make economic adjustments to receive these funds. Each member country contributes based on its economy to the IMF.