IMF Approves $1 Billion Bailout for Pakistan... India Protests, Citing Terrorism Concerns

India: "Potential for Misuse in Cross-Border Terrorism"

The International Monetary Fund (IMF) is providing $1 billion (approximately 1.4 trillion won) in financial assistance to Pakistan. India, which continues to engage in military clashes with Pakistan in the Kashmir region, has objected, claiming that the funds could potentially be misused for terrorism.

According to Bloomberg and other sources on May 10, the IMF Executive Board approved the disbursement of $1 billion in bailout funds for Pakistan the previous day. This is part of a $7 billion (9.8 trillion won) bailout program agreed upon last year. Since the bailout program had already been agreed upon, the board's approval for the disbursement was considered a formality.

However, India, which is engaged in conflict with Pakistan in the Kashmir region, has voiced its opposition. India abstained from the vote at the Executive Board, arguing that financial support for Pakistan could be misused for cross-border terrorism.

Shehbaz Sharif, Prime Minister of Pakistan, commented on the matter, stating, "India's attempt to obstruct the IMF bailout program has failed."

Meanwhile, the IMF's bailout program for Pakistan was decided in July last year, before the onset of military clashes between India and Pakistan. Pakistan has been suffering from a severe economic crisis due to massive external debt from large-scale infrastructure investments such as China's Belt and Road Initiative, the COVID-19 pandemic, and the major floods of 2022.As of May 2, Pakistan's foreign currency reserves stood at approximately $15.48 billion (21.65 trillion won), which is considered sufficient to cover two months' worth of imports.