Pakistan is seeking financial assistance from international partners, including the World Bank and the International Monetary Fund (IMF), amid rising tensions with India. The country's economic advisory department has made a public appeal for help, citing the escalation of conflict and a decline in the stock market.
IMF Meeting
Today, the IMF is set to discuss Pakistan's loan program, with the country's officials expecting approval for a $2.3 billion financing package and an additional $1.3 billion under the Resilience and Sustainability Facility. India, however, has urged the IMF to review financial assistance to Pakistan, citing concerns over terrorism .
India's Concerns
India's government has formally requested the IMF to reassess loans and financial aid extended to Pakistan, particularly after the Pahalgam terror attack that claimed 26 civilian lives. India argues that providing financial support to Pakistan could encourage global terrorism .
Loan Packages
- IMF Package: Pakistan has secured a $7 billion bailout program from the IMF, with a fresh $1.3 billion climate resilience loan approved in March.
- World Bank Package: The World Bank approved a $20 billion aid package for Pakistan in January 2025 to help the country overcome economic challenges.
- Asian Development Bank (ADB) Package: The ADB has committed $43.4 billion to Pakistan through 764 loans, grants, and technical assistance initiatives .
Outcome Uncertainty
Despite India's opposition, the IMF is likely to approve the loan package, given the support of its largest shareholders, the US and China. The IMF has expressed hope that tensions between Pakistan and India will ease, emphasizing the importance of stability and economic development in the region.