It’s not $1 bn, Pakistan got $2.4 bn from IMF even as India warned of terror funding risk

While headlines spotlight a $1 billion disbursement, Pakistan in fact unlocked $2.4 billion in total support from the International Monetary Fund—a figure that includes $2 billion under an existing $7 billion assistance package and an additional $1.4 billion in an approved climate resilience loan. 

The IMF’s move—finalized just days after a terror attack in Kashmir and amid rising military hostilities—has drawn sharp criticism from New Delhi, which warned that approved funds, even if conditional, could be misused to fuel state-sponsored cross-border terrorism.

At Friday’s IMF Executive Board meeting, India abstained from the vote but made its objections clear, expressing concern about Pakistan’s misuse of international aid. Despite this, the IMF board moved forward with a $1 billion (SDR 760 million) immediate disbursement under the Extended Fund Facility (EFF) after Pakistan cleared its first review.

An additional $1.4 billion (SDR 1 billion) was approved under the Resilience and Sustainability Facility (RSF)—a loan tied to climate and disaster preparedness. 

However, this portion will only be accessible if Pakistan meets certain reform benchmarks. Indian officials argue that even delayed funding sends the wrong signal amid an active military conflict.

Pakistan’s Prime Minister Shehbaz Sharif declared the IMF decision a political win: “India’s attempts to sabotage the IMF program have failed,” he said following the approval.

India’s finance ministry pushed back sharply, stating that “fungible inflows from international financial institutions like the IMF could be misused,” and noting the concern “resonated with several member countries.”

Strategic experts were more direct. ORF’s Sushant Sareen said the IMF had effectively emboldened Pakistan: “It encouraged them to continue targeting Indian cities and military installations.” Former Foreign Secretary Kanwal Sibal slammed the decision as “terrible optics,” criticizing G7 countries for pushing the deal through. “Recall the massive financial support given with alacrity to Ukraine,” he added, citing Western bias.

Psephologist Yashwant Deshmukh was even starker: “IMF has blood on its hands.”

And in a rare outburst, former Jammu & Kashmir Chief Minister Omar Abdullah charged that the IMF was “reimbursing” Pakistan for its attacks. “How does the international community expect de-escalation when the IMF funds the devastation of Poonch, Rajouri, Uri, Tangdhar & so many other places?” he asked.