Pakistan gets IMF money, India gets missiles: Inside a night of drones, strikes, chaos

Pakistan clinched over $2 billion in IMF loans on May 9, even as missiles and drones streaked across its border with India on the fourth straight day of intensifying cross-border strikes, blending financial diplomacy with a volatile military standoff.

On May 9, the IMF Executive Board approved a $1 billion tranche for Pakistan under the Extended Fund Facility (EFF), alongside $1.4 billion under the Resilience and Sustainability Facility (RSF), bringing total disbursements to approximately $2.1 billion. 

The approval was finalized during the board meeting between 9:30 AM and 10:30 AM ET (7:00 PM to 8:00 PM IST), with sources indicating the decision was reached by 8:00–8:30 PM IST.

At 1:24 AM IST on May 10, the IMF publicly announced the decision, citing Pakistan’s progress in stabilizing its economy, reducing inflation, and rebuilding foreign reserves.

India abstained from the vote, issuing a statement at 9:15 PM IST on May 9. The statement cited “strong dissent” over Pakistan’s history of IMF non-compliance and concerns that the funds could be diverted to “state-sponsored cross-border terrorism.” Indian officials clarified that IMF protocols permit only abstention or support, not a direct rejection.

By May 9, hostilities between the two countries had already entered a dangerous fourth day. The escalation followed the April 22 terror attack in Pahalgam, Kashmir, which killed 26 civilians and was attributed by India to Pakistan-based groups.

In retaliation, India launched Operation Sindoor in the early hours of May 7, striking terror launchpads and infrastructure inside Pakistan and Pakistan-occupied Kashmir. The strikes triggered an escalation, with both sides exchanging missiles, drones, and artillery fire by May 8, prompting evacuations and school closures in frontline regions.

Cross-border attacks intensified through May 9 and into May 10. India reported intercepting several Pakistani drones and missiles, while Pakistan claimed strikes on Indian military targets.

Though the IMF loan approval and the military escalation overlapped, diplomats and defense officials confirmed the two tracks remained separate. U.S. officials reportedly pressed Pakistan behind closed doors to agree to a ceasefire—suggesting the urgency of de-escalation was linked to broader IMF-related diplomacy, though not as an explicit condition.

A ceasefire was agreed through direct military channels, taking effect at 5:00 PM IST on May 10. The truce, however, remained fragile, with both sides accusing each other of violations in the following days.