The International Monetary Fund (IMF) has declined India’s request to suspend financial support to Pakistan, affirming that its Executive Board meeting scheduled for May 9 will proceed as planned.
This crucial meeting will evaluate Pakistan’s requests for financial assistance, including a significant $2.3 billion package. IMF representative Mahir Benisi confirmed that the session will not be delayed and will include deliberations on Pakistan’s aid applications. When questioned about India’s opposition, Benisi stated that the IMF does not comment on concerns raised by individual countries.
“The board meeting will take place as scheduled, and we cannot comment on the positions of other nations,” he said.
Pakistan’s Ministry of Finance remains confident about securing the needed financial backing. Officials anticipate approval of the $1.3 billion under the Resilience and Sustainability Facility (RSF), designed to bolster the country’s climate change response, along with an additional $1 billion to supplement the ongoing $7 billion Extended Fund Facility (EFF). The total funds will be released over a 28-month period.
If approved, the RSF will support Pakistan in managing the increasing effects of climate change by enhancing resilience and sustainability. The first disbursement is expected soon after the meeting. A staff-level agreement on the RSF was finalized on March 25, 2025, marking an important step toward securing international climate financing.
India had formally urged the IMF to reconsider its financial assistance to Pakistan, citing recent tensions, including the deadly attack in Pahalgam, Kashmir, where 26 people were killed. India has blamed Pakistan for the incident—a claim that Islamabad strongly denies. A source from the Indian government told Reuters that the request was made officially, but no detailed justification was provided.
Despite these objections, Pakistan’s economic team is optimistic. Khurram Shahzad, advisor to the finance minister, emphasized that the IMF program remains on track. “The latest review was successfully concluded, and we are advancing as planned,” he said, noting that recent spring meetings in Washington with global financial institutions were productive. Shahzad also highlighted interest from international investors in supporting Pakistan’s economic recovery, citing over 70 meetings held during the visit.
India and Pakistan have been locked in escalating diplomatic and economic tensions in recent weeks. India has suspended a key water-sharing treaty, and both countries have shut down airspace to each other’s commercial flights. Nevertheless, the IMF’s decision to proceed with Pakistan’s funding suggests a focus on economic stability in the region despite the geopolitical friction.
Pakistan, which secured a $7 billion IMF bailout last year, continues to depend on international support to avoid default and revive its economy. With the program in place, officials say the country’s economic outlook is showing signs of improvement.
