The IMF thinks Pakistan is trying to fix its economy, so this money is supposed to help.
But here’s the thing — India is really upset about it. Why? Because India believes Pakistan still supports terrorism across the border. And giving money to a country that creates problems, India says, is just wrong.
India didn’t vote “yes” or “no” on this decision. You might ask, why not? Well, the IMF doesn’t allow any country to say “no” in its voting system. You can only say “yes” or stay silent — what they call “abstaining.” So India chose to stay silent, but not because it agreed. In fact, it strongly opposed it and told the world why.
India said:
In the last 35 Years, Pakistan has borrowed loan about 28 Times from IMF And in the last 5 years, it took loans from four different programs. Still, nothing has really changed. Reforms haven’t worked. The money hasn’t brought real results.”
India also pointed out that Pakistan’s military is deeply involved in the country’s economy. That’s a big issue. When the army controls money matters, there is no transparency, and civilian leaders can’t make decisions freely. A UN report even said the Pakistan army runs the biggest businesses in the country.
IMF Board approved the first review of Pakistan’s economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong program implementation which has contributed to continuing economic recovery. https://t.co/7qqa7ZTBHA pic.twitter.com/EEyiLgcSvq
— IMF (@IMFNews) May 9, 2025
India warned that this money can be misused, maybe even for cross-border terrorism, and that puts the IMF’s reputation at risk. It said, “This isn’t just about money. It’s about doing what’s right.”
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Many countries quietly agreed with India, but the IMF followed its rules and approved the money anyway.
So in short: India didn’t vote ‘no’ because it can’t, but it made sure the world knew that giving money to a country that hasn’t changed and still causes trouble is not okay.
