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IMF Defends Bailout, But Adds 11 New Conditions As India Raises Alarm Over Pakistan Funding

IMF Defends Bailout, But Adds 11 New Conditions As India Raises Alarm Over Pakistan Funding

Business Today
Business Today
  • New Delhi,
  • May 23, 2025,
  • Updated May 23, 2025, 6:16 PM IST

The International Monetary Fund has justified its billion-dollar bailout to Pakistan, despite imposing 11 new conditions, taking the total tally of conditions under the programme to 50. The IMF insists Pakistan has met the funding criteria, including key economic reforms like seeking parliamentary nod for its federal budget and implementing agricultural income tax reforms across provinces. While the IMF board expresses satisfaction, India has raised serious concerns. New Delhi warns that such international funding could indirectly support terror infrastructure. Sources say India has reached out to IMF leadership and is now planning to push the Financial Action Task Force (FATF) to re-add Pakistan to the grey list. India is also set to oppose a massive $20 billion lending package to Pakistan by the World Bank, expected to be approved in June. As geopolitical tensions rise, the funding debate for Pakistan has taken a sharp diplomatic turn.

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