Pakistan has obtained the second instalment of special drawing rights amounting to 760 million ($1,023 million) from the International Monetary Fund (IMF) through the extended fund facility programme.
The State Bank of Pakistan announced on X (formerly Twitter) that these funds will be incorporated into its foreign exchange reserves for the week ending May 16, according to a Reuters report.Last week, India abstained from voting at the International Monetary Fund’s Executive Board meeting, expressing serious concerns about IMF bailout packages for Pakistan. India highlighted Pakistan’s status as a long-term IMF borrower with poor compliance regarding programme conditions. The substantial financial support has led to Pakistan amassing significant debt, effectively making it a ‘too big to fail debtor’ for the IMF, India said.Also Read | India-Pakistan ceasefire: How India’s punitive measures will continue to hit Pakistan’s fragile economy – explainedDuring the review of Pakistan’s Extended Fund Facility (EFF) programme ($1 billion) and assessment of a new Resilience and Sustainability Facility (RSF) programme ($1.3 billion), India raised doubts about the efficacy of IMF support, given Pakistan’s poor track record. India also raised concerns about the possible use of debt financing resources to support cross-border terrorism through state mechanisms.India highlighted how Pakistan’s military’s deep engagement in economic affairs poses substantial risks to policy execution and long-term reforms. Whilst a civilian government holds office, the armed forces continue to wield considerable control over the nation’s political and economic spheres, according to India’s statement.A UN assessment from 2021 recognised military-linked businesses as Pakistan’s ‘largest conglomerate’. The situation has grown more pronounced with the army now holding a pivotal role in Pakistan’s Special Investment Facilitation Council, India further noted.Also Read | Operation Sindoor: Can Pakistan economically afford a protracted conflict with India as tensions escalate? Here’s a reality check
