The Executive Board of the International Monetary Fund (IMF) has approved two financing programs for Pakistan, disbursing about $2.4 billion under its financial reform and climate resilience programmes.
Following its Executive Board meeting on May 9, the IMF stated it had completed the first analysis of Pakistan’s monetary reform application supported by the Extended Fund Facility (EFF) arrangement. This allows an immediate disbursement of around $1 billion, taking general disbursements under the arrangement to about $2.1 billion.
IMF review the Pakistan Financial Condition
In addition, the IMF Executive Board permitted Pakistan’s request for an association under the Resilience and Sustainability Facility (RSF), providing the access of about $1.4 billion. The RSF is intended to help the country to address vulnerabilities associated with weather change and natural screw ups.
The fund had earlier authorized Pakistan’s 37-month EFF on September 25, 2024 for the amount of around US$7 billion. This evaluation had allowed Pakistan to instant get access to around $1 billion at the time. With the state-of-the-art $1 billion prolonged under EFF, the IMF has distributed nearly $2.1 billion in loans to Pakistan.
$2.4 billion disburse to Pakistan
The Executive Board is responsible for undertaking the daily business of the IMF. It consists of 25 Directors, who are elected by member international locations or by companies of countries, and the Managing Director, who serves as its Chairman. The vote casting is based on financial size, and as the biggest monetary contributor to the IMF, the U.S. gets the most important share of vote casting energy amongst all collaborating countries at 16.49 % of the overall fund. India, Bangladesh, Bhutan, and Sri Lanka together get a 3.05 % vote.
Noting its strong dissent to IMF’s bailout package for Pakistan, India chose to abstain from vote casting in the meeting, because the IMF board has no provision to vote against or vote ‘no’ for any loan or suggestion. Its Directors can both vote in favour of a proposal, or abstain from voting.
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