The International Monetary Fund (IMF) has approved the release of a $1 billion tranche to Pakistan under its ongoing $7 billion bailout program, according to a statement from Prime Minister Shehbaz Sharif’s office on Friday.
The approval followed a successful first review of the Extended Fund Facility (EFF) program. This brings the total disbursement to $2 billion so far. Prime Minister Sharif welcomed the development, stating that the country’s economy is showing signs of improvement and progressing toward development.
This decision comes amid rising tensions between Pakistan and India, especially following the April 22 terrorist attack in Pahalgam, which New Delhi blames on Pakistan-based groups. India formally objected to the IMF’s financial support to Pakistan, voicing concerns that such funds could be misused to support cross-border terrorism. 
India raised its concerns during the IMF executive board meeting, where it opposed the $2.3 billion in combined funding—$1 billion under the EFF and an additional $1.3 billion under the proposed Resilience and Sustainability Facility (RSF). India warned that extending further loans to Pakistan risks enabling state-sponsored terrorism, potentially damaging the credibility of international financial institutions.
Despite India’s objections, the IMF proceeded with the disbursement. A staff-level agreement had already been reached prior to the recent escalation in tensions. The IMF has not issued an official response to India’s protest.
