Amid stress from India, the International Monetary Fund (IMF) has given a fund of $ 1 billion to Pakistan. Despite wanting, India could not vote against this bailout package given to Pakistan. However, India opposed the funding citing Pakistan’s bad track record and said that the financial assistance that Pakistan had received earlier also did not use it properly.
In fact, in the IMF Board meeting held in Washington on 9 May, India expressed concern over Pakistan’s repeated not fulfilling the terms of IMF assistance. India cited the IMF report, stating that political views have an important role in giving IMF loans for Pakistan. It was also told in the report that due to repeated bailouts, Pakistan’s debt has become very high, which makes it ‘very big bankrupt’ for IMF.
India also raised that the financial assistance provided by the IMF to Pakistan is not being properly utilized, and with this help Pakistan’s army and terrorist groups are indirectly supporting. India alleged that the financial assistance being given to Pakistan gives a boost to terrorist organizations such as Lashkar-e-Taiba and Jaish-e-Mohammed, who attack the Indian land.
Why could India not vote against funding to PAK?
The decisions in the IMF are usually unanimous, but when voting takes place, there is no option to vote in protest. Member countries can only vote in support or abstain from voting. India openly opposed the bailout package, but under the rules it could only abstain from voting. In view of this, India had withdrawn its Executive Director Krishnamurthy Subramaniam in the International Monetary Fund (IMF) six months before the scheduled period. With this, India was not in a position to vote in the IMF at present.
Pakistan’s economy dependent on IMF
Explain that Pakistan’s economy, which is struggling with Kangali, is badly dependent on IMF aid. It is seen as a message to the IMF and other multilateral financial institutions to distance away from this voting of India that giving financial assistance to Pakistan without taking concrete steps can be dangerous in terms of regional security.
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