Rejecting Indian worries that Islamabad would abuse the bailout, the International Monetary Fund (IMF) defended its recent payment to Pakistan under the Extended Fund Facility (EFF) on Thursday.
On May 9, the IMF executive board authorized the first assessment of its $7 billion program and a new $1.4 billion loan to Pakistan under its climate resilience fund, freeing up roughly $1 billion in cash.
“The Board approved the disbursement after finding that Pakistan had met all performance targets and made progress on structural reforms,” IMF spokesman Julie Kozack said at a press conference.
She emphasized that IMF monies are not utilized for budget financing or military reasons, but rather are sent to the central bank with the express purpose of addressing balance of payments difficulties.
