The International Monetary Fund (IMF) has granted Pakistan the first $1 billion loan, equivalent to over ₹85,420 crore, late last night—ironically at the same time Pakistan was launching thousands of drones and missiles into India. The total disbursement under the EFF now stands at $2.1 billion, signaling strong progress in fiscal reforms and macroeconomic stabilization.
The next installment of $1.3 billion is scheduled to be released on 28th of next month, under the pretext of climate change mitigation. The irony is stark—everyone can guess how Pakistan will really use the money.
Additionally, the IMF Executive Board has approved $1.4 billion under the Resilience and Sustainability Facility (RSF) to support Pakistan’s efforts in tackling climate change and building disaster resilience.
Many are asking: Who is funding this loan? Who runs the IMF? Does it make any sense to provide this massive financial aid to Pakistan amidst an escalating war-like situation?
Who Controls the IMF?
The IMF is governed by 187 member countries. Loan approvals go through voting by these members, based on need and utility. Among them:
- The United States holds 16.5% voting power,
- China and Japan have 6% each,
- Germany 5.3%,
- UK and France 4% each,
- India and Russia hold 2.6% each.
Did you know that he US has veto power in IMF.
To pass any major decision (like approving loans, policies, or actions), 85% majority is needed. Even if 186 countries vote “Yes,” the US alone can block the approval due to its veto.
So now you know who enabled this massive loan to Pakistan during active cross-border aggression—the US.
Why Is the IMF Supporting Pakistan Now?
The IMF praised Pakistan for demonstrating “strong program implementation”, despite facing global economic uncertainty, climate disasters, and domestic fiscal challenges. The Fund noted:
- Effective monetary policy by the State Bank of Pakistan, which has reduced interest rates by 1100 basis points since June 2025
- Improved macroeconomic stability, which is building investor and public confidence
- A commitment to fiscal discipline, including passing key reforms such as the Agricultural Income Tax