The International Monetary Fund (IMF) on Friday approved a fresh loan of about $1 billion to Pakistan under the ongoing Extended Fund Facility.
India registered its protest by abstaining from voting at the crucial IMF meeting, pointing out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community.
According to government sources, India abstained from the IMF vote as the system does not allow a formal “no” vote.
The IMF Executive Board consists of 25 Directors who represent member countries or groups of countries. It handles daily operational matters, including loan approvals. Directors can either vote in favor or abstain. There is no provision to vote against a loan or proposal, said government sources.
Unlike in the United Nations, where each country has one vote, IMF voting power reflects the economic size of each member. For instance, countries like the United States hold a disproportionately high voting share. To simplify things, the IMF typically makes decisions by consensus.
India, say sources, questioned the effectiveness of ongoing IMF assistance, noting that Pakistan has received support in 28 of the past 35 years, including four programs in just the last five without meaningful or lasting reform.
By abstaining, the sources added, India conveyed its strong dissent within the constraints of the IMF’s voting system and used the opportunity to formally record its objections.
India strongly highlighted the Pakistani military’s continued dominance in economic affairs, which undermines transparency, civilian oversight, and sustainable reform, said the sources.
India firmly opposed providing funds to a country that continues to sponsor cross-border terrorism, warning that such support carries reputational risks for global institutions and undermines international norms, according to government sources.