By Staff Reporter
KARACHI: The International Monetary Fund (IMF) will proceed with its Executive Board meeting on May 9 to review Pakistan’s $7 billion bailout program, dousing speculation of a delay sparked by a media report that India is pressing global lenders to rethink funds to Islamabad after a deadly attack in occupied Kashmir.
“As has been announced, the Executive Board meeting for the first EFF [Extended Fund Facility] review and RSF [Resilience and Sustainable Facility] request is scheduled for May 9,” Mahir Binici, the IMF’s Resident Representative for Pakistan said in a statement. “The Board meeting is going to take place as planned, so there is no change.”
The statement follows a Reuters report that India has pressed global multilateral agencies, including the IMF, to reassess their financial support to Pakistan as New Delhi seeks “to corner the neighbouring state diplomatically” after tensions between the South Asian neighbours escalated following an attack on tourists in occupied Kashmir last week.
Gunmen killed 26 people in one of the deadliest assaults on civilians in nearly two decades in Pahalgam town.
India blamed Pakistan for the attack, an accusation Islamabad rejected, urging an independent investigation. India suspended the Indus Water Treaty, a long-standing river-sharing agreement, and both countries banned each other’s airlines from their airspace and border crossings, deepening the rift between the nuclear-armed neighbors.
Pakistan’s economy leans heavily on IMF support. Last year, it clinched the Extended Fund Facility, followed by a $1.3 billion climate resilience loan in March. The May 9 review will gauge Islamabad’s adherence to bailout terms, a linchpin for sustaining financial lifelines.
Pakistan’s economic officials was also confident on IMF board meeting. A day earlier, Khurram Schehzad, adviser to the Finance Minister, said the program remains firmly on course and the IMF review process is progressing smoothly
“The latest review has been done well and we are completely on track,” Schehzad said, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
“We did about 70 meetings … interest has been very high for investing and supporting Pakistan as the economy turns around.”
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