Jammu and Kashmir CM Omar Abdullah has sharply criticised the International Monetary Fund (IMF) following its approval of a $1 billion disbursement to Pakistan under the ongoing Extended Fund Facility (EFF) and the consideration of an additional $1.3 billion loan for Pakistan under the Resilience and Sustainability Facility (RSF). IMF held a review meeting yesterday, and India, as a member of the IMF, abstained from voting. It had stated that the funds could be misused for financing state-sponsored cross-border terrorism.
“I’m not sure how the ‘International Community’ thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places,” wrote Abdullah on X (formerly known as Twitter).
I’m not sure how the “International Community” thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places.
— Omar Abdullah (@OmarAbdullah) May 10, 2025
The post comes right after he expressed shock at the death of an officer who was killed in Pakistan’s shelling in Jammu and Kashmir’s Rajouri yesterday.
Devastating news from Rajouri. We have lost a dedicated officer of the J&K Administration Services. Just yesterday he was accompanying the Deputy CM around the district & attended the online meeting I chaired. Today the residence of the officer was hit by Pak shelling as they…
— Omar Abdullah (@OmarAbdullah) May 10, 2025
IMF Voting Share
The United States holds the largest voting share at the IMF, with 16%, and given that Pakistan received funds from the institution, it can be inferred that the US either supported or did not oppose the decision. Other key IMF shareholders include Japan with 6.14%, China at 6.08%, Germany at 5.31%, France and the UK at 4.03% each, Italy at 4.12%, India at 3.05%, Russia at 2.68%, and Canada at 3.37%.
India abstained from voting
India abstained from voting at the IMF because rules don’t permit a formal no at the IMF. “India raised concerns over the efficacy of IMF programs in the case of Pakistan, given its poor track record, and also on the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism,” the Ministry of Finance said in a statement.
It added, “India flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources. The report noted that there was a widespread perception that political considerations have an important role to play in the IMF lending to Pakistan. As a result of repeated bailouts, Pakistan’s debt burden is very high, which paradoxically makes it a too big to fail debtor for the IMF.”
“India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values,” it further said.
Pakistan’s statement after the IMF approved funds
“Prime Minister Shehbaz Sharif expressed satisfaction over the approval of a USD 1bn dollar instalment for Pakistan by the IMF and the failure of India’s high-handed tactics against it,” the statement from Pakistan’s PMO read.
It added, “Pakistan’s economic situation has improved, and the country is moving towards development. India is plotting a conspiracy to divert attention from our country’s development through unilateral aggression.”
“Indian attempts to sabotage the IMF programme have failed,” the statement further added, stating that the funds would help stabilise the economy and put it on the path towards long-term recovery. “We are working on priority areas such as tax reform, improved energy sector performance and private sector development. The improved economic indicators in the last 14 months are a reflection of the government’s positive policies,” it said.