IMF Puts Condition on Pakistan Loan: De-Escalate with India, Stop Promoting Terrorism

New Delhi: Despite India's opposition, the International Monetary Fund (IMF) has given new help to Pakistan. But now the IMF has warned Pakistan that increasing tension with India can endanger its reform plans. IMF has also laid down 11 new conditions for Pakistan. It has also said that if it seems that Pakistan is misusing the money received from IMF, then its image can be tarnished. Under the bailout package given by IMF to Pakistan, it has been asked to do some reforms. IMF says that if political or social tension increases in Pakistan, then there may be difficulty in implementing reforms.

Opposition to help to Pakistan

India's concern is why help is being given to Pakistan, when its relations are linked to terrorism. Rajnath Singh had said last week that the Pakistan government could use the money received from the IMF to build hideouts for terrorists. He had asked the IMF to reconsider this aid. In the IMF board meeting on May 9, India opposed giving a loan of $1 billion to Pakistan. India also opposed additional aid of $1.4 billion in the name of climate change. But the US and European countries supported this proposal and approved it.

11 new conditions for taking a loan

The IMF has given 11 new conditions to Pakistan for taking a loan. The IMF says that if it seems that Pakistan is not fair or it is misusing the fund, then its image may be tarnished. The IMF said that Pakistan has assured it that it will make reforms to bring economic stability, create strong reserves and promote development.

Warning to be cautious

Amid criticism of India, the IMF said that "it is necessary to talk carefully to avoid misunderstanding about the role of the IMF." The IMF has to state that it does not take sides and its activities are limited to giving loans only. Some international rating agencies have also warned Pakistan about the ill effects of prolonged tension with India. However, the ceasefire has brought some relief to Pakistan's weak economy. The IMF has said that this help has been given to Pakistan because it has fulfilled the conditions of the loan.

The IMF has reiterated three old conditions for the 37-month program. The program started in September last year. Along with this, the IMF has also added 11 new conditions. These include getting the FY26 budget approved by Parliament, tax reform, and eliminating tax exemptions for special economic zones (SEZs) and industrial parks. Apart from this, the IMF has also talked about improving electricity and gas prices and lifting the ban on automobile imports.