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Why India could not stop IMF bailout to Pakistan

created: May 14, 2025, 11:48 p.m. | updated: May 18, 2025, 6:47 a.m.

Despite India's protests, the IMF board approved the second instalment of a $7bn loan, saying Islamabad had demonstrated strong programme implementation leading to a continuing economic recovery in Pakistan. Delhi questioned the "efficacy" of such bailouts or the lack thereof, given Pakistan's "poor track record" in implementing reform measures. As one of the 25 members of the IMF board, India's influence at the fund is limited. Besides, IMF rules do not allow for a vote against a proposal - board members can either vote in favour or abstain – and the decisions are made by consensus on the board. A $15.6bn loan by the fund to Ukraine in 2023 was the first of its kind by the IMF to a country at war.

1 month ago: BBC News