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The International Monetary Fund (IMF) has clarified that Pakistan cannot divert IMF funds for non-programme purposes, including unauthorised government spending or lending. The statement comes amid international scrutiny following the recent disbursal of a $1 billion tranche under the Extended Fund Facility (EFF) , which India has publicly opposed. Image Source: Wiki/Representational Only IMF Communications Director Julie Kozack reiterated on Thursday that IMF financing is strictly intended to address balance of payments challenges , and that safeguards are in place to ensure the funds are used only within the scope of approved programme objectives. “There are strict protocols and regular performance reviews to prevent misuse of funds,” Kozack said. She explained that deviations from agreed programme conditions—such as structural reforms and improved fiscal discipline —could lead to a halt or revision of...

The International Monetary Fund (IMF) has defended its recent $1 billion loan disbursement to Pakistan , asserting that the decision was based strictly on economic assessments and Pakistan’s compliance with reform conditions — a move that comes amid vocal opposition from India following its counter-terror operation, Operation Sindoor . Image Source: Wiki/Representational Only IMF Communications Director Julie Kozack addressed the controversy, stating that the Fund's Executive Board approved the disbursement on May 9 after confirming Pakistan had “met all of the targets” under the Extended Fund Facility (EFF). “Pakistan had made progress on reforms,” she said, emphasizing that the Fund’s review process follows standard protocol focused on technical and fiscal benchmarks. Kozack also confirmed that a Staff-Level Agreement was reached with Pakistani authorities on March 25 and later rat...