In scathing criticism of the IMF loan to Pakistan, former Assistant General Secretary of the United Nations Laxmi M. Puri said, &ldquo;The world needs to understand- funding Pakistan is not supporting peace. It&rsquo;s subsidising terrorism.&rdquo; 
&ldquo;From 1958 to yesterday &mdash; Pakistan has turned the IMF into a revolving credit line for chaos. Not for reforms, not for development &mdash; but to bankroll terror networks, shield global fugitives and prop up a military that thrives on instability,&rdquo; Laxmi Puri lamented in a note on X. 
&ldquo;Pakistan has defaulted on democracy, violated every IMF programme condition, and used bailouts to underwrite bloodshed. Yet the world keeps writing cheques. Why? Fear? Fragility? Or just failure to learn?&rdquo; she questioned. 
Pointing out that Pakistan has borrowed from the IMF 28 times since joining in 1950. &ldquo;That&rsquo;s not financial aid &mdash; it&rsquo;s geopolitical charity. This isn&rsquo;t economic distress. It&rsquo;s strategic abuse of international goodwill,&rdquo; Laxmi Puri added. 
India on Friday abstained from voting on extending a fresh $1.3 billion IMF loan to Pakistan under the Resilience and Sustainability Facility (RSF) lending programme at the meeting at which the loan was approved. 
India&rsquo;s representative on the IMF executive board had strongly opposed further financial assistance from the IMF to Pakistan, expressing serious concerns over Islamabad&rsquo;s track record and the fact that the bailouts were enabling the cash-strapped country to sponsor cross-border terrorism. 
&ldquo;While the concern that fungible inflows from international financial institutions, like the IMF, could be misused for military and state-sponsored cross-border terrorist purposes resonated with several member countries, the IMF response is circumscribed by procedural and technical formalities. 
This is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions,&rdquo; India&rsquo;s representative Parameswaran Iyer said at the meeting. 
He highlighted that Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and adherence to the IMF&rsquo;s programme conditions. 
Last September, the Executive Board of the IMF approved a 37-month Extended Arrangement under the EFF for Pakistan in the amount of SDR 5,320 million (or around $7 billion). 
While there was an immediate disbursement of $1 billion, the meeting on Friday was called to review the funding programme for Pakistan &ldquo;Pakistan military&rsquo;s deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms. 
Even when a civilian government is in power now, the army continues to play an outsized role in domestic politics and extends its tentacles deep into the economy. 
In fact, a 2021 UN report described military-linked businesses as the &ldquo;largest conglomerate in Pakistan&rdquo;. The situation has not changed for the better; rather, the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan,&rdquo;&nbsp;India&rsquo;s representative pointed out.&nbsp;
&mdash;IANS
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Laxmi Puri slams Pakistan’s terror financing links

India opposes IMF’s $1.3B loan to Pakistan, flags misuse for state-backed terrorism

UN Ex-Official Slams IMF Aid to Pakistan

India opposes IMF’s $1.3B loan to Pakistan, flags misuse for state-backed terrorism

May 11, 2025 | 17:37 IST