“The same regime that harboured Osama bin Laden trains terrorists, funds attacks on India, destabilises Afghanistan and crushes Pashtun and Baloch voices. The IMF didn’t bail out an economy, it bankrolled bloodshed. How long will the world pay Pakistan to kill?”
That post on X not from an Indian, but an Afghan woman Mariam Solaimankhil (@mariamistan), member of Afghanistan’s parliament in exile, underscored some of the depth and variety of sentiment as news of the IMF loan for Pakistan spread.
Of course Prime Minister Shahbaz Sharif was elated … he “expressed satisfaction ovder the approval of $1 billion by the IMF and the failure of India’s high handed tactics”, referring to India actively campaigning against it and later abstaining on the vote.
This is Pakistan’s 24th loan from the IMF and fourth grant in the last five years and there is every likelihood this loan too will go the way of the rest: in short term spending. For India it’s about how that money will fund Pakistan’s military and of course terrorist groups. But the IMF members were not willing to listen.
“India does not have the voting weight to block it,” explained Ambassador Sharat Sabharwal, former Indian High Commissioner to Pakistan. “Unless the US turns against this rogue regime, the loans will go through,” he said suggesting that the government’s approach was realistic given the limitations of India’s influence in this matter.
India’s statement at the IMF said it all: …” 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.”
But the West also tends to look at Pakistan differently.
“They are in the economic doghouse and the situation is volatile; if the economy collapses, it then becomes an even bigger headache,” Sabharwal said.
Pakistan’s external debt has climbed to over $130 billion in 2024, while its foreign exchange reserves stand at just over $15 billion – enough to cover barely three months of imports. The army has a stranglehold over how government money is spent.
All indications are that the budget, due to be unveiled early next month, will see a steep 18% increase in defence spending with money going to finance purchase of more weapons. This will only accentuate Pakistan’s economic crisis but the generals will not have it any other way.
