IMF approves ₹11,000-crore loan for Pakistan:Nation seen as stable despite global economic challenges; debt load rises to ₹22 lakh crore

The International Monetary Fund (IMF) has approved funding worth $1.2 billion (around ₹11,000 crore) to help Pakistan navigate its ongoing economic crisis. The package includes a $1 billion loan and $200 million under the IMF’s climate program.
This support is part of a 37-month bailout program launched in 2024, under which Pakistan will receive a total of $7 billion in phases. The newly approved amount represents the third installment, granted after the IMF completed its review of the second installment. On Tuesday (December 9), the IMF Executive Board finalized two reviews of Pakistan’s economic performance and sanctioned an additional $1.2 billion. With this, Pakistan has received $3.3 billion (₹29,650 crore) from the IMF since last year. What conditions must Pakistan meet to receive IMF funding? To qualify for each installment, Pakistan must satisfy several requirements, including: Separately, the amount approved under the climate facility must be used for: For decades, Pakistan has relied heavily on loans from the IMF and friendly nations to manage its economic challenges. Received ₹12,000 crore in May despite India’s objection In May, during an IMF Executive Board meeting, India strongly objected to the financial assistance being extended to Pakistan, stating that such funds could be used to support cross-border terrorism. India refused to vote on the review and did not participate in the voting process. At the time, India said: “Continuous sponsorship of cross-border terrorism sends a dangerous message to the global community. It undermines the credibility of funding agencies and donors, and weakens global values. Our concern is that money provided by international financial institutions like the IMF could be misused for military purposes or state-sponsored cross-border terrorism.” What does the IMF Executive Board do? The International Monetary Fund (IMF) is a global organization that provides financial support, economic guidance, and oversight to its member nations. Its core decision-making body is the Executive Board, which: The Board has 24 Executive Directors, each representing a country or a group of countries. India has its own independent representative, who presents India’s position and ensures IMF decisions do not adversely impact the country. When a loan is being considered, this representative voices India’s perspective. How voting works in the IMF The IMF has 191 member countries, each with one vote—but the value of each vote differs based on a country’s quota. A country’s quota is determined by factors like: The United States has the largest quota at 16.5%, giving it the most influential vote—essentially a veto power.
India has 2.75%, while Pakistan has 0.43%. Types of voting rights What is SDR? Special Drawing Rights (SDR) is an international reserve asset created by the IMF. It functions like an international monetary unit, used in global financial transactions, though it is not an actual currency. Why the US holds decisive power Most IMF decisions require 85% of total votes. Since the US alone holds 16.5%, no decision can pass without US support.
If the US abstains, the voting total falls to 83.5%, which is below the required threshold—effectively giving the US veto power. ​