The International Monetary Fund (IMF) has firmly rejected Indian media claims suggesting that its financial support to Pakistan could be used for military operations against India.
In a recent press briefing, IMF Communications Director Julie Kozack made it clear that the funds provided under the Extended Fund Facility (EFF) are strictly for economic purposes and go directly to Pakistan’s central bank, not the government.
“IMF financing is designed to resolve balance of payments issues — not to fund military activities,” she said.
IMF Funds Go to Reserves, Not Military
Kozack emphasized that the money is not accessible to Pakistan’s military and comes with strict safeguards to ensure it’s used properly. These safeguards include:
- A ban on central bank lending to the government
- Specific targets for building up foreign reserves
- Structural reform requirements to improve public finances
She warned that failure to meet these conditions could halt future disbursements.
Indian Concerns Dismissed
India had raised objections that Pakistan could redirect IMF funds to rebuild regions involved in alleged cross-border terrorism. The IMF, however, categorically stated such actions fall outside the scope of its programs and are blocked by financial restrictions built into the bailout.
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Call for Peace Amid Tensions
Kozack expressed regret over recent tensions between Pakistan and India, urging both sides to seek a peaceful resolution. She highlighted the human cost of conflict and encouraged diplomatic efforts.
Timeline of IMF-Pakistan Program
The IMF approved Pakistan’s current EFF program in September 2024. A staff-level agreement for the first review was reached in March 2025, and the IMF Board approved it on May 9, unlocking the next tranche of funding.
India’s Executive Director Exit Not an IMF Issue
When asked about the recent departure of India’s Executive Director K.V. Subramanian, Kozack clarified that IMF Executive Director appointments are internal matters for member countries and not something the Fund influences.
This statement from the IMF comes as a clear rejection of misinformation and reinforces the transparency and economic focus of its financial support to Pakistan.
