In a significant development, India has suffered a major setback as the International Monetary Fund (IMF) Executive Board has approved the release of a loan installment for Pakistan. This move comes after the IMF approved a $1.3 billion additional funding program for Pakistan, which includes financial assistance for climate change mitigation efforts. Earlier, an official from the Indian government had demanded that the IMF reassess the financial aid given to Pakistan. However, today’s approval of the loan installment by the IMF has resulted in India’s failure to influence this decision, adding another defeat for the country on the global stage. Pakistan’s financial stability was bolstered by this approval, as the IMF is providing approximately $1 billion as part of its Extended Fund Facility, along with an additional $1.3 billion in flexibility and sustainability funding. This approval follows the staff-level agreement on March 25, 2025, regarding the first review of the $7 billion, 39-month loan program, which included key reforms like carbon levies, electricity price adjustments, and water tariff hikes. As part of the agreement, Pakistan is also required to complete specific policy actions related to environmental resilience and other projects. With the latest installment, the total IMF support for Pakistan amounts to $8.3 billion, with the additional funding contingent on the completion of agreed reforms and the advancement of climate adaptation measures. This milestone marks a significant moment in Pakistan’s efforts to stabilize its economy despite external pressures, including India’s attempts to challenge the financial aid.