Washington: The International Monetary Fund (IMF) has voiced optimism that Pakistan and India will resolve their recent tensions peacefully, urging both nuclear-armed neighbors to prioritize diplomacy and stability in the region.
Speaking at a press briefing in Washington, IMF Director of Communications Julie Kozack acknowledged Pakistan’s improved economic performance under its ongoing loan program. She stated that Pakistan successfully met all key economic benchmarks, allowing the Fund to release the next tranche of the loan without any obstacles.
Kozack emphasized that the IMF Executive Board made the decision to disburse the funds based on merit and mutual agreement. She clarified that the Extended Fund Facility (EFF) program is designed primarily to stabilize Pakistan’s foreign exchange reserves and is not intended for budgetary support. One of the program’s key conditions is that the Government of Pakistan must refrain from borrowing directly from the State Bank of Pakistan, a measure aimed at promoting fiscal discipline and central bank independence.
Commenting on the current geopolitical tensions, she said, “We are hopeful that Pakistan and India will find a peaceful solution to their recent conflict through dialogue. The loss of human lives in the latest escalation is truly tragic.”
This statement follows a period of heightened diplomatic and military tensions between the two countries, which have historically had a volatile relationship. The IMF’s remarks highlight the importance of regional peace not only for humanitarian reasons but also for maintaining investor confidence and supporting economic reforms.