International Monetary Fund (IMF) has approved a $1 billion disbursement to Pakistan under its Extended Fund Facility, despite strong objections from India regarding Pakistan's alleged support for cross-border terrorism. This decision has sparked a significant debate on the responsibilities of international financial institutions in addressing security concerns alongside economic assistance.

India abstained from the IMF vote, citing apprehensions that the funds could be misused to support activities detrimental to regional stability. Indian officials highlighted Pakistan's history of receiving IMF assistance without substantial improvements in governance or counter-terrorism efforts. They expressed concerns that continued financial support without stringent oversight might inadvertently enable state-sponsored terrorism.

The IMF justified its decision by acknowledging Pakistan's policy reforms aimed at economic stabilization. The $1 billion disbursement is part of a broader $7 billion program, with the IMF also approving a new $1.4 billion loan under its Resilience and Sustainability Facility to support Pakistan's efforts in building economic resilience to climate vulnerabilities.

The approval comes at a time of heightened tensions between India and Pakistan, following recent terrorist attacks in Indian-administered Kashmir. India has accused Pakistan of harboring terrorist groups responsible for these attacks, leading to military escalations and diplomatic strains.

Critics argue that providing financial aid to Pakistan without addressing these security concerns undermines efforts to combat terrorism and could embolden state actors that support such activities. They call for a more integrated approach that considers both economic needs and security implications.

The IMF's decision to proceed with the loan to Pakistan, despite India's objections, underscores the complex interplay between economic assistance and geopolitical considerations. While supporting economic stability is crucial, it is equally important for international institutions to ensure that such support does not inadvertently facilitate activities that threaten regional and global security.