Experts Urge IMF to Reform Funding Processes Amid Fresh Loans to Pakistan

Experts Urge IMF to Reform Funding Processes Amid Fresh Loans to Pakistan

The International Monetary Fund (IMF) has approved new loans to Pakistan amidst its ongoing conflict with India, prompting experts to call for a comprehensive review of the IMF's funding processes and loan conditions. Concerns have been raised about the effectiveness of repeated bailouts and the potential misuse of funds.

India abstained from the IMF vote, expressing apprehensions that the funds might be diverted towards military expenditures or activities supporting terrorism. Indian officials have emphasized the need for stringent monitoring to ensure that the financial assistance is utilized appropriately.

Pronab Sen, former chairman of the National Statistical Commission, highlighted that IMF funds are typically tied to specific conditions, with subsequent tranches released upon meeting these criteria. He noted that the continuation of bailouts to Pakistan may depend on how the U.S. administration perceives Islamabad's geopolitical alignment in the coming years.

The IMF's decision has sparked a broader debate on the necessity for reforms in its funding mechanisms, especially concerning countries with recurring financial instability. Experts advocate for a more rigorous assessment of loan effectiveness and the implementation of measures to prevent fund misappropriation.

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