• UGI USER
  • Mar 07, 2024
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ENSURE PAK. DOES NOT DIVERT LOANS TO FOOT DEFENCE BILLS:INDIA TO IMF:

Why in the news?

  • India urges IMF to closely monitor funds to Pakistan, ensuring they’re not diverted to defence or external debt repayment.
  • Indian representative Krishna Subramanian conveyed this stance during IMF board review of Pakistan’s ongoing $3 billion Stand-By Arrangement.
source:theeconomist

Loan Review and India’s Abstention:

  • India abstained from voting on loans to Pakistan, including the recent $3 billion Stand-By Arrangement approved in July.
  • During January’s loan review, India again abstained from voting, prompting the IMF to release a $700 million tranche to Pakistan.
About The International Monetary Fund (IMF):

The International Monetary Fund (IMF) is an organisation of 190 member countries.

Objectives of IMF:

  • Foster global monetary cooperation.
  • Secure financial stability.
  • Facilitate international trade.
  • Promote high employment and sustainable economic growth.
  • Reduce poverty worldwide.
  • Provide macroeconomic growth.
  • Offer policy advice and financing for developing countries.
  • Promote exchange rate stability and an international payment system.