Explained: India's abstention during IMF vote on Pakistan loan
India on Friday strongly opposed further financial assistance from the International Monetary Fund (IMF) to Pakistan at its executive board meeting in Washington, DC
- NEW DELHI — India on Friday strongly opposed further financial assistance from
the International Monetary Fund (IMF) to Pakistan at its executive board
meeting in Washington, DC.
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- The IMF Executive Board consists of 25 Directors who
represent member countries or groups of countries. It handles daily operational
matters, including loan approvals.
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- Unlike in the United Nations, where each country has one
vote, IMF voting power reflects the economic size of each member. For instance,
countries like the United States hold a disproportionately high voting share.
Thus, to simplify things, the IMF typically makes decisions by consensus.
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- In cases where a vote is required, the system does not
allow a formal "no" vote. Directors can either vote in favour or
abstain. There is no provision to vote against a loan or proposal.
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- According to government sources, India abstained from the
IMF vote on approving a loan to Pakistan not due to a lack of opposition, but
because IMF rules do not permit a formal “no” vote.
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- By abstaining, India conveyed its strong dissent within
the constraints of the IMF’s voting system and used the opportunity to formally
record its objections.
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- India questioned the effectiveness of ongoing IMF
assistance, noting that Pakistan has received support in 28 of the past 35
years including four programmes in just the last five without meaningful or
lasting reform, sourced said.
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- India strongly highlighted the Pakistani military's
continued dominance in economic affairs, which undermines transparency,
civilian oversight, and sustainable reform.
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- India firmly opposed providing funds to a country that
continues to sponsor cross-border terrorism, warning that such support carries
reputational risks for global institutions and undermines international norms,
according to government sources.
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- The country abstained from voting on extending a fresh
$1.3 billion IMF loan to Pakistan under the Resilience and Sustainability
Facility (RSF) lending programme at the meeting.
