The International Monetary Fund expects the next funding review for Pakistan to take place in the second half of 2025 and will continue discussions with authorities on budget terms for the 2026 financial year, it said in a statement on Friday, according to Reuters.
The IMF's key priority remains anchoring inflation within the central bank’s medium-term target range of 5–7%, the statement said.
Pakistani authorities, meanwhile, reaffirmed their commitment to fiscal consolidation, aiming for a primary surplus of 1.6% of GDP in FY2026, Reuters reported.
The IMF approved $1 billion in fresh aid to Pakistan after confirming it met all Extended Fund Facility targets in a recent review, despite India's concerns about misuse for terrorism.
Meanwhile, India is also planning to highlight Pakistan’s ongoing support for terrorism and its use of multilateral funds for arms procurement, aiming to push for Islamabad’s reinstatement on the global money laundering and terror financing watchdog FATF’s ‘grey list’ and block World Bank funding.
On April 22, Pakistan-trained terrorists killed 26 people in Pahalgam, Kashmir. India has repeatedly accused Pakistan of providing safe haven to designated terrorists, a claim reinforced when senior Pakistani military officials attended the funerals of terrorists killed in Indian military operations on May 7.
The Financial Action Task Force (FATF) sets international standards to combat money laundering and terrorist financing. Its Asia Pacific Group (APG) will meet on August 25, where India is expected to present its case. The next FATF plenary meeting is scheduled for October 20.
Currently, 25 countries remain on FATF’s ‘grey list’ for failing to address key deficiencies in countering money laundering, terrorist financing, and proliferation financing. Pakistan has a history of being added and removed from this list multiple times since 2008, with the most recent removal in October 2022. FATF urged Pakistan to continue improving its anti-money laundering and counter-terror financing systems in cooperation with APG.
Separately, India will oppose upcoming World Bank funding to Pakistan, as it previously did with the IMF, arguing that Islamabad has historically diverted such funds to buy arms and ammunition.
The IMF's key priority remains anchoring inflation within the central bank’s medium-term target range of 5–7%, the statement said.
Pakistani authorities, meanwhile, reaffirmed their commitment to fiscal consolidation, aiming for a primary surplus of 1.6% of GDP in FY2026, Reuters reported.
The IMF approved $1 billion in fresh aid to Pakistan after confirming it met all Extended Fund Facility targets in a recent review, despite India's concerns about misuse for terrorism.
Meanwhile, India is also planning to highlight Pakistan’s ongoing support for terrorism and its use of multilateral funds for arms procurement, aiming to push for Islamabad’s reinstatement on the global money laundering and terror financing watchdog FATF’s ‘grey list’ and block World Bank funding.
On April 22, Pakistan-trained terrorists killed 26 people in Pahalgam, Kashmir. India has repeatedly accused Pakistan of providing safe haven to designated terrorists, a claim reinforced when senior Pakistani military officials attended the funerals of terrorists killed in Indian military operations on May 7.
The Financial Action Task Force (FATF) sets international standards to combat money laundering and terrorist financing. Its Asia Pacific Group (APG) will meet on August 25, where India is expected to present its case. The next FATF plenary meeting is scheduled for October 20.
Currently, 25 countries remain on FATF’s ‘grey list’ for failing to address key deficiencies in countering money laundering, terrorist financing, and proliferation financing. Pakistan has a history of being added and removed from this list multiple times since 2008, with the most recent removal in October 2022. FATF urged Pakistan to continue improving its anti-money laundering and counter-terror financing systems in cooperation with APG.
Separately, India will oppose upcoming World Bank funding to Pakistan, as it previously did with the IMF, arguing that Islamabad has historically diverted such funds to buy arms and ammunition.
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