The International Monetary Fund (IMF) approved a key loan review for Pakistan, unlocking $1 billion and endorsing a fresh $1.4 billion bailout package, despite abstentions led by India amid heightened regional tensions.

The approval follows Pakistan’s recovery from near-default in 2023, when a political crisis deepened economic distress. A $7 billion IMF bailout last year marked its 24th arrangement with the lender since 1958.

In a statement, the IMF said Pakistan’s authorities had shown “strong program implementation,” helping stabilise finances and restore external confidence.

India, which represents Bangladesh, Bhutan, and Sri Lanka on the IMF board, abstained from the decision. According to AFP, all four countries refrained from backing the program, aligning with New Delhi’s stance.

India’s finance ministry raised concerns about Pakistan’s “poor track record” in IMF programs and warned of possible misuse of funds, alleging potential support for “state-sponsored cross-border terrorism.”