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ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Monday the International Monetary Fund (IMF) had approved a $1 billion disbursement for Pakistan on “merit” despite India leaving “no stone unturned” to convince the lender to review the payout.

Pakistan secured a $7 billion bailout program from the IMF last year and was granted a new $1.3 billion climate resilience loan in March. Earlier this month, Pakistan received the second tranche of special drawing rights worth $1,023 million from the IMF under the extended fund facility (EFF) program, bringing disbursements to $2 billion within the latest bailout. 

The program is critical to the $350 billion economy and Pakistan has said it has stabilized under the bailout that helped it stave off a default threat.

India raised concerns with the IMF on its loans to Pakistan, asking for a review earlier this month as tensions soared after an attack on Hindu tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad — an accusation it denies. The tensions erupted into military fighting as the two nuclear-armed nations launched missiles and drones deep into each other’s territories and exchanged gunfire on their de facto border, the Line of Control, until a ceasefire was announced on May 10. Nearly 70 people combined were killed on both sides of the border.

“Our armed forces and political leadership, the way they stood up against the [Indian] aggression, the entire nation has celebrated it, and rightly so,” Aurangzeb told reporters in Islamabad. 

“At the same time, there was no stone left unturned in terms of ensuring that the [IMF board] meeting doesn’t happen and if the meeting does happen, then these items are not on the agenda, whether it’s the second tranche [of $7 billion loan] under the EFF or the RSF [Resilience and Sustainability Facility] of $1.3 billion in terms of our climate resilient facility.”

The finance minister said he was thankful that the IMF went on to discuss and decide the Pakistan case “on merit.”

Last week, India also announced plans to approach the global financial watchdog, the Financial Action Task Force (FATF), to place Pakistan on its grey list and said it would oppose a World Bank plan to focus $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.

Pakistan was removed from the FATF grey list in 2022, receiving a clean bill of health on terror financing, which significantly improved its standing with international lenders, crucial for its crisis-hit economy.
 

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif made a peace offer to India during a visit to Tehran today, Monday, saying Islamabad was ready to hold talks on water sharing, countering terrorism and the Kashmir dispute if New Delhi was “serious.”

The two nuclear-armed nations have just emerged from their worst military conflict in decades earlier this month, when they launched missiles and drones deep into each other’s territories and exchanged gunfire on their de facto border, the Line of Control, until a ceasefire was announced on May 10. Nearly 70 people combined were killed on both sides of the border. 

India had hit Pakistan first, saying it targeted “terrorist infrastructure” in response to an April 22 militant attack in Indian-administered Kashmir that New Delhi accused Islamabad of being behind — a charge it denies. After the attack, India also unilaterally suspended the 1960 Indus Waters Treaty that governs the sharing of river waters between the two neighbors. 

The Muslim-majority Himalayan region of Kashmir is claimed by both India and Pakistan and has been the focus of several wars and diplomatic stand-offs.

“We wanted peace, we want peace and we will work for peace in the region through talks, on the table, and resolve our outstanding issues,” Sharif said in a joint press conference with Iranian President Masoud Pezeshkian.

Among the issues Pakistan wanted to discuss, the PM said, was the Kashmir conflict, which he said needed to be resolved according to several resolutions passed by the UN Security Council, including one which says a plebiscite should be held to determine the future of the mostly Muslim region of Kashmir.

“We are ready to talk for the sake of peace on water issues with our neighbor, we are ready to talk to promote trade and also counter terrorism if they are serious, but if they choose to remain the aggressor then we shall defend our country and territory,” Sharif said. 

“But if they accept my offer of peace, then we will show that we really want peace, seriously and sincerely.”

The Iranian president also welcomed the ceasefire established between Pakistan and India. 

“Undoubtedly, settling differences through dialogue and through a peaceful manner is the precondition for sustainable peace and development at the national, regional and international levels,” Pezeshkian said. 

“We believe that in the region, sustaining the sustainable security and trying to create friendly relations with our neighboring countries is among the common policies of Iran and Pakistan.”

REGIONAL DIPLOMACY TOUR

Sharif arrived in Iran today, Monday, after a visit to Turkiye as part of a regional diplomacy tour following the latest military standoff with India. 

Iran’s foreign minister Abbas Araqchi had called for restraint and visited both nations following India’s first strikes on Pakistan on May 7, setting off nearly four days of fighting.

On Sunday, Sharif reached Turkiye as the first stop in the diplomacy tour to nations that were either supportive of Islamabad during the latest crisis with India, or that helped mediate the conflict. After Iran, he will go onwards to Tajikistan and Azerbaijan.

Turkish President Tayyip Erdogan spoke by phone with Sharif on May 7 to convey his solidarity after India first hit Pakistan and Azad Kashmir with missiles. Leaders from the two nations had several contacts subsequently and it is widely believed that Turkiye played an important role, besides the US, UAE and ������Ƶ, in convincing India and Pakistan to back off and agree to a ceasefire. The two nations have strong ties, both being largely Muslim countries and sharing historical links.

Iran’s leadership also offered to mediate the conflict and there were several contacts between its foreign minister and the Pakistani PM and other leaders.