The State Bank of Pakistan announced that these funds will reflect in the country’s foreign exchange reserves. (AI image)

Pakistan has obtained the second instalment of special drawing rights amounting to 760 million ($1,023 million) from the International Monetary Fund (IMF) through the extended fund facility programme.

The State Bank of Pakistan announced on X (formerly Twitter) that these funds will be incorporated into its foreign exchange reserves for the week ending May 16, according to a Reuters report.Last week, India abstained from voting at the International Monetary Fund’s Executive Board meeting, expressing serious concerns about IMF bailout packages for Pakistan. India highlighted Pakistan’s status as a long-term IMF borrower with poor compliance regarding programme conditions. The substantial financial support has led to Pakistan amassing significant debt, effectively making it a ‘too big to fail debtor’ for the IMF, India said.Also Read | India-Pakistan ceasefire: How India’s punitive measures will continue to hit Pakistan’s fragile economy – explainedDuring the review of Pakistan’s Extended Fund Facility (EFF) programme ($1 billion) and assessment of a new Resilience and Sustainability Facility (RSF) programme ($1.3 billion), India raised doubts about the efficacy of IMF support, given Pakistan’s poor track record. India also raised concerns about the possible use of debt financing resources to support cross-border terrorism through state mechanisms.India highlighted how Pakistan’s military’s deep engagement in economic affairs poses substantial risks to policy execution and long-term reforms. Whilst a civilian government holds office, the armed forces continue to wield considerable control over the nation’s political and economic spheres, according to India’s statement.A UN assessment from 2021 recognised military-linked businesses as Pakistan’s ‘largest conglomerate’. The situation has grown more pronounced with the army now holding a pivotal role in Pakistan’s Special Investment Facilitation Council, India further noted.Also Read | Operation Sindoor: Can Pakistan economically afford a protracted conflict with India as tensions escalate? Here’s a reality check