On May 9, the International Monetary Fund (IMF) approved Pakistan’s 24th bailout, releasing over $2.3 billion through various funding programs. This decision came despite India’s strong objections, which were triggered by Pakistan’s alleged role in the April 22 Pahalgam terrorist attack that killed 26 civilians. India abstained from the vote, warning that the funds could indirectly support state-sponsored terrorism. Yet, the IMF prioritized regional stability over these concerns.
Since 1958, Pakistan has received over $28 billion from the IMF. Critics argue that these bailouts have become routine — more about postponing defaults than creating genuine reforms. Former central bank governor Murtaza Syed refers to this as “extend and pretend”: extending loans while pretending reforms will follow.
Pakistan’s financial health remains dire. The country spends 65% of its tax revenue just on interest payments, leaving little for essentials like education (1.7%) and healthcare (0.8%). Its Human Development Index is low, child mortality is high, and despite repeated aid, corruption and mismanagement prevent progress. World Bank auditsshow that nearly 40% of development funds are wasted or misused.
A broader concern arises: Is global aid sustaining economic recovery, or enabling chronic dysfunction in strategically important states? The world must now question whether geopolitical security justifies continually financing broken systems.
