New Delhi, May 10 (IANS). India on Friday opposed providing financial assistance to Pakistan at the International Monetary Fund (IMF), and decided to keep itself aside from voting.
In fact, the Executive Board of IMF has the right to approve the proposal to give an economic package to a country. At the board meeting on Friday, India opposed giving another installment of assistance to Pakistan and kept itself as a flexibility and stability facility (RSF) loan program on voting from voting on the proposal to give a new loan of $ 1.3 billion to Pakistan.
The IMF Executive Board consists of 25 directors who represent groups in member countries or countries. This looks at daily operations cases including loan acceptance. In September last year, the IMF Executive Board approved an extended system of 37 months in an amount of 5.32 billion Singapore dollars (ie about seven billion dollars) under the EFF for Pakistan. Although one billion dollars were distributed immediately, the meeting on Friday was called to review the funding program for Pakistan.
Unlike the United Nations, where each country has a vote, the voting power of the IMF reflects the economic size of each member. For example, countries like the US have unequally high voting stake. Thus, to simplify things, IMF usually decides with consensus.
In cases where voting is required, the system does not allow formal “negative” votes. Directors can either vote on the side or remain absent. There is no provision to vote against the loan or proposal. This is the reason why India kept itself separate from voting to protest.
In the meeting, India’s representative Parameswaran Iyer said, “While many member countries expressed concern that money received from international financial institutions like IMF can be misused for military and state -sponsored terrorist objectives, IMF’s reaction is surrounded by procedural and technical formalities. Prices should be properly taken into consideration. “
He highlighted that Pakistan has been taking loans from the IMF for a long time, which has a very poor track record of implementation and adherence to the program conditions of IMF.
-IANS
SCH/Ekde
