The International Monetary Fund (IMF) has clearly denied claims from Indian media suggesting that Pakistan might use IMF loan money for military action against India.

IMF spokesperson Julie Kozack explained in a recent press meeting that the money given to Pakistan through the Extended Fund Facility (EFF) is only added to Pakistan’s central bank reserves. It’s not meant for government spending and definitely not for military use. “The funds are to help fix Pakistan’s balance of payments and cannot be used for defense,” she said.

Kozack also explained that strict rules are in place to make sure the money is used correctly. These include banning the central bank from giving loans to the government, requiring Pakistan to increase its financial reserves, and making sure the country follows major economic reforms. If Pakistan breaks these rules, it could lose future IMF support.

India had raised concerns that Pakistan might use the funds to rebuild areas connected to cross-border tensions. But the IMF made it clear that their program doesn’t allow such use and has checks to prevent it.

Kozack also showed concern over the recent conflicts between Pakistan and India, expressing sympathy for those affected. She said the IMF hopes both countries can find a peaceful way forward.

She also gave a timeline of the IMF’s current program with Pakistan. It was approved in September 2024, and the first review was finished in March 2025. The IMF board officially approved the review on May 9, which led to the release of new funds.

Finally, Kozack mentioned that IMF board decisions are usually made by agreement, and although the exact vote numbers aren’t made public, enough support was there to move forward with Pakistan’s review.