The decision follows New Delhi's request that the IMF examine its loans to Pakistan, pointing out that the country continues to fund cross-border terrorism against India.
On Friday, the government of Pakistan announced that the executive board of the International Monetary Fund (IMF) had accepted the first review of its $7 billion program, releasing $1 billion in cash for the nation embroiled in a war with India after the Pahalgam terror assault on April 22.

The Prime Minister Office (PMO) released a statement saying, "Prime Minister Muhammad Shehbaz Sharif is pleased that the International Monetary Fund (IMF) approved a $1 billion tranche for Pakistan."

With the most recent approval, the $7 billion program's cumulative disbursements now amount $2 billion. The most recent punishment follows New Delhi's request that the IMF examine its loans to Pakistan, pointing to the country's ongoing encouragement of cross-border terrorism against India.

According to Reuters, before tensions between New Delhi and Islamabad increased, the IMF and the Pakistani government struck a staff-level agreement for the bailout program. Following the clearance, the agency requested a remark from the worldwide organization, but received no response.

The IMF board, which met on Friday to assess the Extended Fund Facility (EFF) financing program (worth USD 1 billion) and examine a new Resilience and Sustainability Facility (RSF) lending program (worth USD 1.3 billion) for Pakistan, received a protest from the Union government.