International Monetary Fund (IMF) Director of Communications, Julie Kozack, firmly responded to an Indian journalist’s provocative question regarding funding for Pakistan during the press briefing
During a press briefing, Indian journalist had asked Kozack whether Pakistan could use IMF funds to support cross-border terrorism.
Julie Kozack categorically rejected the notion, stating that the IMF loan program is strictly for supporting Pakistan’s foreign exchange reserves and not for budgetary support or any government expenditure.
She clarified that the IMF loan disbursement is meant to stabilize Pakistan’s balance of payments and is deposited directly into the State Bank of Pakistan’s reserves, not the federal treasury.
Julie Kozack further said that the IMF’s conditions prohibit the Government of Pakistan from borrowing from the central bank, and current borrowing from the State Bank stands at zero.
