FirstUp: IMF to review Pakistan’s $1.3 billion package amid tensions with India and other news of the day

The International Monetary Fund (IMF) is set to meet today to consider whether to approve Pakistan’s new $1.3 billion deal under its climate resilience loan programme. The meeting comes as tensions between Pakistan and India continue to rise following ‘Operation Sindoor’.

Today also includes several other key developments.

In Russia, a “Victory Day” military parade will take place to celebrate 80 years since the Allied victory over Nazi Germany in World War II.

Meanwhile, French President Emmanuel Macron will host Polish Prime Minister Donald Tusk in France. The two leaders are due to sign a “friendship treaty”.

Here’s a look at these events:

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IMF to review Pakistan’s $1.3 billion deal

The International Monetary Fund (IMF) is set to meet today to consider Pakistan’s staff-level agreement for a $1.3 billion loan under a climate resilience programme, as tensions grow between Islamabad and New Delhi.

India is expected to raise objections and vote against the aid package being given to Pakistan.

The IMF had announced on March 25 that it had reached a staff-level agreement with Pakistan under a new 28-month Resilience and Sustainability Facility (RSF), allowing the country to access $1.3 billion.

If the board gives the green light, $1 billion will be released straight away under the agreement Pakistan secured in 2024.

The current 37-month Extended Fund Facility (EFF) programme involves six performance reviews. The release of the next $1 billion depends on the outcome of one of these assessments.

India’s opposition is expected in light of recent tensions following ‘ Operation Sindoor’, when Indian forces carried out targeted strikes in Pakistan and Pakistan-occupied Kashmir on Wednesday.

The strikes came after the deadly attack in Pahalgam, where 26 civilians in a tourist group were killed by terrorists. Indian intelligence said evidence from encrypted messages and digital data linked the incident to groups based in Pakistan.

Devices recovered from the scene are said to carry traces similar to previous attacks led by Lashkar-e-Taiba, supporting India’s view that the Pahalgam incident was not a one-off but part of a broader, supported cross-border terror setup.

Will the IMF go ahead with the Pakistan loan, despite the tensions and India’s accusation that Islamabad backs cross-border terrorism? The answer may come today.

Russia’s “Victory Day” military parade

Russia will hold its “Victory Day” military parade today to celebrate 80 years since the Allied victory over Nazi Germany in World War II.

The country will host leaders from China, Brazil and several other nations on Friday as part of the celebrations.

Victory Day, held each year in Russia on 9 May, is the country’s most important secular holiday. A large military parade through Red Square and other ceremonies are held to show Moscow’s strength and reflect the alliances it has built as it seeks to counter Western influence during the ongoing war in Ukraine, now in its third year.

Russian President Vladimir Putin referred to Chinese President Xi Jinping as “our main guest” for the Victory Day events while speaking with China’s foreign minister ahead of Xi’s visit.

Putin said he and Xi plan to hold talks covering both their countries’ relationship and wider international matters during their summit in Moscow.

Xi arrived on Wednesday for a four-day state visit. According to Putin’s foreign policy adviser, Yuri Ushakov, they are expected to discuss trade, Russian energy exports to China, and joint efforts within the BRICS group, which started with Brazil, Russia, India, China and South Africa and has since expanded to include more members.

Russia has also maintained steady support for China on issues involving Taiwan.

Prime Minister Narendra Modi, another close ally invited by Putin, had been expected in Moscow. However, he cancelled his visit due to rising tensions with Pakistan following the Pahalgam terror attack and the latest escalation after Operation Sindoor.

Notably, Russia has backed India in the aftermath, condemning the Kashmir attack and affirming its pledge to work with New Delhi against all forms of terrorism. Putin called the incident a “brutal crime” with “no justification whatsoever.”

France, Poland to sign ‘friendship treaty’

French President Emmanuel Macron will welcome Polish Prime Minister Donald Tusk to France today, where the two will sign a “friendship treaty”.

Poland, a strong supporter of neighbouring Ukraine, has raised concerns that Russia could attempt to disrupt its presidential election on May 18 through cyberattacks and false information.

On Monday, Putin announced a temporary pause in military operations with Ukraine from May 8-10 to coincide with Russia’s World War II commemorations. The move drew criticism from Kyiv, which called for an immediate and lasting ceasefire.

“I will welcome the Polish prime minister to Nancy on 9 May to sign a friendship treaty, which is a historic first between Poland and France,” Macron said.

Nancy holds symbolic value since in 1736, the exiled Polish king Stanisław Leszczyński became Duke of Lorraine, marking an early link between the two countries.

The signing of the treaty on May 9 will take place on the same day Putin leads the large Victory Day parade in Moscow, celebrating Russia’s role in the Second World War.

With inputs from agencies