IMF frees $1b for Pakistan, approves new $1.4b loan

The International Monetary Fund executive board approved on Friday a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash, reports Reuters.

"Pakistan's policy efforts under the (program) have already delivered significant progress in stabilizing the economy and rebuilding confidence, amidst a challenging global environment," the IMF said in a statement.

The review approval brings disbursements to $2 billion within the $7 billion program.

India has asked the IMF for a broader review of its loans to Pakistan, as tension builds between the nuclear-armed neighbors.

At Friday's IMF board meeting, India told the IMF that the Pakistan program raised concerns about the "possibility of misuse of debt-financing funds for state-sponsored cross-border terrorism."