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India has announced an interim Budget of $14 billion for fiscal 2024-25 for the Union Territory of Jammu and Kashmir, around 4.5 times more than the amount Pakistan is seeking for its whole nation from the International Monetary Fund (IMF) to come out of ongoing economic troubles. The Washington-based financial body has approved a $3 billion bailout package for cash-strapped Pakistan. 

Finance Minister Nirmala Sitharaman unveiled the interim budget on a day Pakistan marked it as “Kashmir Solidarity Day”. The budget proposal represented a substantial commitment to the economic development of Jammu and Kashmir. 

Sitharaman said the crucial reforms undertaken in 2019 enabled “path-breaking” measures by the Union Territory Government to decentralize governance structure, promote inclusive development, upscale revenue generation, and step up infrastructure development.

“The Government is maintaining law and order to ensure security while simultaneously implementing initiatives for economic and social development. The Government has adopted a policy of zero tolerance against terrorism,” the finance minister said. 

She added that security forces are taking effective and continuous action in countering terrorism due to which the situation has significantly improved. 

IMF approved second tranche of $3 billion package for Pakistan

In January, the IMF on approved a USD 700 million loan tranche for cash-strapped Pakistan under an existing USD 3 billion bailout package after completing its first review of the country’s economic reform program.

The Ministry of Finance announced the completion of the first review by the Executive Board of the Washington-based International Monetary Fund (IMF), the Dawn newspaper reported.

A mission from the Washington-based global lender reviewed the country’s economic performance during the first three months of the fiscal year – from July to September, 2023.

The completion of the review allows for an immediate disbursement of USD 700 million in Special Drawing Rights (SDR), bringing the total disbursements under the Stand-By Arrangement (SBA) to USD 1.9 billion, the ministry said in a statement.

The initial tranche of USD 1.2 billion of the current IMF program –amounting to USD 3 billion– was released in July 2023. The other two tranches were subject to reviews, the first of which has been completed, while the other one will be in December. 

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

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Published: 06 Feb 2024, 11:09 AM IST

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