As IMF gives $1bn loan to Pakistan, Congress evokes Indira Gandhi’s 1981 triumph

NEW DELHI: Congress leader Jairam Ramesh on Sunday invoked a key moment from India's history to praise former Prime Minister Indira Gandhi's leadership, recalling her success in securing a $5.8 billion loan from the International Monetary Fund (IMF) in 1981 despite opposition from the United States.

In a post on X, he wrote, "On Nov 9, 1981, the IMF approved a $5.8 billion loan to India. The US had strong objections to it and had abstained from the Executive Board meeting. But Indira Gandhi was able to persuade the IMF that the loan was necessary for India to be able to deal with the tripling of oil prices."

He further cited a follow-up moment in 1984, "On Feb 29, 1984, when Pranab Mukherjee presented the Budget, she had got him to announce that India had concluded the IMF programme successfully and that it was NOT drawing about $1.3 billion of the amount approved. This is perhaps unique in the annals of IMF's history," he added.

Ramesh's post came after the IMF approved a $1 billion disbursement to Pakistan under the Extended Fund Facility (EFF), following the successful completion of the programme's first review.

India, however, has opposed IMF financial support to Pakistan, citing its continued sponsorship of cross-border terrorism. New Delhi has warned that such assistance poses reputational risks to global institutions and undermines international norms.

India abstained from the IMF vote not due to a lack of opposition, but because IMF rules do not allow a formal "no" vote.

The IMF, in its statement on X, said, "IMF Board approved the first review of Pakistan’s economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong programme implementation which has contributed to continuing economic recovery."

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