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.

India chose to abstain from the vote, expressing deep concerns over the move. The Indian government conveyed strong reservations, raising doubts over Pakistans track record of utilising such aid appropriately.

The IMF would immediately release the $1 billion second loan tranche under the EFF while the $1.3 billion would be disbursed over a period of next 28 months. With the approval of the $1 billion second tranche due to Pakistan's better fiscal performance, the total disbursements under the EFF would reach $2.1 billion.