The world has an uncanny way of looking the other way when it comes to its strategic interests. The latest example? The IMF’s approval of a massive loan to Pakistan. With tensions between India and Pakistan rising, the financial backing Pakistan received from global powers raises a crucial question: What are the long-term implications of supporting a nation that has, for decades, been accused of harboring and promoting terrorism, many of which have directly impacted its neighbor? The stakes are higher—because the money will likely be funneled into a military machine that has repeatedly engaged in proxy wars. And for what? Strategic alliances, economic interests, or something deeper and less visible? The global community might say it’s about stability. But who exactly benefits from this stability? And who bears the cost?
Seeing the Bigger Picture or Turning a Blind Eye?
Pakistan's Prime Minister, Shehbaz Sharif, acknowledged the "tremendous support" of Saudi Arabia, China, and the United Arab Emirates (UAE) in securing the loan. These nations provided crucial financial assurances and bilateral support, which were instrumental in meeting the IMF's requirements for the loan approval. The IMF's 24-member Executive Board, representing all 190 member countries, approves loans. Voting power on the Board is weighted based on each country's financial contribution (quota) to the IMF. Countries with larger quotas, such as the United States (holding approximately 16.5% of the vote), Japan, China, Germany, and the United Kingdom, have greater influence over decisions. The U.S., in particular, can effectively veto major decisions requiring an 85% majority.
1. China
China supports Pakistan for regional influence, ignoring terrorism concerns.
To no one’s surprise, China is one of the leading backers of Pakistan’s financial aid. This isn’t charity—it’s calculated. China’s interests in Pakistan have long been intertwined with its geopolitical goals, particularly through the China-Pakistan Economic Corridor (CPEC). It’s more than just roads and pipelines; it’s about ensuring a regional ally in South Asia. China has long seen Pakistan as a counterbalance to India, a crucial ally in its quest to expand its influence. And while the world watches Pakistan’s internal policies with growing skepticism, China remains steadfast in its support.
But here’s the uncomfortable truth: China knows full well that this loan, and the financial aid that accompanies it, is not simply going to benefit Pakistan’s civilians. It’s going to fuel the machinery of a state that has, at various times, used its resources to stir conflict. Does China care about that? Hardly. As long as Pakistan remains stable enough to serve its strategic interests, the rest is secondary.
2. Saudi Arabia
Saudi Arabia backs Pakistan for political and ideological reasons.
Next up is Saudi Arabia, another country that has historically been a major donor to Pakistan. The reasons are somewhat clearer. The two countries share a deep ideological and political bond, with Pakistan often positioned as a crucial ally in the broader Sunni Muslim world. Saudi Arabia’s financial support to Pakistan, including the IMF loan, isn’t just a matter of charity or diplomacy; it’s an investment in maintaining its influence in the region, especially given the growing clout of Iran.
What’s often not talked about in public circles is that this support, while framed as a peacekeeping measure, comes with its own set of contradictions. Saudi Arabia, despite its criticisms of terrorism globally, continues to support Pakistan—a country that has had connections to groups that destabilize the region. By backing this loan, Saudi Arabia chooses its alliances over any moral considerations of how this money will be used.
3. United Arab Emirates (UAE)
UAE aids Pakistan for regional stability, despite terrorism ties.
Now, let’s talk about the UAE—one that often flies under the radar but plays an incredibly important role in this whole situation. The UAE has long been one of Pakistan’s most reliable financial backers, and that relationship shows no signs of slowing down. Much like Saudi Arabia and Qatar, the UAE has deep strategic and economic interests in Pakistan. Its support for the IMF loan is not just about charity; it’s about maintaining a stable regional partner in a volatile neighborhood.
But here’s where things get a bit sticky. The UAE has positioned itself as a voice of moderation in the Middle East, advocating for peace and stability. Yet, its financial backing of Pakistan, a nation with a fraught history of supporting terrorism, raises some serious questions about its true commitments to regional peace. The UAE has undoubtedly worked to secure its own political and economic interests in the region—but at what cost?
The Long-Term Consequences
When we look at the big picture, the world’s continued financial support to Pakistan, especially in the face of rising tensions with India, cannot be seen in isolation. These are not just loans being handed out for the sake of economic recovery. They are investments in geopolitical strategies, often at the cost of long-term stability. They are acts of diplomacy that conveniently overlook the elephant in the room: the continued links between Pakistan and groups that have historically fueled terrorism and violence.
The true cost of these decisions isn’t simply economic—it’s human. Every dollar sent to Pakistan, every financial package approved, is one more step towards cementing a balance of power that values strategic interests over human lives. While global powers may speak the language of diplomacy and economic aid, the truth is that money isn’t always used for peace. And the consequences of turning a blind eye to this reality may be more devastating than anyone is willing to admit.
