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.

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.

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.