Met all conditions: IMF justifies $1 billion bailout to debt-ridden Pakistan

The International Monetary Fund explained Friday the Pakistan is not allowed to divert financial assistance provided to its central bank under the Extended Fund Facility, and that there are safeguards to check misuse, including unauthorised government disbursement or lending.

IMF financing, Comms chief Julie Kozack told reporters Thursday, is expressly for resolving balance of payments problems, and deviation from established programme conditions - which include structural conditions like improving fiscal management - will impact future reviews.

She also pointed to IMF protocol, under which the Executive Board 'conducts periodic reviews of lending programmes... to check if policy changes are needed to bring it back on track'.