Daily Current Affairs and News Analysis 10-05-2025

Songar Drones

Pakistan Drone Incursion: Pakistan reportedly deployed 300-400 Songar drones across 36 locations from Leh to Sir Creek.
Origin of Songar Drones: Developed by Turkey’s Asisguard, Songar is considered Turkey’s first indigenous armed drone system.
Turkish Armed Forces Use: Officially inducted into the Turkish Armed Forces (TAF) in February 2020.
Technical Specs: 140 cm rotor-to-rotor width, 45 kg max takeoff weight, 35-minute flight time (without payload), 10 km range, 3000 m max altitude (above mean sea level), autonomous and manual flight modes.
Key Features: Real-time video, dual cameras, GPS/GLONASS navigation, return-to-base function.
Weapon Variants: 5.56×45 mm assault rifle, 2×40 mm grenade launcher, 6×40 mm drum grenade launcher, 3×81 mm mortar gripper, 8×tear/smoke grenade launcher.
Safety Protocols: Multi-layered safety protocols require operator authorization before firing.
Turkey-Pakistan Defense Cooperation: Pakistan’s acquisition and use of Songar drones highlight its strong defense ties with Turkey.
Turkish Support: Turkish President Erdogan expressed solidarity with Pakistan amid tensions with India.
Growing Partnership: Turkey and Pakistan have deepened defense cooperation through deals, joint exercises, and technology transfer. Pakistan also collaborates with Turkish drone manufacturer Baykar.
Songar Specs: 145cm rotor-to-rotor width and 70cm height, 5.56x45mm NATO rounds, a 200 round ammo capacity, single and 15-round burst modes, and a gun stabilization system.
Camera System: Pilot camera with 10x zoom and gun-mounted camera capable of transmitting video and real-time images.
Target precision: Capable of hitting targets within a 15-cm area from a distance of 200 m. The drone can ascend to an altitude of up to 2,800 m at mean sea level and 400 m above ground level.

Women in Cooperatives

Low Representation: Despite India’s large cooperative movement (8.5 lakh), women-only cooperatives are only 2.52% (NITI Aayog, 2023).
International Year of Cooperatives: UN declares 2025 as the International Year of Cooperatives, themed “Cooperatives Build a Better World”. Launched in India in November 2024.
Empowerment Pathway: Cooperatives empower women socio-economically through income generation, skill development, and inclusive governance.
Successful Models: SEWA, Amul, and Lijjat Papad demonstrate the success of cooperatives in fostering women’s economic self-reliance.
Access to Services: Women’s cooperatives improve access to credit, banking, healthcare, and education.
Challenges: Many women’s cooperatives are dormant (around 50%) due to inadequate support, limited financial linkages, training, and market access.
Time Poverty: Women spend significantly more time on unpaid domestic work, limiting their participation.
Underrepresentation: Women hold only 26% of positions in mixed cooperatives and even fewer leadership roles.
Cultural Norms: Patriarchy and societal expectations hinder women’s autonomy and participation.
Support Measures: Reviving dormant cooperatives, providing dedicated funding, promoting cluster-based models, and ensuring digital platforms for marketing and training.
Policy Integration: Convergence between Ministries of Cooperation, Women and Child Development, MSME, and Agriculture is crucial.
New Guidelines: Mandate reservation of two seats for women on the board of multi-state cooperative societies and the presence of women directors on the board of primary agricultural credit societies.
Dormant Cooperatives The unusually high number of dormant women’s cooperatives (11,869), demonstrates that women face barriers in maintaining and sustaining them.

US Watch on India

India Placed on ‘Priority Watch List’ (PWL): USTR’s 2025 Special 301 Report puts India on the PWL for persistent IPR protection and enforcement challenges.
USTR Concerns: India’s progress on IP protection is inconsistent, with long-standing concerns remaining unaddressed, despite efforts to strengthen the IP regime.
IPR Challenges: India remains a challenging major economy for IPR protection and enforcement.
Potential Impact: PWL listing could impact trade talks with the US; USTR may initiate trade investigations or impose sanctions if no improvement.
India’s Stance: India maintains its IP laws comply with WTO TRIPS agreement and views the report as unilateral pressure.
Patent Concerns: Patent issues, including revocations, discretionary patentability criteria, long waiting periods, and excessive reporting, are specific concerns. Vagueness in interpreting the Indian Patents Act also raised.
Customs Duties: High customs duties on IP-intensive products like ICT, solar, medical devices, pharma, and capital goods cited.
Enforcement Inadequate: Despite improvements in IP office operations, overall IP enforcement remains inadequate.
Bilateral Trade Context: Report coincides with India-U.S. trade negotiations aiming for $500 billion commerce by 2030; US wants to reduce its trade deficit.
Industry Perceptions: Concerns based on American industry’s perception of India’s IP protection level.
Section 3(d): Concerns related to section 3(d) of the patent act, and pharmaceutical patent disputes persist.
Other Countries: China, Indonesia, Russia, Argentina, and Venezuela are also on the PWL; Pakistan and Turkey are on the watch list.

PMFME Scheme

Bihar Leads in PMFME Implementation: Bihar secured the top rank nationally for successfully implementing the PMFME scheme in FY 2024-25. This success is attributed to effective execution of the scheme, promoting entrepreneurship and small-scale industries.
Loan Disbursement Success: Loan approval has been granted to 10,296 applicants in Bihar with loans disbursed to 6,589 units, representing 63% of the total distribution.
PMFME Scheme Overview: A Centrally Sponsored Scheme launched on June 29, 2020, by the Ministry of Food Processing Industries. Aims to formalize and upgrade micro food processing enterprises.
Key Objectives: Increase access to credit, integrate with the supply chain, formalize 200,000 enterprises, improve access to common services (processing, storage, packaging), and strengthen institutions.
Financial Outlay & Sharing: ₹10,000 crores over five years (2020-21 to 2024-25). Cost-sharing ratios: 60:40 (Centre:State), 90:10 (NE & Himalayan States), 100% by Centre for UTs without legislatures.
Coverage: Direct assistance to 200,000 micro food processing units via credit-linked subsidies. Focus on supportive infrastructure.
Financial Support (Individuals): 35% credit-linked subsidy on project cost, capped at ₹10 lakh. Minimum 10% beneficiary contribution.
Financial Support (FPOs/SHGs/Cooperatives): Seed capital to SHGs (₹4 lakh per SHG). 35% credit-linked capital subsidy (max ₹3 crore) for common infrastructure. Up to 50% grant for branding and marketing.
Eligible Borrowers: FPOs, SHGs, Cooperatives, Existing Micro Food Processing Entrepreneurs. New units supported only for ODOP.
Beneficiaries: Entrepreneurs, private limited companies, proprietorship firms, partnership firms, NGOs, cooperative societies, FPOs, and self-help groups.
Scheme Impact: Promotes the unorganized food processing sector, enhances competition, and helps FPOs/SHGs/Cooperatives get actual value for their products.

Pakal Dul Hydropower

Fast-tracked Approval: The Indian government has expedited the approval process for the electricity transmission line of the 1,000 MW Pakal Dul hydropower project. This signals a push to complete the project and integrate its power output into the grid.
1 GW Run-of-the-River Project: Pakal Dul is a significant 1 GW hydroelectric project located on the Marusudar River, a tributary of the Chenab in Jammu and Kashmir’s Kishtwar district. This highlights the project’s scale and importance for the region’s power generation capacity.
Key Infrastructure Components: The project includes a 167m high dam, underground powerhouse, transformer cabin, and cofferdam. This indicates a complex and substantial engineering undertaking.
Power Generation: The project is expected to generate approximately 3,330 million units of energy annually. This emphasizes the project’s potential to significantly boost the region’s power supply.
Joint Venture: The project is being developed by Chenab Valley Power Projects [P] Ltd. (CVPPL), a joint venture between NHPC and J&K State Power Development Corporation Ltd (JKSPDC). This highlights the collaborative nature of the project.
Benefits to J&K: The state of J&K will receive 12% free power for the first ten years and has the first right to purchase power allotted to NHPC and PTC. This showcases the project’s economic benefits for the region.

Manas National Park

Elephant Poaching: Three individuals have been arrested for allegedly killing three wild elephants within Manas National Park.
Location & Border: Manas National Park is situated in the Himalayan foothills of Assam, bordering Bhutan’s Royal Manas National Park.
Manas River: The Manas River flows through the park’s western side and serves as a natural border between India and Bhutan. It’s a major Brahmaputra tributary.
Multiple Designations: The park holds the distinction of being a Natural World Heritage Site, Tiger Reserve, Elephant Reserve, Biosphere Reserve, and Important Bird Area.
Project Tiger: Manas was among the first reserves included in Project Tiger in 1973.
Tiger Conservation Landscape: It’s part of a larger tiger conservation network with other reserves in India, Bhutan, and Myanmar.
Indigenous Communities: The park is inhabited by communities like the Bodo, who have strong ties to the land.
Flora: Vegetation includes Sal forests, grasslands, and riparian vegetation. Hoolong trees are prominent.
Fauna: Known for endangered species like Hispid Hare, Pygmy Hog, Golden Langur, Indian Rhinoceros, and Asiatic Buffalo.
Districts: Manas National Park is located in Chirang and Baksa districts of Bodoland Territorial Region in Assam.

Manas National Park

India’s Schools: Status

Poor Learning Outcomes: ASER 2024 reveals that only 23.4% of Class 3 students in government schools can read a Class 2-level text. India’s learning poverty rate is high, with 70% of 10-year-olds unable to read a basic text.
Underfunding: Public education spending remains at 4.6% of GDP, falling short of the 6% target set by NEP 2020.
Teacher Shortage: Over 1 million teacher vacancies exist, particularly in rural areas, leading to high pupil-teacher ratios (up to 47:1).
High Dropout Rates: Dropout rates increase with grade level, reaching 14.1% at the secondary level. Boys have higher dropout rates than girls at the secondary level.
Infrastructure Gaps: Only 43.5% of government schools have computers for teaching. Many schools lack basic amenities like electricity, functional toilets, and disabled-friendly toilets.
Regional Disparities: States like Bihar, Uttar Pradesh, and Maharashtra have the highest dropout rates.
Curriculum Issues: The school system focuses on rote learning over creativity and critical thinking.
Regulatory Deficits: Regulation focuses on inputs rather than learning outcomes, lacking an independent quality monitoring body. SSSA implementation is slow.
Addressing Issues via measures: Focus on learning outcomes through assessments and performance-linked funding. Scale up NIPUN Bharat Mission. Strengthen teacher training. Bridge the urban-rural divide. Expand digital access via DIKSHA. Operationalise SSSA for quality benchmarks.

Why in News?

The ASER 2024 report highlights the struggling state of India’s school education system, with significant learning deficits, teacher shortages, and infrastructural gaps.

AI Water Atlas

Haryana Launches AI-Enabled Water Atlas 2025: The Haryana government has introduced a geospatial platform powered by Artificial Intelligence (AI) to address its rapidly depleting water reserves.
Comprehensive Water Resource Monitoring: The platform monitors crucial water-related parameters, including groundwater levels, surface water bodies, aquifers, recharge zones, canal systems, and cropping patterns.
Real-Time Data Integration: It integrates data from various sources, such as satellite imagery, GPS surveys, meteorological inputs from IMD, and data from CGWB, Irrigation, and Agriculture Departments.
Data-Driven Decision-Making: The AI-enabled atlas offers real-time insights to support informed decision-making in water conservation, sustainable farming practices, and infrastructure development.
Focus on Water Conservation: The platform’s primary goal is to conserve and manage Haryana’s water resources more effectively in the face of a deepening water crisis.
AI for Effective Water Management: India is actively adopting AI in water management, as exemplified by the Haryana Water Resource Atlas and AI based prediction model for Arsenic pollution developed by IIT Kharagpur, showcasing a broader trend in utilizing technology for water resource optimization.

One RRB Per State

4th Phase Rolled Out: The ‘One State-One RRB’ (OS-OR) plan’s 4th phase is underway in 10 states and 1 Union Territory, further reducing the number of Regional Rural Banks (RRBs) in India.
Objective: To improve the operational viability and efficiency of RRBs.
What is OS-OR Policy: It is a reform initiative by the Department of Financial Services aimed at consolidating multiple RRBs within a state into a single unified entity
Background: Consolidation started in 2005, based on Dr. Vyas Committee (2001) recommendations. Implemented under Section 23A(1) of the Regional Rural Banks Act, 1976
Reduction in Numbers: RRBs have been reduced from 196 in 2005 to 28 with the current phase.
Increased Capital: Each restructured RRB will have an authorized capital of Rs 2,000 crore.
Impact: RRBs achieved a record net profit of Rs 7,571 crore in FY 2023-24. Expected to further support rural development.
Challenge 1: High Operational Costs: High cost/income (77.4%) and wages/operating expenses (72%) ratios indicate inefficiency. Requires cost optimization, tech adoption, and cybersecurity investment while maintaining personal engagement with villagers.
Challenge 2: Concentration Risk: A single RRB now bears the full risk of state agricultural sector failures, potentially exacerbating regional economic vulnerabilities.
Challenge 3: Governance Issues: Complex three-way ownership (Central and State governments, sponsor banks) and dual regulation (RBI and NABARD) lead to slow decision-making.
Challenge 4: Regional Considerations: One-size-fits-all approach may not work; consolidation needs to account for each state’s unique economic, demographic, and geographic factors.
Why in News: The consolidation aims to create stronger, more efficient RRBs, but potential risks related to cost management, concentrated risks, and complex governance need careful management.

Aotearoa

India-New Zealand FTA Negotiations: The first round of negotiations for a Free Trade Agreement (FTA) between India and New Zealand concluded successfully in New Delhi from May 5-9, 2025.
High-Level Support: Launched following discussions between Indian and New Zealand ministers in March 2025, building upon the commitment made by Prime Ministers Narendra Modi and Christopher Luxon.
Comprehensive Discussions: Constructive negotiations covered a broad spectrum including trade in goods and services, trade facilitation, and mutually beneficial economic cooperation.
Strong Bilateral Trade Growth: Merchandise trade reached USD 1.3 billion in FY2024-25, marking a significant 48.6% increase over the previous year, indicating growing economic partnership potential.
FTA Benefits: The FTA aims to enhance trade and investment, improve supply chain integration, and create a predictable trading environment for businesses in both countries.
Future Plans: Both countries are committed to concluding the FTA this year, with the next round of negotiations scheduled for July 2025.
Strategic Importance: This FTA reflects the strategic importance both nations place on fostering a mutually beneficial and balanced trade agreement, aligning with India’s broader efforts to enhance economic partnerships.
Geopolitical Context: New Zealand is located in the Southwestern Pacific Ocean, prone to earthquakes and volcanic activity due to its position on the Pacific Ring of Fire. Its diverse geography supports hydroelectric energy and tourism.

Seabirds & Marine Pollution

Hormonal Disruption: Research indicates that plastic ingestion by seabirds can disrupt their hormonal systems due to chemicals released from the plastic, affecting fertility, development, and behavior.
Vulnerable Seabird Species: Albatrosses, petrels, and shearwaters (Procellariiformes) are highly susceptible due to their foraging habits and ability to retain plastic in their stomachs for extended periods.
High Plastic Ingestion Rates: Procellariiformes have some of the highest rates of plastic ingestion; approximately 63% retain pollutants in their stomachs for weeks or months. Northern fulmars are bioindicators of marine plastic pollution due to surface feeding habits.
Physical Harm: Plastic ingestion causes physical harm like obstruction, perforation of the digestive tract, a false sense of satiation leading to malnutrition, and inflammation/fibrosis from micro/nano-plastics.
Marine Plastic Pollution Statistics: 8-10 million metric tons of plastic enter oceans annually, constituting 80% of marine waste. By 2050, plastic may outweigh fish. 50-75 trillion plastic pieces currently pollute the oceans.
Broader Impacts: Marine pollution harms biodiversity, reduces oxygen levels, disrupts deep-sea ecosystems, contaminates the food chain, and negatively impacts human health and coastal livelihoods.
Global Efforts: The Global Partnership on Plastic Pollution and Marine Litter (GPML) and the 1972 London Convention/1978 MARPOL Protocol aim to combat marine plastic pollution.

INS Tamal

INS Tamal delivery imminent: India is set to receive INS Tamal, its second advanced stealth frigate built in Russia, expected within a month after trials.
Part of Indo-Russian deal: INS Tamal is a Krivak-III class frigate, part of a 2016 agreement where two ships are built in Russia and two in India. INS Tushil was the first ship built and commissioned in December 2024
Advanced Stealth Features: It is designed with stealth technology to evade radar, enhancing survivability.
Weapon Systems: Equipped with BrahMos supersonic cruise missiles (extended range to 450 km), Shtil surface-to-air missiles, anti-submarine torpedoes and rockets.
Multi-Role Capabilities: Designed for air, surface, underwater, and electromagnetic warfare. It can operate Kamov-28 and Kamov-31 helicopters
Speed and Range: Can achieve speeds of over 30 knots, with a mission range of 3,000 km.
Enhanced Undersea Warfare: The Indian Navy also showcased indigenous underwater mines designed to destroy enemy submarines and warships.
Strengthening Naval Power: These frigates will add to the existing Russian frigates in the Indian Navy, enhancing its blue-water capabilities.

Balochistan

Balochistan Liberation Army (BLA) Claims: The BLA has asserted the capture of multiple strategic army posts across Balochistan, including in Quetta.
Location and Geography: Balochistan is primarily located in western Pakistan but extends into southeastern Iran. It
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borders Afghanistan to the north and the Arabian Sea to the south.
Pakistani Province: The Pakistani province of Balochistan is the country’s largest but least populated, with Quetta as its capital.
Ethnic Composition: The major ethnic groups include the Baloch and Pashtun people, along with a third group of mixed ethnicity, mainly of Sindhi origin.
Languages and Religion: The majority of the population practices Islam and speaks languages of the Iranian branch of the Indo-Iranian language family, including Balochi, Brahui, Pashto, and Sindhi.
Historical Context: Historically ruled by Greeks, Arabs, and later annexed by the British, much of Balochistan became part of Pakistan in 1947 after the partition of British India.

Why it’s in the news: The BLA’s claim of capturing army posts highlights the ongoing conflict and instability in the region. This event may lead to escalated tensions between the Baloch insurgents and the Pakistani military.

2025 Global Economy

Why in News: The IMF’s April 2025 World Economic Outlook (WEO) projects India to become the fourth-largest economy in 2025, surpassing Japan.
Global Growth: The IMF revised global growth downwards to 2.8% for 2025. Emerging markets are projected to grow at 3.7%, still above the global average.
India’s Growth: India’s growth is forecast at 6.2% for 2025, slightly down, but still the fastest-growing major economy. Its GDP is projected to reach USD 4.187 trillion in 2025, exceeding Japan.
Private Consumption: Strong private consumption, particularly in rural areas, drives India’s growth. India is set to become the third-largest consumer market by 2026.
Macroeconomic Fundamentals: India’s fiscal management (lower debt-to-GDP ratio) and structural reforms support stability.
Infrastructure Development: Investment in infrastructure and digitalization boosts productivity. India’s digital economy is a significant contributor.
Government Reforms: Initiatives like financial inclusion schemes and manufacturing incentives strengthen economic dynamism. Infrastructure projects support growth.
Demographics: A young, growing workforce, with increasing female labor participation, benefits India.
Technological Innovation: The adoption of digital technologies supports higher productivity. Indian startups are expected to create millions of new jobs.
External Demand: Increased integration into global value chains provides growth opportunities. India’s share in global services exports has doubled.

Thunderdome

MADMAX’s First Dark Photon Search Results: The MADMAX collaboration has released the initial results from their search for dark photons using a prototype detector.
What is MADMAX? It stands for Magnetised Disk and Mirror Axion Experiment, designed to detect dark matter candidates like axions and dark photons.
Dark Photons Explained: These are hypothetical, massive particles akin to photons, potentially comprising dark matter halos. They can convert to ordinary photons under certain conditions.
Detection Method: The detector boosts the conversion of dark photons to microwave photons using a resonator system of dielectric disks and a mirror. The mirror focuses the signal towards a microwave receiver via a horn antenna.
Key Setup Features: The resonator’s size, larger than expected dark photon signal wavelengths, allows detection at higher frequencies (around 20 GHz). Resonance frequencies are tunable by adjusting disk positions, broadening the mass range coverage.
Signal Identification: A narrow peak in Fourier space, distinguishable from thermal noise, would indicate a signal.
Experimental Outcome: No dark photon signals were detected in the first prototype run.
Significant Sensitivity: The instrument operated successfully, achieving a sensitivity 1000 times better than previous methods, exploring a previously uncharted parameter space in a single experiment.
Axions: Hypothetical particles that could solve a problem in physics and be candidates for dark matter.
Dark Photon Significance: These may mediate interactions within the dark matter sector.

Methane (CH₄)

High Methane Emissions: The energy sector emitted 145 million tonnes (Mt) of methane in 2024, with oil and gas accounting for over 80 Mt, per the IEA’s Global Methane Tracker 2025.
Methane’s Impact: Methane is a potent greenhouse gas responsible for approximately 30% of global temperature increase since the Industrial Revolution, with concentrations 2.5 times pre-industrial levels and rising faster than other GHGs.
Major Sources: Agriculture, energy, and waste sectors are the main anthropogenic sources. The energy sector accounts for over 35% of human-induced emissions.
Energy Sector Breakdown: Oil operations (~45 Mt), natural gas (~35 Mt), abandoned wells (~3 Mt), coal (~40 Mt, including 4 Mt from abandoned mines), and bioenergy (~18 Mt, primarily from traditional biomass) are key contributors within the energy sector.
Methane Characteristics: It’s a colorless, odorless, and flammable gas (marsh gas) with a short atmospheric lifespan (~10 years) but a high Global Warming Potential (GWP) – ~80 times that of CO₂ over 20 years.
Mitigation Potential: Approximately 70% of fossil fuel methane emissions can be mitigated with existing technologies. In oil & gas, ~75% of emissions can be reduced by fixing leaks and plugging abandoned wells.
Top Emitters: China, USA, Russia, Iran, Turkmenistan, and India are the top emitters from fossil fuel operations.
Global Methane Pledge: The Global Methane Pledge at COP26 aims for a 30% reduction in global methane emissions by 2030.

Methane (CH₄)

Lupus: An Overview

World Lupus Day (May 10): Highlights the need for increased awareness of this rare and severe autoimmune disease.
What is Lupus: An autoimmune disease where the body’s immune system attacks its own tissues and organs, leading to inflammation that can affect various body systems.
Causes: The exact cause is unknown, but it is believed to result from a combination of genetic, hormonal, and environmental factors. More prevalent in women.
Types of Lupus: Several types exist, including Systemic Lupus Erythematosus (SLE – most common), discoid lupus, subacute cutaneous lupus, drug-induced lupus, and neonatal lupus.
Symptoms: Symptoms vary widely and can affect different parts of the body, including joint pain, headaches, rashes, fever, fatigue, mouth sores, confusion, swollen glands, and blood clots.
Flare-ups and Remission: Symptoms occur in flare-ups, with periods of remission (few or no symptoms) in between.
Treatment: There is no cure for lupus. Treatment focuses on managing symptoms through medication and lifestyle changes.
Key Facts: Lupus is an autoimmune disease caused by a complex interplay of genes, hormones, and environmental factors. It is treatable, but not curable.

Stamp Vendors: Public Servants

SC Ruling: The Supreme Court declared licensed stamp vendors as “public servants” under the Prevention of Corruption Act, 1988.
Reasoning:
- Stamp vendors perform an essential public duty by providing access to stamp papers, crucial for legal transactions.
- They are remunerated by the government through commissions or discounts on stamp paper sales, establishing a financial link to public service.
- The court emphasized that the definition of “public servant” should be interpreted broadly to effectively combat corruption. The court noted that, it is the nature of duty being discharged by a person which assumes paramount importance when determining whether such a person falls within the ambit of the definition of public servant as defined under the PC Act.
Case Specifics: This ruling stems from an appeal by a stamp vendor, Aman Bhatia, who was convicted under the anti-corruption law. While the SC upheld the “public servant” status, it overturned Bhatia’s conviction due to insufficient evidence of demanding and accepting a bribe.
Legal Basis: The judgment is based on Section 2(c)(i) of the Prevention of Corruption Act, which defines a public servant as someone in government service, paid by the government, or remunerated by fees/commission for performing a public duty.

The IMF

IMF Disbursement to Pakistan: The IMF approved the immediate disbursement of approximately $1 billion to Pakistan
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under the Extended Fund Facility (EFF) on May 9, 2025. This brings the total disbursements under the EFF to about $2.1 billion.
Resilience and Sustainability Facility (RSF): The IMF Executive Board also approved Pakistan’s request for an arrangement under the RSF, providing access to about $1.4 billion. This aims to support Pakistan’s efforts to reduce vulnerabilities to natural disasters and build climate resilience.
EFF Objectives: The 37-month EFF, approved in September 2024, focuses on building resilience and enabling sustainable growth, with priorities including macroeconomic sustainability.
India’s Abstention and Concerns: India abstained from the IMF vote, raising concerns about Pakistan’s “poor track record,” the potential misuse of funds for state-sponsored cross-border terrorism, and the Pakistan military’s interference in economic affairs. India stated that rewarding cross-border terrorism sends a dangerous message and exposes donors to reputational risks.
Pakistan’s Response: Pakistan’s Prime Minister expressed satisfaction with the IMF approval and criticized India’s “high-handed tactics.” Pakistan claims its economic situation is improving and accused India of attempting to divert attention from its development through aggression.
IMF Conditions & Reforms: The IMF program is expected to stabilize Pakistan’s economy and facilitate long-term recovery. Pakistan agreed to reforms, including a carbon levy, electricity tariff revisions, increased water pricing, and automobile sector liberalization.