Pakistan, May 24 -- An Indian journalist faced an awkward moment during an IMF press briefing when he asked if Pakistan could use IMF funds to support cross-border terrorism. Julie Kozack, Director of Communications at the IMF, firmly denied the suggestion. She clarified that the loan is strictly for supporting Pakistan's foreign exchange reserves and not for any military or political purpose.

Kozack explained that Pakistan cannot use the IMF funds for its national budget or any government spending. She said the money is given directly to the State Bank of Pakistan to help with balance of payments. Moreover, she stated that the Government of Pakistan is not allowed to borrow from the central bank under the loan terms. She confirmed Pakis...