In a groundbreaking fiscal decision, India has allocated a staggering $14 billion as an interim budget for the fiscal year 2024-25 to Jammu and Kashmir. This substantial amount is a remarkable 4.5 times more than what Pakistan secured from the International Monetary Fund (IMF) in a $3 billion bailout package.
Finance Minister Nirmala Sitharaman, unveiling the budget on the same day Pakistan observed “Kashmir Solidarity Day,” emphasized the government’s commitment to economic development in the region. Sitharaman credited crucial reforms in 2019 for enabling path-breaking measures, including decentralized governance, inclusive development, increased revenue generation, and robust infrastructure development.
“The Government is maintaining law and order to ensure security while simultaneously implementing initiatives for economic and social development. The Government has adopted a policy of zero tolerance against terrorism,” Sitharaman asserted, highlighting improved security conditions due to effective counter-terrorism measures.
Comparatively, Pakistan’s economic struggles led to a $3 billion bailout package from the IMF. The latest approval of a $700 million loan tranche signals efforts to stabilize the nation’s economy. The first review of Pakistan’s economic reform program was completed, allowing for an immediate disbursement of the funds.
India’s decisive move not only reflects a significant commitment to Jammu and Kashmir’s economic prosperity but also positions the region as a key player in India’s development narrative. The stark contrast with Pakistan’s IMF assistance underscores India’s determination to drive internal growth and stability.
