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.

Why has the IMF given Pakistan money? Is it a loan or a grant? How is Pakistan's economy doing now, and why does the country need frequent grants and loans from other nations and institutions? We explain.

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.