The opposition leader told Parliament MPs who were behind the motion changed their mind on Thursday night and he withdrew the motion on Friday morning.
Kalsakau said he knew all along the opposition did not have the required 27 MPs to topple him.
On Friday morning the opposition only had the support of 15 MPs against 36 on the government side.
Loughman alleged the Kalsakau-led government of putting political pressures on state institutions as well as threatening, intimidating and targeting public officials.
However, the First Political Advisor to the Vanuatu Prime Minister's Office had said the opposition's motion was unwarranted.
Georgio Calo said Kalsakau has only been in his post for six months and to table a motion of no confidence against him now was not fair.
Calo said the allegations did not hold water.
"There is no political influence in the government institution as claimed by Loughman and the opposition MPs," he told the Daily Post.