India Urges IMF to Reconsider $1 Billion Loan to Pakistan, Citing Terror Funding Concerns
Pakistan, May 16 – Indian Defence Minister Rajnath Singh has called on the International Monetary Fund (IMF) to reconsider its $1 billion loan to Pakistan, alleging that the funds could be used to finance terrorism. His remarks come amid heightened tensions between India and Pakistan, following a deadly attack on tourists in Indian Illegally Occupied Jammu and Kashmir (IIOJK)—an attack that New Delhi claims was backed by Pakistan. However, Pakistan has denied these allegations.
Singh’s Statement and India’s Concerns
Speaking to troops at an air force base in western India, Singh stated, “I believe a big portion of the $1 billion coming from the IMF will be used for funding terror infrastructure. Any economic assistance to Pakistan is nothing less than funding terror.” His comments reflect India’s long-standing concerns over Pakistan’s alleged involvement in supporting militant activities in the region.
IMF Loan Approval Despite India’s Objections
Despite India’s objections, the IMF’s Executive Board approved a review of Pakistan’s loan programme last week, which included the release of the $1 billion loan. The State Bank of Pakistan has already received the payment. Additionally, a fresh loan of $1.4 billion was approved under the IMF’s climate resilience fund.
India, which holds representation on the IMF board for Bhutan, Sri Lanka, and Bangladesh, abstained from voting on the loan review. The Indian Finance Ministry issued a statement expressing concerns over the effectiveness of IMF programs in Pakistan, citing the country’s poor track record.
Pakistan’s Response
In response, Pakistan’s Foreign Ministry strongly criticized India’s actions. Spokesperson Shafqat Ali Khan described India’s efforts to block the loan as a reflection of its growing frustration and desperation. “India was the lone country which tried to stop it and it failed,” Khan said, adding that criticizing the IMF only highlighted India’s inability to influence the decision.
Tensions Continue to Rise
The ongoing political and military tensions between India and Pakistan have added to the already complex dynamics surrounding Pakistan’s international financial assistance. With both nations locked in diplomatic disputes, the IMF’s decision remains a contentious issue in the region.
