- Saturday, May 10, 2025
India opposed the IMF’s proposal to extend fresh loans of $2.3 billion to Pakistan, saying they could be misused to finance terrorism
By: India Weekly
AFTER the International Monetary Fund (IMF) approved a loan of $1 billion for Pakistan, India has flagged to the possibility of it misuse by Islamabad for terrorism.
In a post on social media platform X, the ministry of information and broadcasting said, “As an active and responsible member country, India raised concerns over the efficacy of IMF programs in case of Pakistan given its poor track record, and also on the possibility of misuse of debt financing funds for state-sponsored cross border terrorism”.
It further said that Pakistan has been a prolonged borrower from the IMF with a very poor track record of implementation and of adherence to the IMF’s program conditions.
The statement followed soon after the IMF on Friday (9) approved the immediate disbursement of about $1 billion to Pakistan under the ongoing extended fund facility.
The Washington-based global lender also considered a fresh resilience and sustainability facility (RSF) lending program ($1.3 billion) for Pakistan.
India opposed the IMF’s proposal to extend fresh loans of $2.3 billion to Pakistan, saying they could be misused for state-sponsored cross-border terrorism.
India registered its protest at the board of IMF, which met on Friday, and abstained from voting.
The Indian finance ministry pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.
India’s opposition at the IMF comes at a time when military conflict between India and Pakistan has intensified.
Meanwhile, a statement issued by the Pakistan prime minister’s Office said expressed satisfaction over the loan approval and lashed out at India’s attempts to thwart it.
The statement pointed out that Pakistan’s economy has improved, and the new loan would put the country on path to sustained growth.
“India is plotting a conspiracy to divert attention from our country’s development through unilateral aggression,” it added.
“Indian attempts to sabotage the IMF programme have failed,” the statement said.
Pakistan and the IMF had reached a three-year, $7 billion aid package deal in July last with the new program set to allow the country to cement macroeconomic stability.
