June 22, 2025 06:41 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
DGCA orders termination of three Air India officials over safety lapses | Nitish Kumar announces big hike in pension under social security scheme ahead of Bihar polls | After denial, Priyank Kharge now secures External Affairs Ministry's clearance for US travel visit | Let inner peace become global peace: Modi's message to the world on International Yoga Day | 'Declined Trump's invitation as I had to visit Lord Jagannath's holy land': PM Modi in Odisha | Loyal to Congress for 16 years, differences can be discussed behind closed doors: Shashi Tharoor | Indians will soon feel ashamed to speak in English: Amit Shah amid language debate | Crashed Air India aircraft's black box to be sent to US for data recovery as India lacks 'proper equipment' | After SC's rap, Karnataka govt promises securities to theatres if Kamal Haasan's Thug Life releases | 'Misconduct proved': Probe panel recommends 'cash pile' accused Justice Yashwant Varma's impeachment
Representative image of IMF meeting. Photo courtesy: Official Facebook

India opposes IMF's proposal to extend fresh loans to Pakistan, abstains from voting

| @indiablooms | May 10, 2025, at 12:55 am

New Delhi/IBNS: India on Friday opposed the International Monetary Fund (IMF)'s proposal to extend fresh loans of USD 2.3 billion to Pakistan, saying the funds could be utilised for financing state-sponsored cross-border terrorism.

New Delhi abstained from voting at the crucial International Monetary Fund meeting.

As an active member country, India raised concerns over the efficacy of IMF programmes in the case of Pakistan, given its poor track record.

It also pointed to the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism, the finance ministry said in a statement.

India registered its protest at the board of IMF, which met on Friday to review the Extended Fund Facility (EFF) lending programme (USD 1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme (USD 1.3 billion) for Pakistan.

"While the concern that fungible inflows from international financial institutions, like the IMF, could be misused for military and state-sponsored cross-border terrorist purposes resonated with several member countries, the IMF response is circumscribed by procedural and technical formalities," India said.

India's opposition at the IMF comes amid a heightened military conflict between India and Pakistan following a terrorist attack in Kashmir's Pahalgam on April 22 that killed 26 civilians, mostly Hindu tourists.

India argued that even when a civilian government is in power in Pakistan, the army continues to play an outsized role in domestic politics and extends its tentacles deep into the economy.

"In fact, a 2021 UN report described military-linked businesses as the 'largest conglomerate in Pakistan'".

"The situation has not changed for the better; rather, the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan," it said.

Earlier, the IMF laid a string of “tough conditions” to bail Pakistan out of its spiralling financial crisis, Prime Minister Shehbaz Sharif had reportedly said.

The IMF completed the ninth review of Pakistan's economy, paving the way for financial aid of over $1.1 billion from the global lender as well as bilateral loans from other nations and institutions.

However, the IMF wanted Pakistan to narrow its massive fiscal deficit, the gap between its expenses and revenues, reported The News International newspaper.

Before lending the money, the IMF wanted to be satisfied with the country's handling of the economic crisis.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Close menu