India has formally asked the International Monetary Fund (IMF) to reassess the financial aid and loan programs provided to Pakistan. A senior Indian official confirmed the request to Reuters but did not share further details. The demand comes amid worsening diplomatic relations following the recent Pahalgam attack in Indian-administered Kashmir.
Pakistan’s economic team has responded with confidence. Khurram Shehzad, advisor to the Finance Minister, said the IMF program is on the right track. He confirmed that the most recent IMF review was completed successfully. Pakistan had secured a $7 billion bailout last year, along with a $1.3 billion Climate Resilience Loan in March 2025, which helped stabilize the economy and reduce default risks.
These financial packages are seen as critical to supporting Pakistan’s $350 billion economy. Officials credit them with easing fiscal pressure and rebuilding confidence among investors and international lenders. The IMF’s ongoing involvement is considered a key lifeline during Pakistan’s slow but steady economic recovery.
India’s demand comes at a politically charged moment. It follows claims that two suspects in the April 22 Pahalgam attack were Pakistani citizens. Pakistan has firmly denied the allegations and has called for an impartial investigation into the incident. The move to pressure the IMF could deepen economic and diplomatic friction between the two nuclear-armed neighbours.