In a recent statement, Indian Defence Minister Rajnath Singh urged the International Monetary Fund (IMF) to reconsider its $1 billion loan to Pakistan, alleging that the funds would be used to finance terrorism. Singh’s remarks come after escalating tensions between India and Pakistan, particularly following a deadly attack on tourists in Indian Illegally Occupied Jammu and Kashmir (IIOJK), which New Delhi claims Pakistan supported. Pakistan, however, has denied these allegations.
Speaking to troops at an air force base in western India, Singh asserted, “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.
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 to Pakistan. 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.
In response, Pakistan’s Foreign Ministry strongly criticized India’s actions. A 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.
The ongoing political and military tensions between India and Pakistan have added to the already complex dynamics surrounding Pakistan’s international financial assistance.