India to Urge IMF to Review Pakistan Bailout
India to present case at IMF, seeks review of Pakistan bailout over terror funding concerns
Defence
- Updated 5 days ago
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India will put forward the country's position at a board meeting of the International Monetary Fund in Washington on Friday, Foreign Secretary Vikram Misri said in response to a query on New Delhi asking for a review of loans to Pakistan.
Foreign Secretary Misri said on Thursday that India's executive director at the IMF will put forward the country's position during the meeting of the board of the global financial body.
"I'm sure that our executive director will put forward India's position," he added at a media briefing.
"The decisions of the board are a different matter... But I think the case with regard to Pakistan should be self-evident to those people who generously open their pockets to bail out this country," he said.
Foreign Secretary Misri noted that many of the 24 bailout packages sanctioned by the IMF for Pakistan had not reached a successful conclusion.
Parameswaran Iyer, Executive Director at the World Bank, is currently handling this responsibility after the government removed K.V. Subramanian as the IMF Executive Director.
Pakistan has received several bailout packages from the IMF over the past 10 years. For instance, the Fund approved a $7 billion loan in September 2024 to be disbursed over the years. Of this $7 billion, $1 billion has already been disbursed.
Besides, a $1.3 billion climate change-related loan to Pakistan was approved by the IMF in March 2025.
IMF loans are conditional and require loanee countries to structurally reform their economies.
Foreign Secretary Misri did not hold back in his criticism of Pakistan's use of IMF funds, alleging that the financial support is indirectly enabling Pakistan to fund its military intelligence operations, including groups such as Lashkar-e-Toiba (LeT) and Jaish-e-Mohammed (JeM).
"Pakistan's reputation as the epicentre of global terrorism is rooted in a number of instances... I don't need to remind where Osama Bin Laden was found and who called him a martyr," he said.
He also pointed to the large number of terrorists, including those sanctioned by the UN, who continue to operate within Pakistan's borders.
Foreign Secretary Misri's statement follows mounting concerns that financial support to Pakistan might be used to fuel its ongoing cross-border terrorism activities, particularly against India.
Pakistan, currently facing a severe economic crisis, is highly reliant on IMF support through its Extended Fund Facility (EFF).
The IMF's review on May 9 will determine whether Pakistan meets the necessary conditions to unlock the next tranche of funding. However, the timing of the review is particularly sensitive, coming just days after India's "Operation Sindoor," which targeted terror camps in Pakistan and Pakistan-Occupied Kashmir.
This development has added weight to India's calls for a reassessment of Pakistan's financial assistance.
The recent escalation between India and Pakistan was sparked by the deadly Pahalgam terror attack in Kashmir on April 22.
Foreign Secretary Misri noted that this attack marked the beginning of rising tensions between the two nations.
Despite Pakistan's denial, Foreign Secretary Misri said that the terror group responsible, The Resistance Front (TRF), had publicly claimed responsibility for the attack.
He also highlighted that Pakistan had objected to the mention of TRF in a UN Security Council statement on the attack, underscoring the ongoing cover-up by Pakistan's authorities regarding their support for terror groups.
"Our approach is not to escalate the situation; we only responded to the April 22 Pahalgam terror attack," Foreign Secretary Misri asserted.
Pakistan's longstanding support for terrorist organisations like LeT and JeM remains a significant point of contention between the two countries.
Foreign Secretary Misri reiterated that Pakistan's actions have destabilised the region, contributing to global terrorism.
He also reminded the international community of Pakistan's role in harbouring terrorists who have been responsible for high-profile attacks across the globe.
In his remarks, Foreign Secretary Misri mentioned that both Pakistan's Defence Minister Khwaja Asif and former Foreign Minister had recently admitted to their country's involvement with terrorist groups, further confirming India's position on the matter.
Military tensions between India and Pakistan remain high, with both nations continuing to target each other's military sites.
During a joint press briefing by the Ministry of External Affairs (MEA) and security forces, Colonel Sofia Qureshi of the Indian Army confirmed that Pakistan had targeted multiple military sites in northern and western India on the night of May 7 and May 8.
The Foreign Secretary's comments came amid escalating tensions between India and Pakistan since New Delhi's military strikes on Wednesday against terrorist infrastructure in Pakistan and Pakistan-Occupied-Kashmir.
—IANS
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