India on Friday abstained from voting on two proposed loan programs for Pakistan at the International Monetary Fund (IMF), citing concerns over Islamabad’s continued sponsorship of cross-border terrorism and its history of misusing international financial assistance.
How India’s strategic move against Pakistan comes from a Prussian General: Newsmobile EIC @isaurabhshukla On Arnab’s show#India #Pakistan #India #PahalgamTerroristAttack #OperationSindoor pic.twitter.com/9NnjpMwZp1
— NewsMobile (@NewsMobileIndia) May 9, 2025
The IMF board was reviewing Pakistan’s request for a $1 billion disbursement under the Extended Fund Facility (EFF) and a fresh $1.3 billion Resilience and Sustainability Facility (RSF). While the programs were eventually approved, India chose to withhold its support, taking a firm stance rooted in national security and fiscal accountability concerns.
In a detailed statement, the Ministry of Finance highlighted Pakistan’s persistent non-compliance with IMF program conditions and a pattern of economic mismanagement. “Pakistan has been a prolonged borrower from the IMF, with disbursements in 28 of the last 35 years. In the past five years alone, there have been four separate IMF programs,” the statement noted.
India warned that repeated bailouts have neither stabilized Pakistan’s macroeconomic fundamentals nor ensured structural reforms. “Had the previous programs succeeded, Pakistan wouldn’t be seeking yet another bailout,” the statement added.
The Indian government also raised alarm over the risk of international funds being diverted to support state-sponsored terrorism. “Fungible inflows from institutions like the IMF could potentially be misused to fund cross-border terrorism, as Pakistan continues to provide safe havens and support to terror networks,” the statement asserted.
India also flagged concerns about the Pakistan Army’s pervasive influence over the country’s economic and political affairs. Referring to a 2021 UN report that described the military-linked businesses as Pakistan’s largest conglomerate, India emphasized that the army’s control over financial and investment institutions, such as the Special Investment Facilitation Council, undermines any civilian-led reform agenda.
Pointing to the IMF’s own internal evaluations, India cited a section from the Fund’s “Report on Evaluation of Prolonged Use of IMF Resources,” which identified Pakistan as a case where political considerations may have shaped lending decisions. “This creates a dangerous precedent and exposes global funding agencies to reputational risks,” India stated.
Earlier in the day, Foreign Secretary Vikram Misri reaffirmed India’s objections during a press briefing in the national capital. He confirmed that India will be raising its concerns with the IMF board and reiterated that international financial institutions must not overlook moral and security implications in their lending decisions.
Click here for Latest Fact Checked News On NewsMobile WhatsApp Channel
For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram
