India's Firm Stand Against Pakistan's IMF Loan Request: A Closer Look
India's Opposition to Pakistan's IMF Loan
New Delhi: India is set to contest Pakistan's bid for a new $1.3 billion loan from the International Monetary Fund (IMF) during an executive board meeting scheduled for Friday.
Foreign Secretary Misri has confirmed that India's executive director, Parameswaran Iyer, will attend the IMF board meeting to express concerns regarding Pakistan's status as a nation that allegedly funds and promotes terrorism as part of its state policy.
Misri stated, "The situation regarding Pakistan should be clear to those who are willing to financially support this nation."
He urged IMF board members to thoroughly examine the facts before considering any further financial aid.
The IMF Executive Board is expected to make a decision on Islamabad's request for a loan aimed at climate resilience, alongside the first review of the ongoing $7 billion bailout package provided to Pakistan.
India firmly opposes any financial support for Pakistan due to significant worries about its involvement in financing terrorism. This IMF meeting follows a recent tragic terror attack in Pahalgam, which was linked to Pakistan and resulted in the deaths of 26 tourists.
Misri accused Pakistan of misappropriating international financial aid, including IMF loans, to fund military and intelligence operations as well as terrorist organizations. He specifically mentioned groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), which are associated with numerous attacks in India and are recognized as terrorist entities under UN sanctions.
In 2023, Pakistan was on the verge of a sovereign default and required a $3 billion IMF bailout. The country remains heavily reliant on this financial support and is urgently seeking an additional $1.3 billion for climate resilience.
On March 25, the IMF announced a staff-level agreement with Pakistan under a new 28-month Resilience and Sustainability Facility (RSF), allowing access to $1.3 billion.
In related news, World Bank President Ajay Banga is visiting Lucknow on Friday to witness the state's impressive economic development. He met with Prime Minister Narendra Modi on Thursday and reportedly assured him that the World Bank would not interfere with India's decision to suspend the Indus Water Treaty amid ongoing tensions with Pakistan. Banga also held discussions with Finance Minister Nirmala Sitharaman in the national capital.