India Opposes IMF’s Fresh Loans to Pakistan

New Delhi: India opposed the IMF’s proposal to extend fresh loans of USD 2.3 billion to Pakistan, expressing concerns that the funds could be misused for financing state-sponsored cross-border terrorism. India abstained from voting at the crucial International Monetary Fund meeting, where the outcome was not immediately known. India raised questions about the effectiveness of IMF programs for Pakistan due to its poor track record and the risk of misuse of debt financing for terrorism. The IMF noted India’s statements and abstention from the vote. India’s opposition comes at a time of increased military conflict between India and Pakistan following a terrorist attack in Kashmir. India highlighted Pakistan’s military interference in economic affairs and the risks it poses to policy stability and reform progress. The statement also mentioned the Pakistan Army’s prominent role in the country’s economy and politics. India cited a UN report describing military-linked businesses as the largest conglomerate in Pakistan. India flagged concerns about political influences in IMF lending decisions for Pakistan, noting the country’s high debt burden and its status as a significant debtor to the IMF.