India has called on the International Monetary Fund (IMF) to reconsider its recent approval of a $1 billion loan to Pakistan, citing serious concerns that the funds could be used to support terrorist activities. Indian Defence Minister Rajnath Singh accused Islamabad of being complicit in funding militant groups and warned of global security risks.
“I believe any economic assistance to Pakistan is nothing less than funding terror,” Singh stated during an address to Indian air force personnel. He alleged that a substantial portion of the IMF loan could be diverted to terrorist infrastructure, calling into question the credibility of international financial oversight.
The demand follows recent escalations between India and Pakistan, which saw the deadliest military clashes in decades, resulting in approximately 70 fatalities. The violence was triggered by an attack on tourists in Indian-administered Kashmir, which New Delhi blamed on Pakistan-based militants—a charge Islamabad denies.
Despite India’s objections, the IMF went ahead with its loan programme review, unlocking $1 billion in aid and approving an additional $1.4 billion under its climate resilience fund. India, which represents several South Asian countries including Bangladesh and Sri Lanka on the IMF board, abstained from the vote, citing Pakistan’s “poor track record” with IMF support and expressing doubts about the efficacy of such programmes.
Pakistan, which narrowly avoided default in 2023 through a $7 billion IMF bailout, has struggled with a worsening economic crisis and longstanding issues related to internal militancy. Though it was removed from the Financial Action Task Force (FATF) grey-list in 2022 after making progress against money laundering and terror financing, India maintains that the threat remains high.
Singh went further by urging the United Nations’ nuclear watchdog to monitor Pakistan’s nuclear arsenal, expressing fears that weapons could fall into terrorist hands. Pakistan retaliated by suggesting international scrutiny of a so-called “nuclear black market” in India.
As tensions continue, diplomatic engagements remain active. British Foreign Secretary David Lammy met with Pakistani officials in Islamabad, while Pakistani Prime Minister Shehbaz Sharif reaffirmed his military’s readiness to defend the nation.
The volatile Kashmir region, a flashpoint for decades, remains central to the ongoing hostility between the nuclear-armed neighbors.
