India has chosen not to vote on the International Monetary Fund’s (IMF) suggested $1.3 billion bailout for Pakistan, pointing to Islamabad’s “poor record” in properly using past financial assistance.
The decision arises amid intensifying tensions between the nations after India’s recent military actions targeting terror infrastructure in Pakistan and Pakistan-Occupied Kashmir as part of Operation Sindoor in response to the April 22 Pahalgam incident.
India flags Pak’s repeated failure to meet conditions
During the IMF board meeting on May 9 in Washington, India raised concerns regarding Pakistan’s ongoing inability to fulfill the conditions linked to IMF support.
India flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources.
The report highlighted a common belief that political factors significantly influence IMF lending to Pakistan. Due to multiple bailouts, Pakistan’s debt load is extremely high, which ironically renders it a too-big-to-fail borrower for the IMF.
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India casts doubts on efficacy and end-use of funds
India’s stance highlighted the common belief that political factors have affected IMF loans to Pakistan, casting doubt on the efficiency and application of the funds.
New Delhi has repeatedly asserted that financial assistance to Pakistan indirectly backs military intelligence activities and terrorist organizations like Lashkar-e-Taiba and Jaish-e-Mohammed, which have carried out attacks within India.
The IMF’s evaluation of Pakistan’s bailout plan occurred simultaneously with India’s “Operation Sindoor,” a military operation aimed at terror camps within Pakistan and PoJK as a reaction to the April 22 Pahalgam terror attack that resulted in the deaths of 26 civilians.
India has repeatedly stressed that its strikes were accurate and focused solely on terror infrastructure, whereas Pakistan’s counter drone and missile strikes on Indian military and civilian locations were thwarted by India’s air defense.
