As Pakistan trembles, fearing an imminent attack, it has been deploying more forces to the border. In a strategic move, India plans to initiate talks with global financial institutions such as the IMF, World Bank, and the Asian Development Bank, urging them to reassess the financial assistance being provided to Islamabad.
Business Today quoted an government official saying: “India will raise concerns over continued development funding to Pakistan despite its failure to rein in cross-border terrorism,” According to the report, India will soon open dialogue with key lenders, including nternational Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB), calling for a reassessment of financial assistance being extended to Islamabad. India plans to take economic action against Pakistan following the Pahalgam terror attack on April 22, which claimed the lives of 26 tourists. The attack, carried out by four terrorists, is believed to have been orchestrated by Pakistan’s Army Chief, Asim Munir, with the involvement of his associated terrorist organisations. These groups are reportedly linked to India’s most-wanted terrorists, including Hafeez Saeed, the mastermind behind the 2008 Mumbai terror attacks.
Current Situation Of Pakistan
Pakistan is currently part of a $7 billion IMF bailout program, which requires the country to implement reforms aimed at improving domestic revenues and reducing fiscal deficits. In September 2024, Pakistan secured approval for this loan from the IMF, marking the 24th bailout program granted to the country since 1958. India is expected to raise concerns about the credibility and oversight of financial assistance programs like the IMF bailout, especially in light of the ongoing terror-related incidents linked to Pakistan.
News reports says that the Asian Development Bank has extended $43.4 billion to Pakistan through 764 public sector loans and grants. The World Bank has committed $49.7 billion across 365 projects, including a massive $20 billion deal in January 2025.
The IMF has continuously supported Pakistan through several stabilization programs, including the current $7 billion arrangement. This program is crucial for Pakistan’s $350 billion economy, and the country has stated that it helped stabilize its finances and avoid the threat of default.
The Indian government has taken several retaliatory measures, including suspending the critical Indus Waters Treaty and closing its airspace to Pakistani flights. Furthermore, India has urged the IMF to reevaluate the terms and allocation of its financial aid to Pakistan.
The Kashmir conflict remains a major point of contention between the two nuclear-armed nations. Both countries claim the region in full but administer different portions of it. India has accused Pakistan of supporting cross-border terrorism, while Pakistan asserts that it only provides moral and diplomatic backing for the Kashmiri people’s quest for self-determination.
