India flags Pakistan’s misuse of IMF funds, abstains from vote on fresh bailout

This decision has come at a time when tensions between India and Pakistan are at their peak. Recently, India had taken military action by targeting terrorist infrastructure in Pakistan and PoK under 'Operation Sindoor'. This action was taken in response to the Pahalgam terror attack on April 22, in which 26 civilians were killed.

India has cited Islamabad's 'poor record in the use of financial aid' as the reason behind this.

'Pakistan fails to meet IMF conditions'

At the IMF board meeting held in Washington on May 9, India expressed concern over Pakistan's repeated failure to meet IMF aid conditions. India also cited an IMF report which said that Pakistan has become a 'too-big-to-fail' debtor for the IMF due to repeated relief to it. The report also said that political factors also play a role in giving IMF aid to Pakistan.

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'IMF money going to terrorist organizations'

India also reiterated that the financial aid given to Pakistan indirectly helps its intelligence agencies and terrorist organizations like Lashkar-e-Taiba and Jaish-e-Mohammed, which have been carrying out attacks on India.

Pakistan's economy dependent on IMF

India's abstaining from this vote is being seen as a message to the IMF and other multilateral financial institutions that giving financial aid to Pakistan without taking concrete steps can be dangerous for regional security.

Pakistan's economy is heavily dependent on IMF aid, so India's move is being seen as another diplomatic pressure on it

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