New Delhi: Days after suspending the Indus Waters Treaty and cancelling visas for Pakistani nationals, the Indian government is now preparing to oppose a proposed $1.3 billion International Monetary Fund (IMF) loan to Pakistan, citing Islamabad’s alleged support for cross-border terrorism.
According to a report in the Economic Times, India is considering casting a negative vote against the disbursement, a major departure from its previous abstentions on IMF assistance to its neighbour. The IMF board is scheduled to convene on May 9 to assess the new $1.3 billion arrangement for Pakistan under its climate resilience loan programme. It will also review progress on the $7 billion bailout package, agreed between the IMF and Pakistan in July 2024 under the Extended Fund Facility.
Series of measures by India
India plan comes in the wake of the ghastly terrorist attack in Jammu and Kashmir’s Pahalgam on April 22. At least 26 people were killed when terrorists opened fire on unsuspecting tourists in Baisaran meadow. The Resistance Force an off shoot of Pakistan-based terror organisation Lashkae-e-Taiba took responsibility of the attack. India has already taken a series of measures, including suspending the Indus Waters Treaty, a longstanding agreement governing water sharing between the two nations.
External Affairs Minister, S Jaishankar, has briefed counterparts from seven non-permanent members of the United Nations Security Council about evidence purportedly linking the Pahalgam attack to cross-border elements.
India’s grounds for opposition
On earlier occasions, India refrained from opposing Pakistan’s bailout package, choosing instead to abstain during IMF proceedings. However, in light of security concerns and allegations of fund misappropriation, India is reportedly prepared to vote against the loan this time.
The Economic Times quoted one official as saying that the grounds for opposition would centre on both technical reasons and the assertion that IMF funds could be diverted away from their intended purposes.
Pakistan’s $7 billion IMF programme, designed to stabilise its faltering economy, is being released in tranches. The upcoming board meeting is crucial for unlocking the next $1 billion instalment, alongside the proposed $1.3 billion climate resilience package.
