‘Terror financing’: India asks IMF to reconsider Pakistan bailouts

Days after Pakistan received second tranche of $1 billion from the International Monetary Fund (IMF) amid military clashes with India, Defence Minister Rajnath Singh in New Delhi has said that the global lender “should reconsider” its loan amid allegations of “terror financing”.

At least 70 people were killed as tensions between Pakistan and India reached a record high, resulting in the worst military violence in decades before a ceasefire was mediated by the United States (US) last Saturday.

The escalation came after a terror attack on tourists in Pahalgam area of Indian Occupied Jammu and Kashmir (IOJK) last month. While New Delhi accused Islamabad of backing terror groups, the country categorically denied any involvement and offered a transparent probe into the attack. Despite the offer, India attempted to violate Pakistan’s sovereignty through cross-border attacks that led to military confrontation resulting in a befitting response from this side of the border.

Despite India's objections, the IMF last week approved a loan programme review for Pakistan, unlocking a $1 billion payment which the state bank said has already been received. A fresh $1.4 billion loan was also approved under the IMF's climate resilience fund.

India, which also represents Bhutan, Sri Lanka, and Bangladesh on the IMF board, abstained from the review vote with a statement from its finance ministry stating that “concerns over the efficacy of IMF programmes in case of Pakistan given its poor track record”.

“India was the lone country which tried to stop it and it failed. It again reflects Indian frustration. Trying to criticise an institution like IMF speaks about this desperation,” reports quoted Pakistan's foreign ministry spokesman Shafqat Ali Khan as saying.

“I believe a big portion of the $1 billion coming from IMF will be used for funding terror infrastructure,” Indian defence minister said while addressing troops at an air force base Friday. “I believe any economic assistance to Pakistan is nothing less than funding terror,” he added as Indian government members continue attempting to cash in on the conflict.

Meanwhile, Pakistani officials highlight how Islamabad and New Delhi, over the past seven decades, have gained nothing but miseries from wars.

Prime Minister (PM) Shehbaz Sharif has offered India to sit for a comprehensive dialogue to settle contentious issues including Kashmir and jointly fight terrorism, reminding New Delhi that the neighbouring countries fought three wars in the past and gained nothing but miseries of the people.

“After settling disputes like Kashmir and water distribution, we can talk on trade and counter-terrorism as Pakistan is the worst affected country by terrorism which lost 90,000 lives and over $150 billion economic losses,” the premier said on Friday.

He was addressing a ceremony marking Youm-e-Tashakkur [Thanksgiving Day] as the nation celebrated Pakistan’s victory in the recent clashes with India.