India Asks IMF to Review Loans to Pakistan Following Pahalgam Terror Attack

New Delhi: Amid the ongoing India-Pakistan conflict over the Pahalgam terror attack, which claimed 26 lives, India has formally asked the International Monetary Fund (IMF) to review its financial assistance to Pakistan. The move comes as part of India's broader diplomatic and economic response to the incident, which has heightened tensions between the two neighbouring nations.

India Asks IMF to Review Loans to Pakistan Following Pahalgam Terror Attack 

Pakistan received a $7 billion bailout package from the IMF last year, followed by an additional $1.3 billion climate resilience loan in March. India has raised concerns that these funds could be misused or indirectly support activities that threaten regional stability. Indian officials have urged the IMF to reassess the conditions under which financial aid is granted to Pakistan.

Strict Measures Taken by India

Apart from pushing for an IMF loan review, India has taken several diplomatic and economic steps in response to the attack, such as suspending the Indus Waters Treaty and restricting water flow to Pakistan. Closure of Indian airspace to Pakistani flights. Blocking of Pakistani digital platforms, including YouTube channels.

Pakistan in Denial Mode

Pakistan has denied any involvement in the Pahalgam attack and has called for an impartial investigation. Pakistani finance ministry advisor Khurram Schehzad has stated that the IMF programme remains "well on track", emphasising that Pakistan had productive meetings with financial institutions in Washington.

World Reactions Over India-Pakistan Conflict

The escalating tensions between the two countries have drawn international attention. Several world leaders have urged Pakistan to cooperate with India in tracking down the Pahalgam attackers. The IMF has yet to issue an official statement regarding India's request.

India’s push for Pakistan's IMF loan review signals a firm stance against cross-border terrorism and financial aid that could potentially be used by the neighbouring country to nurture terrorist activities.