IMF Approves ₹8,542 Crore Loan to Pakistan Amid Rising India-Pakistan Tensions – India Strongly Opposes
Amid escalating tensions between India and Pakistan, the International Monetary Fund (IMF) has approved a loan of ₹8,542 crore (approximately 1 billion USD) to Pakistan, despite strong objections from India. This move has sparked significant criticism from Indian authorities and international analysts.
Pakistan, currently facing one of its worst economic crises, approached the IMF seeking urgent financial assistance. The country is experiencing severe inflation, a sharp decline in foreign reserves, and currency depreciation. Basic necessities have become unaffordable for common citizens. To recover from this situation, Pakistan requested another financial bailout.
A recent IMF meeting held last Friday discussed this request. India opposed the loan, arguing that Pakistan has a history of misusing international aid and could potentially divert the funds to support terrorism, especially against India. India even boycotted the vote on this issue, expressing its firm disapproval.
Nevertheless, the IMF approved the loan. Former Jammu & Kashmir Chief Minister Omar Abdullah condemned the decision, warning that this fund may be used to strengthen terrorist activities targeting Indian territories. “These funds could fuel more violence in Kashmir,” he stated.
Even before the ink dried on the IMF’s agreement, Pakistan initiated drone and missile attacks along the Line of Control. Areas such as Rajouri, Poonch, Uri, and Tangdhar in Jammu and Kashmir have seen increased aggression from Pakistan. However, the Indian Army has successfully repelled these attacks.
Since 1958, Pakistan has repeatedly relied on IMF loans. In the past 35 years alone, Pakistan has received assistance in 28 of those years. Despite repeated bailouts, the funds have not translated into sustainable economic reform. Instead, most of the funds are funneled into military expenditure.
Over the past five years, four major projects in Pakistan have been funded through IMF loans. Analysts argue that if these funds had been effectively used for genuine economic development, Pakistan would not be in a situation where it repeatedly seeks new loans.
The military continues to dominate Pakistan’s political and financial decision-making. In its current national budget, Pakistan has increased its defense spending by 18%, indicating a clear prioritization of military over development. This is seen as a major reason why the country’s economy remains in a downward spiral.
The global community has begun to express concern over the implications of this IMF decision. Given Pakistan’s consistent support for extremist groups and its history of cross-border aggression, many believe that such large financial assistance could further destabilize the region. Geopolitical experts have warned that the funds might escalate Pakistan’s hostile actions against India.
Despite India’s objections, the IMF’s decision has raised eyebrows worldwide. It has reignited debates about whether global financial institutions should continue to support a country often accused of backing terrorism and failing to implement real economic reforms.
