India Urges IMF to Review Loans to Pakistan Amid Rising Tensions

New Delhi has requested that the International Monetary Fund (IMF) reassess its financial assistance to Pakistan, a source within the Indian government disclosed. This request comes as tensions intensify between the two nations following a recent fatal incident in Indian Illegally Occupied Jammu and Kashmir.

Following an assault on Hindu tourists in Indian Illegally Occupied Jammu and Kashmir that resulted in 26 fatalities, both India and Pakistan have initiated a series of actions. There are growing concerns that this escalating crisis between the two nuclear powers could potentially lead to armed conflict.

India has identified the individuals responsible for the attack as “terrorists,” asserting that two of them are Pakistani citizens.

Islamabad has refuted any involvement and has advocated for an impartial inquiry. In response, India has halted a vital water-sharing agreement, and both countries have restricted their airspace to each other’s airlines.

Pakistan’s economy, valued at $350 billion, relies significantly on the $7 billion bailout package secured from the IMF last year. Additionally, a new $1.3 billion loan for climate resilience was approved in March. Pakistani officials have stated that the bailout has been crucial in stabilizing the economy and averting a potential default.

According to a government source, India has voiced its concerns to the IMF regarding its loans to Pakistan and has requested a thorough review of these financial arrangements. No further details were provided.

Neither the IMF nor India’s finance ministry has issued an immediate response to requests for comments.

The advisor to Pakistan’s finance minister maintains that the IMF program is proceeding as scheduled.

Khurram Schehzad, the advisor, mentioned that the most recent assessment was successful, and Pakistan remains on course. He added that productive meetings were held with financial institutions in Washington. Schehzad noted significant interest in investing in and supporting Pakistan due to its improving economic conditions.

The increasing strain between the two countries has garnered international attention, with calls for de-escalation. US Vice President JD Vance expressed Washington’s hope that Pakistan would cooperate with India in apprehending the assailants.

Both India and Pakistan claim the entirety of Muslim-majority Kashmir, but each only controls portions of the region.