Congress joins opposition to IMF loan assistance for Pakistan, cites April 29 demand
The Congress has reiterated its demand to block funding to Pakistan, as India is expected to oppose the International Monetary Fund’s (IMF) proposed USD 1.3 billion loan assistance to Islamabad at an Executive Board meeting of the multi-lateral agency on Friday.
New Delhi’s concerns—over the possibility of IMF loans being misused for money laundering and financing terror activities by Pakistan-based organisations—will be conveyed at the meeting of the lending agency.
Referring to the party’s earlier demand placed before the government on April 29, Congress MP and senior leader Jairam Ramesh said, “The INC had made this demand almost as soon as the IMF announced that the loan for Pakistan would be considered at its Executive Board meeting later today.”
On Thursday, Foreign Secretary Vikram Misri, responding to a question during a special briefing of Ministry of External Affairs (MEA) said, “We have an executive director at the IMF. Tomorrow (Friday) there is a board meeting, and I am sure representative will put forward India’s position.”
He added that the IMF board members would have to base their decision on facts.
“The decisions of the board follow a particular process. But the case regarding Pakistan should be self-evident to those who generously open their pockets to bail out this country. Many bailout programmes have been sanctioned for Pakistan over the last three decades. How many have reached successful conclusions? Probably not many,” Misri said.
“This is a decision the board members have to take by reflecting deeply and examining the facts,” he concluded.
Blocking financial aid to Pakistan would strike a huge blow to its already fragile economy. Pakistan secured a USD 7 billion bailout programme from the IMF in 2024 and was granted a new USD 1.3 billion climate resilience loan in March. The latest proposal would be Pakistan’s 24th IMF programme.
The IMF board is expected to discuss a new climate resilience loan at today’s meeting.
India had earlier abstained from voting on the bailout package given to Pakistan to support its wobbly economy. This time, India could vote against the loan, citing concerns about the misuse of funds for terrorism.
The IMF and Pakistan had in July 2024 reached a deal for a USD 7-billion package under the extended fund facility. The programme required Pakistan to put in place sound policies and reforms to strengthen macroeconomic stability, address deep structural challenges, and create conditions for a stronger, more inclusive, and resilient growth.
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