India Abstains from IMF Vote on Pakistan’s Bailout, Cites Terror Financing Concerns
May 9, 2025 — India has abstained from voting on a $1.3 billion International Monetary Fund (IMF) bailout package for Pakistan, citing serious concerns over the alleged misuse of international financial aid and the country’s continued support for terrorism.
The move comes in the wake of a deadly terror attack in Pahalgam, Jammu and Kashmir, on April 22, 2025, which claimed the lives of 26 Hindu pilgrims. India has blamed Pakistan-based terror outfits for the attack, further straining bilateral ties.
Speaking to reporters in New Delhi, Indian Foreign Minister S. Jaishankar said, “It is unacceptable for the international community to continue funding a nation that provides safe havens and financial support to terrorists. Aid must come with accountability.”
(Source: Business Standard)
India also reached out to non-permanent members of the UN Security Council and key IMF stakeholders, urging them to reconsider financial assistance to Pakistan until it takes verifiable action against terrorism.
In response, Pakistan’s Foreign Ministry dismissed India’s accusations as politically motivated. “India is attempting to sabotage our economic recovery efforts at a time when Pakistan is facing serious financial challenges,” said Foreign Office spokesperson Mumtaz Zahra Baloch.
(Source: Eurasian Times)
Despite India’s opposition, the IMF Executive Board approved the first tranche of Pakistan’s extended $7 billion financial program, releasing $1 billion this week. Discussions on the remaining $1.3 billion bailout package are still ongoing.
(Source: Reuters)
The development marks a significant diplomatic stance by India as it attempts to tie international financial aid to counterterrorism obligations. Analysts say this could set a precedent for future IMF deliberations involving countries accused of supporting terrorisme.