NEW DELH: India is set to urge global multilateral agencies, including the International Monetary Fund (IMF) and the World Bank, to review financial assistance to Pakistan in the aftermath of the recent terror attack in J&K’s Pahalgam which claimed the lives of 26 civilians.
“We will be asking all multilateral agencies to review the loans and support to Pakistan,” a government source told news agency PTI, signaling a broader diplomatic offensive against Islamabad.
Investigators have identified five terrorists, including three Pakistani nationals, as being responsible for the massacre.
Defence minister Rajnath Singh has also called Pakistan a “rogue state” fueling global terrorism. Echoing the sentiment, home minister Amit Shah vowed that the perpetrators of the “cowardly” Pahalgam attack would be brought to justice.
The diplomatic move comes ahead of a key IMF executive board meeting on May 9, where Pakistan’s officials are scheduled to discuss the first review of their Extended Fund Facility and a request under the Resilience and Sustainability Facility. The board will also evaluate a fresh $1.3 billion climate resilience loan and continue review of a $7 billion bailout package.
In addition to the IMF, India is also expected to raise concerns with the Asian Development Bank (ADB) and the World Bank.
As of December 31, 2024, ADB had committed $43.4 billion to Pakistan through 764 loans, grants, and technical assistance initiatives. Its current sovereign portfolio includes 53 loans and three grants totaling $9.13 billion, including a $320 million loan for rural road development in Khyber Pakhtunkhwa.
In January 2025, the World Bank approved a $20 billion aid package for Pakistan aimed at helping the country overcome deepening economic challenges.