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India Requests IMF to Review Loans to Pakistan Amid Rising Tensions
India urges IMF to review loans to Pakistan amid tensions after Pahalgam attack; Pakistan says IMF program is on track and successful.
ND
by News Desk
2025-05-02
India Requests IMF to Review Loans to Pakistan Amid Rising Tensions

India has formally requested the International Monetary Fund (IMF) to review its financial assistance program to Pakistan, according to a report by the foreign news agency Reuters.

An Indian government official confirmed the development but declined to provide further details regarding the nature or timing of the request.

The move comes amid heightened diplomatic tensions between the two countries following the Pahalgam attack in Indian-occupied Kashmir, where 26 tourists were killed. India has claimed that two of the three alleged attackers were Pakistani nationals — a claim strongly rejected by Islamabad, which has called for a transparent and impartial international investigation into the incident.

In response to India's request, Khurram Shahzad, Advisor to Pakistan’s Finance Minister, told Reuters that the IMF program is progressing smoothly.
“The IMF program is completely moving in the right direction. The recent IMF review has been successfully completed,” he stated.

Pakistan is currently under a $7 billion IMF bailout program signed in 2023. In addition, in March 2025, the country received a $1.3 billion Climate Resilience Loan aimed at supporting sustainable recovery and disaster preparedness.

These financial supports have helped stabilize Pakistan’s fragile $350 billion economy, averted bankruptcy risks, and improved macroeconomic indicators.

Analysts view India's move as an attempt to pressure Pakistan diplomatically and economically at a time of regional uncertainty. However, global financial institutions like the IMF are expected to evaluate assistance programs based on financial metrics, reforms, and commitments — not geopolitical tensions.

The IMF has not yet officially commented on India’s request.

The situation remains fluid, and any potential review or response from the IMF will be closely monitored in the coming days as both countries continue their diplomatic maneuvers.

 
Tagged:

IMF

PakistanEconomy

Geopolitics

IndiaPakistanTensions

PahalgamAttack
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