New Delhi: Jammu and Kashmir Chief Minister Omar Abdullah has criticized the International Monetary Fund (IMF) for approving a $1 billion loan to Pakistan amidst escalating tensions between India and Pakistan. His remarks come after the IMF’s decision to release the loan on Friday, despite the ongoing military confrontations between the two neighboring nations.
“I’m not sure how the ‘International Community’ thinks the current tension in the subcontinent will de-escalate when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar, and so many other places,” Omar Abdullah posted on X, expressing his concerns over the IMF’s decision.
The loan comes as part of Pakistan’s economic reform program under the Extended Fund Facility (EFF), which aims to build macroeconomic sustainability and reduce vulnerabilities to natural disasters and climate change. The IMF’s Executive Board approved the initial review of the program, allowing for the immediate disbursement of approximately USD 1 billion. With this disbursement, the total financial assistance to Pakistan under this arrangement now amounts to about USD 2.1 billion.
However, the disbursement coincides with rising tensions on the India-Pakistan border, particularly after Pakistan launched weapon-carrying drones and missiles targeting Indian cities and military installations. The IMF’s decision to provide funding at this time has sparked criticism from India, which has raised concerns about Pakistan’s use of funds.
India’s Ministry of Finance questioned the efficacy of the IMF programs for Pakistan, citing its poor track record in adhering to the conditions of previous IMF loans. “Pakistan has been a prolonged borrower from the IMF with a very poor track record of implementation and adherence to the IMF’s program conditions. In the last five years, there have been four IMF programs, yet the country continues to require bailouts,” the statement read.
India further expressed concerns over the potential misuse of the loan funds, particularly fearing that it could be used to fund cross-border terrorism. The statement highlighted Pakistan’s military’s deep involvement in the country’s economic affairs, which it claimed could undermine any potential reforms introduced through IMF programs.
“Pakistan’s military continues to play an outsized role in domestic politics and the economy, even under a civilian government, which poses significant risks of policy slippages and reversal of reforms,” India’s Ministry of Finance added.
Tensions between India and Pakistan have intensified following a deadly terror attack in Jammu and Kashmir’s Pahalgam region last month, which resulted in the loss of 26 lives. India’s response to the IMF’s loan approval reflects the growing frustration over Pakistan’s actions amid an increasingly volatile regional situation.
