 "India asks IMF to review loans to Pakistan as tensions rise after Pahalgam attack")
As tensions between India and Pakistan escalated after a deadly terror attack in Jammu and Kashmir’s Pahalgam, New Delhi has asked the International Monetary Fund (IMF) to review loans disbursed to the neighbouring country, according to a Reuters report, citing Indian government source on Friday.
After the attack, which claimed 26 lives, mostly tourists on April 22, both the countries unveiled a series of measures including shutting their airspace to each other’s airlines and India suspending a key river water-sharing agreement.
New Delhi has named the three assailants—two of whom it claims are Pakistani nationals—and labeled them as “terrorists.” Islamabad has rejected any involvement and has called for an impartial investigation.
Pakistan obtained a $7 billion bailout package from the IMF last year and received an additional $1.3 billion climate resilience loan in March.
The bailout is crucial to Pakistan’s $350 billion economy, and the government claims it has helped stabilise the country and avert a potential default.
India has raised concerns with the IMF regarding its lending to Pakistan and has requested a review, according to a government source cited by Reuters, though no further details were provided.
According to Reuters, neither the IMF nor India’s finance ministry has responded to requests for comment.
The advisor to Pakistan’s finance minister said the IMF programme is “well on track”.
“The latest review has been done well and we are completely on track,” Reuters quoted advisor Khurram Schehzad, as saying, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
Impact Shorts
More Shorts“We did about 70 meetings … interest has been very high for investing and supporting Pakistan as the economy turns around,” Schehzad added.
The soaring tensions between the two countries has drawn global attention and calls for cooling tempers.
US Vice President JD Vance said on Thursday that Washington hoped Pakistan would cooperate with India to hunt down Pakistan-based assailants.
With inputs from agencies
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