 "A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., U.S. File image/ Reuters")
In the aftermath of the terror attack in Pahalgam, India might oppose a $1.3 billion International Monetary Fund loan to Pakistan, citing the country’s “support to terrorism” in an upcoming board meeting.
The Economic Times quoted a source familiar with the development as saying, “There is a view that support to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up.”
On May 9, the IMF board is set to review a proposed $1.3 billion loan for Pakistan as part of its climate resilience program. At the same meeting, it will also assess Pakistan’s progress on policy commitments tied to the existing $7 billion bailout package.
In the previous meeting, India had abstained from voting on Pakistan’s bailout package. But this time around, New Delhi will vote against giving the loan to the neighbouring country, saying that it misuses the funds.
Islamabad secured the $7 billion Extended Fund Facility last summer to help claw its way out of an economic crisis, with an immediate disbursement of about $1 billion.
The review, if cleared and approved by the lender’s board, could unlock another tranche of funding for cash-strapped Pakistan ahead of its annual budget, which is usually presented in June.
The programme has played a key role in stabilising Pakistan’s economy, and the government has said the country is on course for a long-term recovery.
Meanwhile, External Affairs Minister S Jaishankar has spoken to his counterparts from seven non-permanent member nations of the UN Security Council amid speculations about India’s possible response to the Pahalgam terror attack.
Impact Shorts
More ShortsCiting “cross-border linkages” to the horrific attack, India has promised severe punishment to those involved in the April 22 strike that killed 26 civilians.
Jaishankar spoke to his counterparts from Algeria, Greece, Guyana, Panama, Slovenia, Sierra Leone and Somalia and discussed the Pahalgam attack.
With inputs from agencies