India on Friday (May 9) expressed strong reservations during an International Monetary Fund (IMF) Executive Board meeting over the approval of additional funding to Pakistan. Citing Pakistan’s “poor track record” with international loans and the risk of misuse of IMF resources for state-sponsored cross-border terrorism, India abstained from the vote on a $1.3 billion Resilience and Sustainability Facility (RSF).
The IMF board convened to vote on disbursing $1 billion from an ongoing $7 billion Extended Fund Facility (EFF), while also considering the new RSF to assist Pakistan’s struggling economy.
“As an active and responsible member country, India raised concerns over the efficacy of IMF programs in the case of Pakistan, given its poor track record, and also on the possibility of misuse of debt financing for state-sponsored cross-border terrorism,” the Ministry of Finance (MoF) said in a statement.
According to the IMF, Pakistan has accessed its loan facilities 24 times since 1958. The latest disbursement, if approved, would be its 25th. The MoF noted that Pakistan has received IMF funds in 28 out of the last 35 years since 1989 — including four programs since 2019 alone.
“If earlier programs had succeeded in establishing sound macroeconomic policies, Pakistan would not be seeking yet another bailout,” the statement said. India also questioned whether the fault lies in IMF’s program design, its monitoring, or Pakistan’s implementation.
India emphasized that repeated financial support despite Pakistan’s record risks enabling continued sponsorship of terrorism and undermines the integrity of global institutions. “Rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies to reputational risks, and makes a mockery of global values,” the MoF added.
While India’s concerns reportedly resonated with several IMF member countries, the ministry said the IMF’s actions remain constrained by “procedural and technical formalities.”
“This serious gap highlights the urgent need to incorporate moral and ethical considerations into the procedures of global financial institutions,” the statement noted, adding that the IMF had acknowledged India’s concerns and noted its abstention.
Meanwhile, the Congress party criticized the government’s decision to abstain instead of opposing the vote outright. “India has only abstained from the vote. The Modi government has chickened out. A strong NO would have sent a powerful signal,” Congress General Secretary Jairam Ramesh posted on X.
