In the wake of the deadly Pahalgam terror attack, India is stepping up pressure on global financial bodies to cut funding to Pakistan, accusing Islamabad of enabling terrorism.
Top government officials in New Delhi are preparing to formally urge international lenders like the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB) to revisit their financial support to Pakistan. The demand includes a call for stricter scrutiny of Pakistan’s loan programmes, especially a recent $1.3 billion climate-focused facility approved by the IMF in March.
According to sources, the Indian government is pushing for a review of these financial arrangements ahead of the IMF executive board’s meeting with Pakistan on 9 May. That session is expected to review Pakistan’s extended funding facility and assess a request for further assistance under the Resilience and Sustainability Trust.
India’s concerns are directly tied to the 22 April terror attack in Jammu and Kashmir’s Pahalgam region, which left several Indian civilians dead and was the deadliest such incident since the 2008 Mumbai attacks. Authorities believe the strike once again highlights Pakistan’s continued support for terrorist networks.
A policy note published by Soumya Bhowmick of the Observer Research Foundation strongly argued that global financial aid to Pakistan needs to be more tightly monitored. “The IMF must reassess its role and include counter-terrorism conditions in its programmes,” Bhowmick wrote, adding that unchecked funds risk “undermining regional and global stability.”
Last year, Pakistan secured a $7 billion bailout from the IMF to prevent a default and keep its fragile economy afloat. In addition to the IMF funding, the World Bank in January 2025 approved a separate $20 billion lending package aimed at supporting Pakistan’s economic recovery.
Now, India wants that financial tap to be tightened.
The government is also calling on the Financial Action Task Force (FATF), the global watchdog on money laundering and terror financing, to consider putting Pakistan back on its grey list. That move would subject Pakistan to tougher monitoring and possibly restrict its access to international funding.
With economic challenges already piling up in Islamabad, any disruption in external financing could deal a serious blow to Pakistan’s recovery efforts.
As India raises its voice on the global stage, the message is clear: support for terrorism cannot be ignored, and financial accountability must be enforced.
