India has raised serious concerns over the International Monetary Fund’s (IMF) decision to support Pakistan under the Extended Fund Facility (EFF) and to consider a new Resilience and Sustainability Facility (RSF) programme.
According to an official statement, India questioned the effectiveness of IMF’s programmes, highlighting Pakistan’s poor implementation record. India expressed apprehension that IMF resources may be misused, particularly for cross-border, state-sponsored terrorism.
From 1989 to 2024, Pakistan received IMF assistance for 28 out of 35 years. In the last five years alone, it has been under four IMF programmes. India argued that if previous interventions had worked, Pakistan would not need another bailout. India questioned both the design and enforcement of IMF programmes in Pakistan’s case.
India also raised alarm over the Pakistani military’s entrenched role in economic and policy decisions, which often leads to policy reversals. The Indian delegation cited a 2021 United Nations report describing military-linked enterprises as Pakistan’s largest business group. Despite civilian rule, the military remains deeply involved, now even leading Pakistan’s Special Investment Facilitation Council.
India further highlighted an internal IMF report acknowledging the perception that political factors significantly influence aid to Pakistan. Repeated bailouts have increased Pakistan’s debt burden while the IMF becomes its largest lender, India said.
Raising a moral concern, India stated that rewarding a country actively supporting terrorism undermines global values and funding credibility. Despite similar concerns from other nations, India said the IMF’s response remains procedural and technical, lacking moral accountability.
India’s statement and abstention during the vote were formally noted by the IMF.
