New Delhi, May 2: India will be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly terror attack in Pahalgam last month, which killed 26 tourists.
“We will be asking all multilateral agencies to review the loans and support to Pakistan,” a government source said.
The IMF Executive Board is scheduled to meet Pakistan officials on May 9 for first review of the extended funding facility, and request for an arrangement under the resilience and sustainability facility.
The IMF Board will evaluate fresh USD 1.3 billion arrangement for Pakistan under its climate resilience loan programme. It will also assess an ongoing USD 7 billion bailout package.
As of December 31, 2024, the Asian Development Bank (ADB) has committed 764 public sector loans, grants, and technical assistance totalling USD 43.4 billion to Pakistan. ADB’s current sovereign portfolio in Pakistan includes 53 loans and 3 grants worth USD 9.13 billion.
ADB committed a USD 320 million loan for the Khyber Pakhtunkhwa Rural Roads Development Project to upgrade around 900 kilometers of flood-susceptible rural roads in the province.
In January 2025, the World Bank approved USD 20 billion lending package for Pakistan for the cash-strapped country to overcome its challenges.
Pakistan, which received a $7 billion bailout package from the IMF last year to stabilise its economy and avoid default, was also granted an additional $1.3 billion climate resilience loan in March. The aid is considered vital for the $350 billion economy as it grapples with structural reforms and high debt.
India’s concerns come in the wake of a brutal attack in Kashmir that killed 26 people on April 22. The Indian government has identified three attackers—two of whom it claims are Pakistani nationals—and labelled them as “terrorists.” Islamabad has denied any involvement and called for a neutral, international investigation.
The Indian government has taken a series of retaliatory steps, including suspending the crucial Indus Waters Treaty and closing its airspace to Pakistani flights. Now, it has also urged the IMF to re-evaluate the conditions and disbursement of its financial aid to Pakistan.