India Abstains From Vote, Registers Strong Dissent As IMF Clears Loan Tranche To Pakistan

The International Monetary Fund (IMF) has approved more than $2 billion in loans for Pakistan. This includes $1 billion under a $7 billion loan programme and another $1.3 billion under a separate programme to support sustainability and resilience.

India did not support this decision and chose not to vote during the IMF board meeting on Friday. The Indian government said it is worried about how Pakistan has used international loans in the past. India also fears that Pakistan might use some of this money to support terrorism across the border.

According to India’s Ministry of Finance, the country expressed strong opposition during the meeting. India said Pakistan has a poor track record with previous IMF loans and warned that the funds could be misused for military or terrorist activities. The concerns shared by India were also supported by some other countries in the meeting.

India Criticizes IMF Loan to Pakistan; Opposition Questions Government’s Stand

The International Monetary Fund (IMF) recently approved a loan of over $2 billion for Pakistan. India did not vote in favour of the loan but chose to abstain from the vote, raising serious concerns about Pakistan’s history of misusing such funds.

Opposition Questions India’s Abstention

Congress party leader Jairam Ramesh said the government should have clearly voted “no” to the loan. He said that just staying neutral (abstaining) was not enough and a strong “no” would have sent a clearer message.

India Says IMF Doesn’t Allow ‘No’ Votes

Government sources explained that the IMF rules do not allow countries to vote “no.” They can either vote “yes” or choose to abstain. So, India showed its opposition by not supporting the loan.

India’s Concerns About Pakistan’s Track Record

The Indian government raised several points during the IMF meeting:

Pakistan has taken IMF loans many times but has failed to follow through on its promises.
Since 1989, Pakistan has received IMF money in 28 of the past 35 years.
In the last five years alone, Pakistan has received four IMF bailouts.
India argued that if past loans had been successful, Pakistan wouldn’t need another bailout now. This shows either the IMF’s plans are not working or Pakistan is not following them properly.

Worries About Military Control in Pakistan

India also said that Pakistan’s military has too much control over the economy. Even though there is a civilian government, the army still plays a big role in politics and business. A 2021 UN report called military-owned companies the biggest business group in Pakistan. India said the army now has a major role in Pakistan’s Special Investment Facilitation Council too.

India Warns of Misuse of IMF Funds

India warned that Pakistan might use the money for harmful purposes, including terrorism. The government pointed to the risk that Pakistan could misuse the funds instead of fixing its economy. India also cited an IMF report that said there is a belief that political reasons influence the IMF’s support for Pakistan. Because of repeated bailouts, Pakistan now owes so much that the IMF may feel it cannot let the country fail—making it “too big to fail.”

India Calls for More Caution from the IMF

Foreign Secretary Vikram Misri said the IMF needs to take a hard look at the facts before giving money to Pakistan again. He said the IMF should be more careful and not keep giving bailouts without real change.

India On IMF Loans To Pakistan

Foreign Secretary Misri said that IMF loans to Pakistan have been indirectly funding Pakistan’s military intelligence operations, including groups such as Lashkar-e-Toiba (LeT) and Jaish-e-Mohammed (JeM). He added that given its timing, it can also be used to fuel its ongoing cross-border terrorism activities, particularly against India.