India Abstains from $1.3 Billion IMF RSF Bailout for Pakistan, Citing Terrorism Concerns

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Updated May 9, 2025, 04:40 PM

India has abstained from voting on a proposed $1.3 billion Resilience and Sustainability Facility (RSF) bailout package for Pakistan by the International Monetary Fund (IMF), amid escalating tensions between the two nations. The Indian government raised concerns over Pakistan's history of unsuccessful IMF programs, including a $1 billion Extended Fund Facility (EFF), and the potential misuse of funds for cross-border terrorism.

Foreign Secretary Vikram Misri stated that India would strongly present its position at the IMF meeting and share its views with other member countries. India highlighted Pakistan's poor track record with IMF programs, noting that Pakistan has been a prolonged borrower with frequent disbursements over the past 35 years, specifically mentioning 28 years of disbursements since 1989 and 4 IMF programs since 2019.

India also pointed out the risks associated with Pakistan's military interference in economic affairs, which could lead to policy slippages and reversal of reforms. A 2021 UN report described military-linked businesses as the 'largest conglomerate in Pakistan', and the military now plays a leading role in the Special Investment Facilitation Council of Pakistan. The Indian Finance Ministry expressed opposition to fresh IMF loans to Pakistan, emphasizing the possibility that the funds could be misused for funding terrorism.

The IMF has taken note of India's abstention and its concerns about the effectiveness of IMF programs in Pakistan, describing Pakistan as a 'too big to fail debtor', and the need for ethical reforms in IMF procedures.

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Sources

youtube.com(3)economictimes.indiatimes.com aajtak.in etnownews.com

Press Trust of India

@PTI_News

India opposes fresh IMF loans to Pakistan, saying funds could be misused for funding cross-border terrorism: Finance Ministry statement

Economic Times

@EconomicTimes

India abstains from voting on Pakistan’s bailout package at IMF meeting https://t.co/Z6NIydgf6f

TIMES NOW

@TimesNow

#BREAKING India Red Flags IMF Lending to Pak: - Cites 'Risk of Fund Misuse for Terror' - 'Need ethical reforms in IMF procedures' @NavikaKumar shares more details. https://t.co/jSjaAVkyIp