Fri May 09 16:57:17 UTC 2025: **India Abstains from IMF Vote on Pakistan Loan, Citing Concerns Over Misuse of Funds**
NEW DELHI, May 9, 2025 – India announced today that it abstained from a vote on providing additional funding to Pakistan through the International Monetary Fund (IMF), citing concerns over Pakistan’s “poor track record” of repayment and the potential misuse of funds for cross-border terrorism. The IMF approved a $1 billion disbursement from an existing loan and a further $1.3 billion in new funding.
The Ministry of Finance issued a statement expressing concerns about the effectiveness of previous IMF programs in Pakistan, noting that the country has received 24 loans from the IMF since 1958. India argued that the continued provision of loans rewards Pakistan’s actions and creates a dangerous precedent. The statement highlighted that the IMF’s procedural limitations prevented a stronger response to these concerns despite support from other member countries.
The Congress party criticized the government’s abstention, arguing that a stronger “no” vote would have sent a clearer message. However, the Ministry of Finance maintained that India’s abstention, along with its voiced concerns, served to highlight the serious issues surrounding the continued lending to Pakistan. The statement emphasized the need for global financial institutions to consider moral and ethical implications in their lending practices. India’s action underscores the ongoing tensions between the two countries.
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