Fri May 09 17:10:00 UTC 2025: ## India Vetoes IMF Loan to Pakistan, Citing Terrorism Concerns
**NEW DELHI** – India has vehemently opposed a new International Monetary Fund (IMF) loan to Pakistan, citing concerns that the funds could be misused to finance terrorism. India boycotted the IMF executive board meeting where the loan was considered, arguing that Pakistan’s history of receiving IMF bailouts without meaningful reform, coupled with its support for cross-border terrorism, makes it a high-risk borrower.
While the Pakistani Prime Minister’s Office claims to have secured a $1 billion loan despite Indian objections, India maintains that the IMF’s approval of a $1 billion extended loan facility and consideration of a further $1.3 billion loan represent a grave risk. The Indian government released a statement highlighting Pakistan’s extensive debt to the IMF and its poor track record of implementing reforms. India further stressed that Pakistan’s continued support for cross-border terrorism poses a threat to regional stability and casts doubt on the responsible use of any further financial assistance. The statement also noted the significant influence of Pakistan’s military in its economic affairs, exacerbating concerns about potential misuse of funds.
India’s abstention from the vote, rather than a formal veto, reflects the IMF’s voting structure. Instead of a yes/no vote, directors can either vote in favor or abstain. India chose abstention to register its strong disapproval of the loan. The Indian government emphasized that providing further funds to Pakistan without addressing its underlying issues would damage the reputation of both financial institutions and lending nations.
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