Fri May 23 12:34:58 UTC 2025: Here’s a summary of the text and a rewritten news article:

**Summary:**

India has expressed concerns to the IMF regarding financial aid to Pakistan, specifically citing the timing of disbursements following a terror attack and alleging potential misuse of funds for arms procurement. India’s Finance Minister directly urged the IMF to reconsider the aid. The IMF defends its Extended Fund Facility (EFF) with Pakistan, stating that the funds are specifically for balance of payments issues, misuse is prevented with safeguards, and program progress is regularly reviewed. The IMF also points out that the aid program was approved *before* the recent terror attack. India is also planning to approach the World Bank and the Financial Action Task Force with similar concerns about Pakistan’s financial aid and potential terror funding.

**News Article:**

**IMF Defends Pakistan Aid Program Amid India’s Concerns of Terror Funding**

**Washington D.C.** – The International Monetary Fund (IMF) has defended its financial assistance program to Pakistan, the Extended Fund Facility (EFF), after India raised serious concerns about the timing and potential misuse of the funds. Indian officials, including Finance Minister Nirmala Sitharaman, directly contacted the IMF Managing Director to express their worries, especially regarding the disbursement of aid following the Pahalgam terror attack and escalating military activity.

India alleges that Pakistan may be diverting IMF funds to procure arms, pointing to data indicating an increase in Pakistan’s arms imports during years when it receives IMF aid. Indian officials also raised concerns that the funds could be indirectly funding terrorist activities.

The IMF, however, insists that the EFF is specifically designed to address Pakistan’s balance of payments problems and that strict safeguards are in place to prevent misuse, including unauthorized government spending or lending. “IMF financing is expressly for resolving balance of payments problems, and deviation from established programme conditions…will impact future reviews,” stated IMF Communications Chief Julie Kozack. The IMF also pointed out that the EFF program, which includes a $7 billion deal, was approved by its board and had undergone a progress review *before* the recent terror attack in Pahalgam. The IMF has already disbursed $2.3 billion in two tranches to Pakistan.

The Indian government is reportedly planning to take its concerns to the World Bank regarding a potential $20 billion aid package to Pakistan, and to the Financial Action Task Force (FATF), urging the anti-terror funding watchdog to put Pakistan back on its ‘grey list.’

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