India to Urge IMF, Multilateral Agencies to Reassess Funding to Pakistan Over Pahalgam Terror Attack » Capital News

NEW Dehli May 4 – India is set to urge global multilateral lenders, including the International Monetary Fund (IMF), to reconsider financial support to Pakistan following last month’s deadly terror attack in Pahalgam, Jammu and Kashmir, that left 26 tourists dead.

“We will be asking all multilateral agencies to review the loans and support to Pakistan,” a senior Indian government source said, amid mounting diplomatic pressure on Islamabad.

Indian authorities have identified five terrorists — including three Pakistani nationals — as responsible for the brutal massacre. The incident has sparked outrage across the country, with Defence Minister Rajnath Singh labelling Pakistan a “rogue state” accused of fuelling global terrorism.

Home Minister Amit Shah also condemned the attack, vowing that the perpetrators would not go unpunished.

The development comes ahead of the IMF Executive Board’s scheduled meeting with Pakistani officials on May 9. The meeting will review Islamabad’s progress under the Extended Fund Facility (EFF) and discuss a request for a fresh arrangement under the Resilience and Sustainability Facility (RSF).

The IMF is also expected to assess a new $1.3 billion loan proposal for climate resilience, as well as progress under an ongoing $7 billion bailout package.

As of December 31, 2024, the Asian Development Bank (ADB) had committed 764 public sector loans, grants, and technical assistance initiatives totaling $43.4 billion in Pakistan. Its current sovereign portfolio includes 53 loans and three grants worth $9.13 billion. Among the projects is a $320 million loan for the Khyber Pakhtunkhwa Rural Roads Development Project, aimed at upgrading 900 kilometers of rural roads vulnerable to floods.

In January 2025, the World Bank approved a $20 billion lending package to support Pakistan’s economic recovery amid mounting fiscal challenges.

India’s diplomatic move is part of a broader strategy to isolate Pakistan internationally over its alleged support for cross-border terrorism.