Jammu and Kashmir Chief Minister Omar Abdullah on Saturday criticised the International Monetary Fund’s (IMF) decision to continue funding Pakistan, warning that the move would “embolden” Islamabad rather than help de-escalate hostilities with India.
“I’m not sure how the ‘International Community’ thinks the current tension in the subcontinent will be de-escalated when the IMF essentially reimburses Pakistan for all the ordnance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places,” Abdullah said in a post on X.
His remarks came after the IMF on Friday approved the first review of Pakistan’s economic reform program under the Extended Fund Facility (EFF), authorizing a disbursement of approximately USD 1 billion. The IMF stated the disbursement reflected “strong program implementation” contributing to Pakistan’s “continuing economic recovery.”
In addition, the IMF Executive Board approved Pakistan’s request for $1.3 billion under the Resilience and Sustainability Facility (RSF).
India voiced serious concerns about the decision, arguing that continued IMF assistance fails to address long-standing structural weaknesses and raises security risks.
India abstained from the IMF vote on approving the loan to Pakistan, as the Fund’s rules do not allow member countries to cast a formal “no” vote.
Indian noted that Pakistan has received IMF disbursements in 28 of the past 35 years, including four separate programs since 2019. “Had the previous programs succeeded in establishing a stable macroeconomic framework, Pakistan would not be seeking yet another bailout,” India stated, questioning the credibility of IMF oversight and Islamabad’s commitment to reform.
India also raised alarms over the Pakistani military’s growing role in economic governance. A 2021 UN report identified military-linked businesses as Pakistan’s largest conglomerate—an issue that persists today, with the army playing a leading role in Pakistan’s Special Investment Facilitation Council. India cautioned that such interference increases the likelihood of policy slippages and reversals.
Further, India referenced an internal IMF report titled Evaluation of Prolonged Use of IMF Resources, which acknowledged the perception that political factors influence IMF lending to Pakistan. With Pakistan’s debt at critical levels, India argued the country is increasingly seen as “too big to fail,” leading to repeated bailouts without accountability.
Most critically, India warned that in the absence of strict safeguards, IMF funds—being fungible—could be misused to finance state-sponsored terrorism.
“Rewarding such behavior sends a dangerous signal to the international community, exposes donors to reputational risks, and undermines the values global institutions are meant to uphold,” India stated.