India Seeks Review of Financial Support to Pakistan from Global Agencies Following Terror Attack

India plans to urge global financial institutions, including the IMF, to reassess their financial aid to Pakistan. This move follows a terror attack in Pahalgam last month that resulted in the deaths of 26 tourists. A government source stated that India will request all multilateral agencies to review their loans and support to Pakistan.

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Authorities have identified five terrorists responsible for the Pahalgam massacre, including three Pakistani nationals. Defence Minister Rajnath Singh described Pakistan as a rogue state promoting global terrorism. Home Minister Amit Shah assured that those involved in the attack would face justice.

IMF and Financial Assistance

The IMF Executive Board is set to meet with Pakistani officials on May 9. They will conduct the first review of an extended funding facility and discuss a new arrangement under the resilience and sustainability facility. The board will consider a fresh USD 1.3 billion arrangement for Pakistan's climate resilience loan programme and evaluate an ongoing USD 7 billion bailout package.

As of December 31, 2024, the Asian Development Bank (ADB) has committed 764 public sector loans, grants, and technical assistance totalling USD 43.4 billion to Pakistan. ADB's current sovereign portfolio in Pakistan includes 53 loans and three grants worth USD 9.13 billion.

ADB and World Bank Contributions

The ADB has committed a USD 320 million loan for the Khyber Pakhtunkhwa Rural Roads Development Project. This project aims to upgrade approximately 900 kilometers of rural roads vulnerable to flooding in the province.

In January 2025, the World Bank approved a USD 20 billion lending package for Pakistan. This package aims to help the financially struggling country address its challenges.

India's diplomatic efforts aim to highlight Pakistan's alleged support for terrorism while seeking a reevaluation of international financial aid to its neighbour. By engaging with global agencies, India hopes to pressure Pakistan into addressing these concerns.

With inputs from PTI