In a significant diplomatic development, India has expressed reservations over the timing of the IMF’s financial support to Pakistan, citing regional security concerns. According to government sources, Finance Minister Nirmala Sitharaman flagged the issue with top European counterparts and the IMF leadership, stating that the current geopolitical climate makes it an inappropriate moment for such disbursement.
While India is not opposed in principle to Pakistan receiving IMF assistance, officials have emphasized that the situation along the borders demands careful consideration. “We are not against Pakistan getting development financing from the IMF, but it’s simply not the right time due to the border situation,” a senior government source clarified.
The concern was officially communicated to IMF Managing Director Kristalina Georgieva by Finance Minister Sitharaman before her recent trip to Milan. During her visit, she also held bilateral meetings with her German, Italian, and French counterparts, where she reiterated India’s stance on the matter.
India’s approach has been diplomatic, aimed at highlighting regional risks rather than obstructing the IMF programme altogether. In line with this, India abstained from voting during the IMF Executive Board’s deliberations on the aid package for Pakistan.
Moreover, Indian officials have pointed to historical data from the IMF itself, which they say indicates a pattern: “Every time IMF gives a loan to Pakistan, there has been increased arms procurement in the same year,” a government source noted. This pattern, they argue, raises red flags about how the financial aid might be utilized, especially amid ongoing security tensions in the region.
India’s message is clear — it’s not about blocking development funds, but about ensuring responsible timing and usage. The concern is rooted in national and regional security interests, not in financial rivalry or political opposition.
As the international community continues to evaluate Pakistan’s economic support needs, India’s cautious stance underscores the importance of aligning financial aid with broader regional stability.
