In a significant strategic shift, India is stepping up its efforts to economically isolate Pakistan on the global stage. With Pakistan\u2019s economy already under severe stress, New Delhi is reportedly working across multiple fronts \u2014 including FATF grey-listing, scrutiny of World Bank aid, and challenging IMF assistance \u2014 to hold Islamabad accountable for its continued links to terror financing.<\/p>\n
India is preparing to submit a dossier at the upcoming FATF plenary in June, calling for Pakistan to be returned to the grey list. According to Indian officials, Pakistan has consistently failed to dismantle terror financing networks, despite earlier promises.<\/p>\n
Pakistan had been removed from the FATF grey list in October 2022, but India argues that the move was premature and politically driven. Being on the FATF grey list severely limits a country\u2019s access to global financial markets and increases international scrutiny \u2014 a status India wants reinstated for Pakistan.<\/p>\n
In a more aggressive stance, India is likely to challenge a $20 billion World Bank support package expected to be considered for Pakistan in June.<\/p>\n
Sources indicate that India will demand stringent accountability mechanisms to ensure the funds are not diverted to terror infrastructure or military expansion. This could significantly disrupt Islamabad\u2019s external funding lifeline, especially as the country grapples with soaring debt and growing default risks.<\/p>\n
India has also raised objections over recent IMF disbursements to Pakistan, amounting to $1 billion under the Extended Fund Facility. While New Delhi abstained from voting on IMF loans totaling $2.3 billion, it issued a firm warning over the potential misuse of funds for cross-border terrorism.<\/p>\n
In a strongly worded statement, India argued that rewarding Pakistan sends a dangerous message to the global community and \u201cmakes a mockery of global values.\u201d The Finance Ministry noted that Pakistan has received IMF disbursements in 28 of the last 35 years, often without fulfilling necessary reform conditions.<\/p>\n
India also recalled that in 2023, it had urged the IMF to include clauses preventing Pakistan from using aid for defence spending or third-country debt repayments. India highlighted how Pakistan used past IMF packages to increase military expenditure, while delaying payments to power producers and oil suppliers.<\/p>\n
These moves represent a broader recalibration in India\u2019s approach to Pakistan, especially in the aftermath of recent terror incidents. Instead of reacting militarily alone, New Delhi is now using diplomatic, economic, and institutional tools to mount pressure.<\/p>\n
India is actively:<\/p>\n
Engaging FATF members like France and the US to back renewed grey-listing;<\/p>\n<\/li>\n
Sharing intelligence with Western allies linking Pakistan\u2019s agencies to Kashmir terror attacks;<\/p>\n<\/li>\n
Calling out Pakistan\u2019s duplicity in global anti-terror platforms;<\/p>\n<\/li>\n
And using its influence in the IMF and World Bank to condition aid and expose misuse.<\/p>\n<\/li>\n<\/ul>\n
By pushing back through global financial institutions, India aims to hold Pakistan accountable on the world stage \u2014 not just through rhetoric, but through tangible economic consequences.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a significant strategic shift, India is stepping up its efforts to economically isolate Pakistan on the global stage. With Pakistan\u2019s economy already under severe stress, New Delhi is reportedly working across multiple fronts \u2014 including FATF grey-listing, scrutiny of World Bank aid, and challenging IMF assistance \u2014 to hold Islamabad accountable for its continued […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-9263","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=9263"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9263\/revisions"}],"predecessor-version":[{"id":9848,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9263\/revisions\/9848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/9847"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=9263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=9263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=9263"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=9263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}