"The IMF approved a loan payment to Pakistan, while India did not vote and strongly disagreed with the decision."

"India opposed the repeated IMF bailouts to Pakistan, saying they raise doubts about how well the IMF’s plans work for Pakistan or how well they are being followed and implemented.

"Several countries shared the concern that funds from institutions like the IMF could be misused by Pakistan for military or cross-border terrorism, according to a statement from the finance ministry."

IMF Approves $2.3 Billion Loan for Pakistan; India Raises Strong Objections Over Misuse Concerns

The International Monetary Fund (IMF) has approved two loan tranches for Pakistan—$1 billion under the Extended Fund Facility (EFF) and $1.3 billion under the Resilience and Sustainability Facility (RSF)—during a board meeting held on Friday. This brings the total disbursement to $2 billion within Pakistan’s ongoing $7 billion IMF program.

India abstained from voting and strongly opposed the move, citing Pakistan's poor track record with IMF programs. According to an official release by India’s Ministry of Finance, New Delhi expressed serious concerns over the possibility of Pakistan misusing international debt funds, including for state-sponsored cross-border terrorism.

India’s concerns about the effectiveness of IMF monitoring and program implementation were echoed by several other member nations. The finance ministry’s statement warned that such funds could be diverted for military use or terror-linked activities if not properly regulated.

Opposition parties have criticized the Indian government’s decision to abstain from voting on the IMF loan to Pakistan. Congress MP Jairam Ramesh pointed out that the Congress party had earlier demanded India vote against the loan during the IMF board meeting. “India has only abstained. The Modi government has chickened out. A strong NO would have sent a powerful signal,” Ramesh said.

Opposition Criticizes India’s Abstention on IMF Loan Vote for Pakistan

Opposition parties have criticized the Indian government’s decision to abstain from voting on the IMF loan to Pakistan. Congress MP Jairam Ramesh pointed out that the Congress party had earlier demanded India vote against the loan during the IMF board meeting. “India has only abstained. The Modi government has chickened out. A strong NO would have sent a powerful signal,” Ramesh said.

India Clarifies: IMF Does Not Allow Formal ‘No’ Vote on Loan Decisions

Government sources clarified that under IMF rules, countries cannot cast a formal “no” vote. Decisions are typically made by consensus, and while each of the 25 board members has a vote based on economic size, the system only allows countries to vote in favor or abstain. “There is no option to vote against a loan or proposal,” a government source explained, responding to criticism over India’s abstention on the Pakistan loan.

India Slams Pakistan’s Frequent IMF Bailouts, Cites Poor Track Record and Terror Funding Concerns

India strongly opposed the repeated IMF bailouts to Pakistan during the recent board meeting, questioning the country’s poor record in meeting IMF program goals. According to the Ministry of Finance, India raised serious concerns over both the effectiveness of IMF program designs for Pakistan and the risk of misuse of funds for state-sponsored cross-border terrorism.

The Indian government highlighted that Pakistan has received IMF disbursements in 28 of the last 35 years since 1989—including four separate bailout programs just since 2019. “If earlier programs had succeeded in creating a stable economic environment, Pakistan wouldn’t need yet another bailout,” the statement said. India argued this pattern raises questions about Pakistan’s commitment to reform, as well as the IMF’s oversight and implementation mechanisms.