India has made it clear that its decision to abstain from a recent International Monetary Fund (IMF) vote on a loan to Pakistan was not out of silence or indifference. According to government sources, India used the abstention strategically—because IMF rules don’t allow a formal “no” vote—and took the opportunity to strongly record its objections.
Through its action, India sent a clear message: it does not support the IMF’s continued financial aid to Pakistan, especially when the country has failed to show meaningful reform or accountability.
Why India Chose to Abstain, Not Vote “No”
India did not support the loan approval but couldn’t vote against it directly due to the IMF’s internal voting procedures. In such situations, abstention is the strongest available option to express disagreement.
“India abstained from the recent IMF vote on approving a loan to Pakistan not due to a lack of opposition, but because IMF rules do not permit a formal ‘no’ vote,” said a source familiar with the matter.
This approach allowed India to formally document its objections, making sure the concerns were visible to other member countries and global financial observers.
Repeated IMF Support Hasn’t Led to Real Change, Says India
One of India’s major concerns is Pakistan’s long history of taking loans without showing real, lasting change in its economic management.
“India questioned the effectiveness of ongoing IMF assistance, noting that Pakistan has received support in 28 of the past 35 years including four programs in just the last five without meaningful or lasting reform,” a source said.
In India’s view, this shows a cycle of dependence that has not produced stable, transparent, or accountable economic systems in Pakistan.
Military’s Grip on Economy Undermines Reform
Another strong objection from India focused on the role of the Pakistani military in managing the country’s economy. India warned that with the military continuing to dominate major economic decisions, any hope for sustainable reform becomes weak.
“India strongly highlighted the Pakistani military’s continued dominance in economic affairs, which undermines transparency, civilian oversight, and sustainable reform,” the source noted.
Even though civilian governments hold office, India pointed out that the military often controls key economic decisions, further weakening the reforms expected by global lenders like the IMF.
India Raises Red Flag on Terror Links
India’s most serious concern, however, is the issue of cross-border terrorism. New Delhi has long accused Pakistan of supporting terrorist activities targeting India, and it warned that giving international funding to such a country could have global consequences.
“India firmly opposed providing funds to a country that continues to sponsor cross-border terrorism, warning that such support carries reputational risks for global institutions and undermines international norms,” the source said.
India believes that continuing to support Pakistan through IMF loans sends the wrong signal to the world, especially at a time when global institutions are expected to take a firm stance on terrorism and its supporters.