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As diplomatic relations between India and Pakistan hit a new low following the April 22 terrorist attack in Pahalgam, India has officially voiced its concerns about the proposed IMF bailout for Pakistan. Foreign Secretary Vikram Misri stated on Friday that India will present its perspective at the International Monetary Fund (IMF) board meeting scheduled today.
“You must be aware that the IMF meeting is underway. We will put forward our perspective and our views with the IMF members. It is up to the Board as to what decision they take,” said Misri during a press briefing in New Delhi.
India Mounts Opposition to Pakistan’s IMF Loan
While Misri refrained from disclosing the specific points India would raise, government sources indicated that New Delhi is opposed to Pakistan receiving the next tranche of IMF bailout—reportedly worth USD 1 billion—citing Islamabad’s continued support for terrorism.
India’s opposition at the IMF comes as part of a broader strategy to isolate Pakistan diplomatically and economically in the wake of the Pahalgam attack that killed 26 tourists.
Indus Waters Treaty Suspended Until Terror Halted
Following the attack, India also announced the suspension of the Indus Waters Treaty of 1960, a major bilateral water-sharing agreement. Misri confirmed, “The Indus Waters Treaty is in abeyance, and I have nothing further to add to the decision that was announced by the Cabinet Committee on Security.”
The treaty, brokered by the World Bank, allocated 80% of the Indus River System’s water to Pakistan, while India retained rights to 20%. With the treaty now suspended, experts warn that Pakistan’s water supply could be significantly impacted in the long term.
World Bank Clarifies Its Role
Responding to media speculation about potential World Bank intervention, World Bank President Ajay Banga clarified that the institution has no authority beyond facilitation in the treaty.
“There’s a lot of speculation… but it’s all bunk. The World Bank’s role is merely as a facilitator,” Banga was quoted as saying by the Press Information Bureau (PIB) after meeting Prime Minister Narendra Modi on Thursday evening.
India to Push FATF Action Against Pakistan
India is also expected to approach the Financial Action Task Force (FATF) to seek the re-inclusion of Pakistan in the grey list, a move that would further restrict Islamabad’s access to global financing and intensify scrutiny over its terror funding activities.
Strategic Measures Following Pahalgam Attack
India has launched Operaion Sindoor, a precision military response targeting terror camps in Pakistan and Pakistan-occupied Kashmir. The foreign policy and economic measures taken since then—including airspace restrictions, diplomatic downgrades, and treaty suspensions—form a comprehensive pressure campaign aimed at compelling Pakistan to end its support for cross-border terrorism.
