India has raised significant concerns regarding the efficacy of International Monetary Fund (IMF) bailout programs for Pakistan, particularly highlighting the potential misuse of funds for military and state-sponsored terrorism. This came during a crucial meeting of the IMF on May 9, 2025, where the agency was reviewing a $1 billion Extended Fund Facility and a $1.3 billion Resilience and Sustainability Facility for Pakistan.
While India abstained from voting on the bailout proposal, it made its objections clear. An official statement from the Indian government noted, "As an active and responsible member country, India raised concerns over the efficacy of IMF programs in case of Pakistan given its poor track record, and also on the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism." This statement reflects India's long-standing apprehension regarding Pakistan's handling of previous IMF assistance.
India pointed out that since 1989, Pakistan has received disbursements from the IMF in 28 of those years, and in the last five years alone, it has engaged in four separate IMF programs. The Indian government argued that if past programs had successfully established a sound macroeconomic environment, Pakistan would not be seeking yet another bailout. The statement further emphasized that Pakistan's increasing debt burden makes it a "too big to fail" debtor for the IMF, raising alarms about the implications of continued financial support.
India's position is that rewarding Pakistan for its ongoing sponsorship of cross-border terrorism sends a dangerous message to the global community, exposing funding agencies and donors to reputational risks. The statement elaborated, "The concern that fungible inflows from international financial institutions, like IMF, could be misused for military and state-sponsored cross-border terrorist purposes resonated with several member countries." However, the IMF's response is constrained by procedural and technical formalities, limiting immediate action on India's concerns.
In addition to financial issues, India highlighted the Pakistani military's deep-rooted interference in the nation's economic affairs, which poses risks to the implementation of IMF-mandated reforms. The statement pointed out that even with a civilian government in place, the military continues to exert considerable influence over domestic politics and the economy. "The situation has not changed for the better; rather the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan," the statement noted, underscoring the persistent military involvement in governance.
On the same day, tensions escalated along the India-Pakistan border as heavy artillery fire targeted homes and religious sites in several villages. Reports indicate that Indian air defense intercepted between 400 and 500 Pakistani missile drone attempts aimed at military installations. The Indian military activated its Unmanned Aerial Systems, including the S400 Triumf and indigenous Akash missiles, to thwart these attacks.
This escalation follows a series of airstrikes conducted by India on May 6-7, 2025, targeting what it described as terrorist infrastructure within Pakistan. These strikes were viewed as a continuation of India's retaliatory actions following previous incidents, including the 2016 Uri attack and the 2019 Pulwama attack. The Pakistani military's response included artillery shelling that reportedly resulted in civilian casualties along the Line of Control, raising further concerns about the humanitarian impact of the ongoing conflict.
Indian officials claim that over the past decade, 350 civilians have been killed and 800 injured in terrorist attacks linked to Pakistan, emphasizing the long-standing security challenges faced by India. The Indian Foreign Secretary, Vikram Misri, provided a briefing to the nation, using strong language to describe the nature of the attacks and the need for decisive action. He noted, "Terror training camps were marked and hit from Sawai Nala to Bahawalpur," reinforcing India's commitment to targeting terrorism at its source.
Meanwhile, on May 9, multiple drones were spotted in the Chheharta and Airport Road areas of Amritsar, adding to the rising tension along the border. While these drones were largely neutralized by the Indian air defense system, the incident caused panic among local residents. Police Commissioner Gurpreet Singh Bhullar assured the public that there was no immediate cause for alarm and urged them to follow safety protocols during the blackout period.
As the situation continues to evolve, experts suggest that Pakistan may avoid direct war but could intensify shelling and missile attacks along the Line of Control. Observers note that India's diplomatic efforts have been effective so far, but the country remains resolute in maintaining a strong stance against perceived threats.
The current geopolitical climate underscores the complexity of the India-Pakistan relationship, characterized by a cycle of military engagement and diplomatic maneuvering. As both nations navigate this precarious landscape, the international community watches closely, aware that the consequences of escalation could have far-reaching implications for regional stability.
In light of these developments, India’s position at the IMF meeting serves as a reminder of the broader challenges posed by Pakistan's historical reliance on international financial assistance and the ongoing specter of terrorism that complicates any potential resolution to the conflict.
