Congress urges govt to oppose USD 1.3-billion IMF loan to Pakistan over Pahalgam bloodbath

The Congress on Tuesday urged the government to oppose USD 1.3-billion International Monetary Fund (IMF) loan to Pakistan in the aftermath of the Pahalgam terror attack that left 26 persons dead and at least 20 injured on April 22.

Addressing reporters, Congress leader Supriya Shrinate said, "Pakistan is involved in anti-India activities and terrorism. As earlier said by our party leader Jairam Ramesh, the government must oppose the IMF's loan to Pakistan."

India could oppose a proposed USD 1.3-billion IMF loan to Pakistan at the upcoming board meeting on May 9. The IMF board at the meeting will discuss a new loan for Pakistan under its climate resilience loan programme. It will also conduct a review of the ongoing USD 7-billion bailout package, including progress with the policy milestones.

India had earlier abstained from voting on the bailout package given to Pakistan to support its wobbly economy. This time, India could vote against the IMF to help Pakistan, citing misuse of the funds for terrorism.

The IMF and Pakistan had in July 2024 reached a deal for a USD 7-billion package under the extended fund facility. The programme required Pakistan to put in place sound policies and reforms to strengthen macroeconomic stability, address deep structural challenges, and create conditions for a stronger, more inclusive and resilient growth.