8 hours ago
Last Updated:May 23, 2025, 16:53 IST
According to high-level government sources, backdoor talks have already commenced
The IMF included 11 conditions in its supplementary list for Pakistan's bailout. File image/X
The Monetary Fund’s decision to grant a loan to Pakistan disappointed India, but it has not daunted its resolve to maintain pressure on global institutions and countries to ensure Islamabad’s economic isolation.
However, in a significant development for India, the IMF included 11 conditions in its supplementary list for Pakistan’s bailout. These conditions require Pakistan to provide assurance of transparent fund usage and the availability of a regular budget.
The upcoming Financial Action Task Force (FATF) meeting poses another challenge, as it will examine money laundering and terror financing. India has been advocating for Pakistan’s inclusion on the grey list, which would be a considerable censure. According to high-level government sources, backdoor talks have already commenced.
India has activated its contacts. Top government sources reveal that a list of funding provided to Pakistan by the IMF, alongside a corresponding increase in Pakistan’s arms purchases, was presented to the financial body. “If this is not proof of misuse of funds, then what is?" India argues.
In preparation for the FATF meeting and the earlier IMF discussions, Indian embassies have been engaging with embassies and high commissions of European countries and FATF members. Furthermore, during her international visits, finance minister Nirmala Sitharaman has been in contact with her counterparts in Germany, France, and Italy.
A multi-party delegation has also been tasked with persuading FATF member countries to recognise that their money is essentially blood money.
Sources said that, according to public data, Pakistan spends on average around 18 per cent of its general budget on “defence affairs and services", while even the conflict-affected countries spend on average far less (10-14 per cent of their general budget expenditure). Further, Pakistan’s arms imports increased dramatically from 1980 to 2023 by over 20 per cent on average in the years when it received IMF disbursements in comparison to years when it did not receive the same.
Top government sources emphasise that while India respects the autonomy of institutions in disbursing funds, it has learnt that it must and will advocate for its interests. However, India asks, “How can European countries and institutions evade responsibility when countries like Pakistan misuse funds to fuel terrorism?"
Location : First Published:News india India Looks To Corner Pakistan In FATF, IMF By Stirring World's Conscience
