Even though the IMF has approved a loan of one billion dollars to the bankrupt Pakistan, India has left no stone unturned in exposing Pakistan as a haven for terrorism. India told the IMF and the whole world how Pakistan is cultivating and supporting terrorism. In such a situation, giving any kind of loan to it is very dangerous.
Even though the terror hub Pakistan has got alms from IMF, India has presented a picture of how dangerous it is to give loan to this ‘Terroristan’ of the world. After the Pahalgam terror attack, tension between India and Pakistan is at its peak. The world knows that Pakistan has been a big shelter for terrorism.
The kind of financial help Pakistan has been getting from the international community, it has not used it for the welfare of the people of Pakistan but to flourish terrorism. In such a situation, India tried to present the true picture of Pakistan before IMF approved Pakistan’s loan. Let us also tell you how India tried to explain to the whole world under the IMF that how dangerous it is to give loan to Pakistan?
Pakistan’s track record is poor
India had expressed concern over the bailout package and program for Pakistan in the IMF’s executive board meeting on Friday. India also abstained from voting during this period. It also said that Pakistan has been a debtor to the IMF for a long time. Pakistan has never followed the conditions of the IMF. Due to which its track record has been very poor. India said that due to continuous financial assistance, Pakistan has become very indebted, ironically it is a ‘huge debtor’ for the IMF.
Money may be spent to spread terror
India expressed doubts about the effectiveness of IMF initiatives given Pakistan’s historical record. In addition, India raised the possibility that the package received from the IMF may be spent to support terrorism. In the 35 years since 1989, Pakistan has received a large loan from the IMF in 28 years. Talking about the last five years, money has been received under 4 IMF programs. India said that if the previous programs had been successful in creating a solid macro-economic policy environment, Pakistan would not have to approach the fund for another bail-out program. The Finance Ministry release said that India said that such a track record raises questions about the effectiveness of IMF program designs in the case of Pakistan or their monitoring or their implementation by Pakistan.
Approval from IMF
According to the announcement of the Prime Minister’s Office (PMO) of Pakistan, the IMF approved the immediate disbursement of $1 billion to Pakistan as part of the ongoing extended fund facility. An official communication from his office said that Prime Minister Shahbaz Sharif expressed satisfaction over the approval of the $1 billion installment for Pakistan by the IMF and the failure of India’s arbitrary strategy against it. Meanwhile, India pointed out that the policy reforms of Pakistan’s army in economic matters threaten stability to a great extent. India said that despite having an elected government of the common people, the army has considerable influence on both the political scenario and economic decisions. According to a 2021 United Nations report, the army is also one of the largest business groups in Pakistan.
Credibility gets spoiled
India said that constantly rewarding those who promote cross-border terrorism sends a dangerous message to the global community. It also puts the reputation of funding agencies and donors at risk and makes a mockery of global values and undermines universal principles. Although many member countries share concerns about the potential misallocation of resources from international financial institutions such as the IMF to military activities and state-sponsored terrorism, the IMF’s actions are constrained by institutional protocols and technical requirements.