India challenges IMF funding for Pakistan over terror financing concerns

India has officially raised its concerns about the International Monetary Fund's (IMF) financial assistance to Pakistan during a board meeting in Washington. On May 9, 2025, India's Foreign Secretary Vikram Misri highlighted the need for a comprehensive review of the financial support being extended to Pakistan, based on the country's past failures to adhere to IMF conditions. Misri criticized Pakistan for allegedly misusing these funds to support military intelligence operations and various terrorist organizations, specifically naming Lashkar-e-Toiba and Jaish-e-Mohammed in his statements. This assertion is underpinned by India's experience in observing Pakistan's history of incomplete implementation of IMF bailout packages. Furthermore, the external military control over Pakistan’s economic governance was noted as a significant issue that complicates the country’s reform commitments. The recent military operation against terrorist infrastructure initiated by India resonates with its concerns, as India believes that continued financial aid sends the wrong message to the international community and increases the risk of funds being diverted toward terrorism. Despite India’s abstention from voting on new IMF packages for Pakistan, the country’s objections were formally acknowledged during the proceedings, reflecting a broader coalition of supportive countries concerned about the misuse of IMF resources. India urged the need for structural reforms in the IMF’s decision-making process to prevent ethical considerations from being overlooked in favor of political motivations in lending practices.