IMF program ‘on track,’ Pakistan dismisses India's loan scrutiny request

Finance adviser says Pakistan’s IMF talks went smoothly, with investor interest high

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Pakistan has dismissed India’s request to the International Monetary Fund (IMF) to review Islamabad’s financial support programme, calling it a politically motivated move amid heightened regional tensions following the April 22 attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK).

An adviser to Pakistan’s finance ministry confirmed on Friday that the country’s $7 billion IMF bailout, secured last year, remains “well on track” and critical for macroeconomic stability.

Islamabad also received an additional $1.3 billion in climate resilience funding in March 2025.

“This programme is not just stabilising Pakistan—it’s building confidence,” said finance adviser Khurram Schehzad. “The latest IMF review went smoothly, and our meetings with global financial institutions in Washington reflected high investor interest.”

India’s move to pressure the IMF comes as the two nuclear-armed neighbours impose reciprocal suspensions on treaties, diplomatic exchanges, and airspace access, deepening hostilities after New Delhi blamed Pakistan for the Pahalgam attack without presenting evidence.

Islamabad has strongly rejected the accusations and called for an impartial international investigation.

Officials argue that India’s attempt to involve the IMF is an extension of its political campaign to isolate Pakistan diplomatically.

Neither India’s finance ministry nor the IMF have publicly responded to Pakistan’s concerns.

The standoff has triggered global alarm, with US Vice President JD Vance urging both countries to avoid military escalation and cooperate in addressing terrorism.

Pakistan maintains that its commitment to counterterrorism is longstanding and globally recognised.

Airspace closures, the suspension of the Indus Waters Treaty, and tit-for-tat diplomatic expulsions have further strained the fragile regional balance.