India set to target Pakistan's wallet? IMF, World Bank aid on the line after Pahalgam massacre

In the wake of the Pahalgam terror attack, India is reportedly set to ask global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan.

India is reportedly set to appeal to global multilateral institutions, including the International Monetary Fund (IMF), to reassess their financial support and loan disbursements to Pakistan in the wake of the brutal terrorist attack in Pahalgam last month that claimed the lives of 26 tourists.

"We will be asking all multilateral agencies to review the loans and support to Pakistan," a government source was quoted as saying in a PTI report, indicating a strong diplomatic offensive against Islamabad.

Pakistan Nationals Among Attackers Identified

Investigating authorities have confirmed the involvement of five terrorists in the massacre — including three Pakistani nationals — underscoring India's longstanding accusations of cross-border terrorism sponsored by Pakistan.

Top Indian Ministers Lash Out at Pakistan

Defence Minister Rajnath Singh on Thursday slammed Pakistan, calling it a "rogue state" that has been "fuelling global terrorism." Home Minister Amit Shah also issued a stern warning, saying the terrorists behind the "cowardly" Pahalgam attack "would not be spared."

IMF to Hold Crucial Pakistan Loan Review on May 9

The IMF Executive Board is scheduled to meet Pakistani officials on May 9 to conduct the first review of an extended funding facility. The agenda includes discussions on a fresh USD 1.3 billion loan under the climate-focused Resilience and Sustainability Facility, as well as an ongoing USD 7 billion bailout package.

Massive Lending from ADB and World Bank Under Scrutiny

As of December 31, 2024, the Asian Development Bank (ADB) had committed 764 public sector loans, grants, and technical assistance worth USD 43.4 billion to Pakistan. Currently, ADB’s sovereign portfolio in the country includes 53 loans and 3 grants totaling USD 9.13 billion. Notably, this includes a USD 320 million loan to upgrade nearly 900 km of rural roads in Khyber Pakhtunkhwa.

Meanwhile, the World Bank, in January 2025, approved a substantial USD 20 billion lending package to support Pakistan in tackling its economic and infrastructure challenges.