Pakistan has firmly dismissed India’s request for the International Monetary Fund (IMF) to reassess its loan programmes, asserting that its $7 billion bailout remains “well on track” and is essential for the country’s macroeconomic stability.
India’s appeal to the IMF follows a deadly attack in Pahalgam, Indian-administered Kashmir, on April 22, which resulted in the deaths of 26 tourists. India alleges that two of the attackers were Pakistani nationals, a claim that Pakistan denies, calling instead for a neutral investigation.
In response to the attack, India has suspended a vital river-sharing treaty and both nations have closed their airspace to each other’s airlines.
Pakistan’s finance ministry has emphasized that discussions with the IMF have been productive, with investor interest remaining high. The IMF board is scheduled to review the programme on May 9, including a proposed $1.3 billion climate resilience loan.
Global powers, including the United States and the European Union, have urged both nations to de-escalate tensions and focus on cooperation to address terrorism.
