NEW DELHI: Despite the setback in the IMF, where India failed to stop the multilateral agency from extending a loan of $2.4 billion to Pakistan, the Indian government would continue to oppose access of funding from these agencies. The Indian government is going to oppose the World Bank's decision to fund Pakistan’s development programme when the matter comes up for discussion next month, a top government source told TNIE. The World Bank is likely to discuss a $20 billion lending package for Pakistan in June.
The sources also said that the government will also press for inclusion of Pakistan in the Grey list of Financial Action Task Force (FATF), when a review comes up in September this year. Pakistan was removed from the FATF list in October 2022, helping it attract investments and avail overseas loans. Sources told TNIE that Pakistan could not meet the conditions for removal of the country from the grey list, yet it was removed from the list of countries on ‘increased monitoring’ for terror financing.
On the issue of IMF extending the loan of $2.4 billion, the government source said that India tried its level best – met with the finance ministers of many European Countries -including Germany, France and Italy – but could not stop the IMF from approving the bailout package to Pakistan.
“They had already made up their mind (on approving the loan to Pakistan),” said the source on the condition of anonymity.
However, the source quoted above expressed satisfaction that the IMF has set 11 additional conditions for letting Pakistan use the funds.
The government source said that India is not opposed in principle to Pakistan’s development funding by the IMF or World Bank, but it was opposed to the timing of the approval.
The source further says that the IMF’s own assessment shows that Pakistan’s arms purchases increase every time it has funded the country, yet they went ahead and approved the loan.