Omar Abdullah raised questions on IMF’s decision to grant $1 billion loan to Pakistan|
Former Jammu & Kashmir chief minister Omar Abdullah on Saturday launched a scathing attack on the International Monetary Fund (IMF) after it approved a fresh $1 billion loan for Pakistan, even as tensions between India and Pakistan are at their peak.
Omar wrote in his Twitter post: “I’m not sure how the international community thinks the current tension in the subcontinent will be escalated when the IMF essentially reimburses Pakistan for all the orenance it is using to devastate Poonch, Rajouri, Uri, Tangdhar & so many other places.”
IMF decision – questions on timing
The IMF announced on Friday that it has completed an initial review of economic reforms under Pakistan’s Extended Funds Facility (EFF) program, and in return, an immediate disbursement of $1 billion to Pakistan. The disbursement came at a time when Pakistan’s military was attacking western Indian cities and military bases with missiles and weaponised drones, including regions like Jammu, Poonch, Uri, Tangdhar, Rajouri.
India’s strong objection – risk of terror funding
India has also expressed its disappointment at the IMF’s move. On Friday, the Ministry of Finance said in a statement: “Pakistan has a poor track record with the IMF. Since 1989, Pakistan has taken loans from the IMF for 28 of the 35 years, but the implementation of reforms has been very weak.”
The Finance Minister also said: “Interference by the Pakistani military is a major risk of policy slippages and reform reversals in economic policies. The effectiveness of the IMF program also becomes questionable in this context.”
Background – Tension escalated after the Pahalgam Attack
In April, there was a terrorist attack in the Pahalgam area of Jammu & Kashmir in which 26 people lost their lives. After this, tension between India and Pakistan has increased considerably. India has taken military action like Operation Sindoor, and Pakistan tried to respond to it with missiles and drones, which were successfully intercepted by the Indian defense system.
