Bhuj, Gujarat — Union Defence Minister Rajnath Singh on Friday raised strong objections to the International Monetary Fund's (IMF) recent disbursal of funds to Pakistan, warning that the financial assistance could be misused to support terror-related infrastructure.
Speaking at the Bhuj Air Force Station in Gujarat, Singh criticized the IMF’s decision to release the second tranche of USD 1.023 billion under the Extended Fund Facility programme to Islamabad earlier this week. “I believe Pakistan will spend a large portion of the funds received from the International Monetary Fund on terror infrastructure in its country,” Singh remarked, expressing India’s serious concerns regarding the implications of continued financial aid to its western neighbour.
Calling on the global financial institution to reassess its approach, the Defence Minister said, “India wants the IMF to rethink funding to Pakistan,” stressing that such support may inadvertently embolden extremist networks operating within the region.
Singh also used the occasion to commend the Indian Armed Forces for the swift and precise execution of Operation Sindoor, which drew international attention for its tactical efficiency. “The duration people take to have breakfast, you used that duration to deal with enemies,” he told service personnel, highlighting the speed and decisiveness of the military response.
“You crossed into enemy territory and dropped missiles. The echoes of that operation were not confined to India’s borders—the whole world heard it,” he added, lauding the courage and professionalism of the armed forces.
His comments came a day after he visited Jammu and Kashmir to review the prevailing security situation along the Line of Control (LoC) and the International Border.
The IMF, in its latest program review, directed Pakistan to craft its budget with a projected primary surplus of 1.6% of GDP, requiring the generation of approximately Rs 2 trillion above non-interest expenditures. This comes as part of broader fiscal reforms aimed at stabilizing Pakistan’s fragile economy.
The USD 1.023 billion disbursed on May 14 is the second installment of a USD 3 billion standby arrangement finalized last year, which helped Pakistan avert a looming financial crisis. The nation, heavily reliant on multilateral support, has now received at least 25 IMF bailout packages since joining the fund.
According to IMF data, Pakistan’s foreign exchange reserves stood at USD 10.3 billion at the end of April 2025, up from USD 9.4 billion in August 2024. These reserves are expected to rise further to USD 13.9 billion by June 2025, with continued growth projected in the medium term.
However, India’s growing concerns about the misuse of international aid for hostile activities underscore the increasing complexities surrounding regional security and the role of global financial institutions in conflict-sensitive environments.
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