India's fund strike on Pakistan: Islamabad to seek $1.3 bn bailout from IMF, New Delhi may advocate for pause in funding

As the border tensions between India and Pakistan exacerbate due to the missile and drone strikes by the Pakistan Army on military targets in India, Islamabad will seek a $1.3 billion bailout package for the country. The package will reportedly be aimed at stabilising Pakistan's economy, which is on tenterhooks. 

The IMF board meeting will evaluate Pakistan's economic performance under its current program and decide on loan disbursements, extensions, or policy changes.

Parameswaran Iyer, India's executive director at the IMF, will be present at the crucial meeting and is likely to raise strong concerns on funding to Pakistan, India Today TV reported, citing sources. India is likely to seek a pause in the funding for its western neighbour due to the country's support for terrorism on its soil. 

Earlier in the day, the Economic Affairs Division of the Pakistan government asked for more loans from its international partners. It said that Pakistan had suffered heavy losses after the retaliation by the Indian Armed Forces. 

“Govt of Pakistan appeals to International Partners for more loans after heavy losses inflicted by enemy. Amid escalating war and stocks crash, we urge international partners to help de-escalate. Nation urged to remain steadfast (sic),” the Economic Affairs Division of the Pakistan government said in a now-deleted post. 

On Thursday, Foreign Secretary Vikram Misri noted that India's representative at the IMF will share New Delhi's stance during the meeting. He emphasized the need for the IMF board to consider the facts carefully before approving any assistance for Pakistan.

Misri highlighted the lack of success in previous bailouts, pointing out that Pakistan has received 24 packages but few were effective. He called for board members to reflect deeply and thoroughly evaluate the situation before making any decisions.

Last year, Pakistan secured $7 billion in bailout funding and received a $1.3 billion climate resilience loan in March.