‘On one hand sanctions, on the other reward for countries that support terrorism’: PM Modi at G7

Prime Minister Narendra Modi, during an address at the G7 Outreach Session in Canada, said it is imperative for the countries to ensure together that any nation that supports terrorism, pays the price for it. He also urged the leaders of G7 to act against terrorism. 

"For global peace and prosperity, our thought and policy must be clear - if any country supports terrorism, it will have to pay the price for it…On one hand, we are quick to impose all kinds of sanctions based on our own preferences. On the other hand, countries that openly support terrorism are rewarded," he said in a clear reference to IMF’s bailout package to Pakistan, days after India asked them to reconsider the $2.1 package amid the military action between both the nations. 

After much backlash, the IMF defended its bailout package and said Pakistan “had indeed met all of the targets”. “It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program,” said the IMF. 

The Asian Development Bank (ADB) had also approved an $800 million package for Pakistan. India told ADB that repeated bailouts by the IMF indicate failed economic reforms in Pakistan.

Following the Pahalgam terror attack, India highlighted Pakistan's tacit support for terrorism at international financial institutions and urged them to halt future funding and financial packages to the country.

According to sources, New Delhi expressed serious concerns over the misuse of funds, pointing to Pakistan's increasing defence expenditure despite a declining tax-GDP ratio. The tax-GDP ratio in Pakistan dropped from 13 per cent in 2018 to 9.2 per cent in 2023, while defence spending rose during the same period. India also raised issues regarding Pakistan's weak governance and the significant role of its Army in economic matters. 

After PM Modi’s address, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said in a post on X, “PM reiterated India’s stand against terrorism & thanked the leaders for condemning the ghastly Pahalgam terror attack. He urged them to galvanise global action against terrorism & underlined the need to take strict action against those who promote & support terrorism." 

PM Modi’s address came on the back of the April 22 Pahalgam attack that resulted in the death of 26 people, and prompted India to initiate Operation Sindoor to target terror infrastructure in Pakistan and Pakistan-occupied Kashmir. He also emphasised the importance of addressing the concerns and priorities of the Global South. He stated that India considers it its responsibility to bring the voice of the Global South to the world stage. Modi said, "Moving forward on the fundamental principles of availability, accessibility, affordability, acceptability, India has chosen the path of inclusive development."