India has asked the International Monetary Fund (IMF) to reassess its lending to Pakistan following an attack in Indian-administered Kashmir, according to a senior Indian government official.
The move comes as tensions between the two nuclear-armed neighbours surge after gunmen opened fire on Hindu pilgrims last week in the disputed Jammu and Kashmir region, killing 26 people. India claims two of the three attackers were Pakistani nationals, an allegation Islamabad has strongly denied, calling instead for an independent investigation.
In response to the violence, both countries have taken retaliatory steps. India has suspended a key river-sharing treaty and barred Pakistani flights from its airspace. Pakistan has responded in kind.
Amid the escalating crisis, New Delhi has raised concerns with the IMF about the $7 billion bailout programme Pakistan secured last year, along with an additional $1.3 billion climate resilience loan approved in March. The Indian government has urged the Fund to review these disbursements, though it has not publicly detailed its objections.
Pakistan’s finance ministry adviser Khurram Schehzad said the country remains in compliance with IMF requirements. “The programme is well on track,” Schehzad told Reuters, noting that recent talks in Washington were positive and drew strong investor interest.
The IMF and India’s finance ministry have yet to comment.
The flare-up has drawn international concern. US Vice President JD Vance said Washington hoped Pakistan would cooperate with India in locating those responsible for the attack, which threatens to destabilise an already fragile regional balance.
