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India asks IMF to review loans to Pakistan, Indian government source says

  • India has urged the International Monetary Fund to reassess the $7 billion bailout assistance provided to Pakistan amid rising tensions following a fatal attack in Kashmir on April 22.
  • The request follows India’s plan to seek Pakistan’s re-listing on the FATF grey list due to alleged ongoing financial support for terrorism linked to the Pahalgam attack.
  • Pakistan secured the bailout in July 2024 and was removed from the FATF grey list in 2022 after making reported progress on financial compliance, but India contests Pakistan’s sustained efforts.
  • Indian officials argue these funds risk being used for terror activities, while Pakistan says the IMF programme is on track and denies involvement in the Kashmir attack, calling for a neutral probe.
  • These moves highlight India’s strategy to combat terrorism financing via international pressure and could influence IMF support and regional stability amid continued hostility between the neighbors.
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Firstpost News broke the news in Mumbai, India on Friday, May 2, 2025.
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