Defence Minister Raises Alarm Over IMF Loan to Pakistan

Defence Minister Rajnath Singh has called on the International Monetary Fund (IMF) to reconsider its recent approval of a loan exceeding $1 billion to Pakistan, citing fears that a significant portion could be diverted to finance terror infrastructure.

Speaking at the Bhuj Air Force Station, Singh emphasized that countering terrorism has become a core component of India's National Defence Doctrine, beyond traditional security concerns.

India's Stance on Pakistan's Financial Assistance

India previously expressed reservations during the IMF Executive Board meeting, abstaining from voting due to Pakistan's history of poor compliance with IMF conditions and its repeated requests for assistance. Concerns were also raised about the potential diversion of funds towards cross-border terrorism through state channels.

The Role of Pakistan's Military in Economic Affairs

A key concern highlighted by India is the dominant role of Pakistan’s military in its economic affairs, complicating efforts at structural reform. The military's influence, as noted in a United Nations report, has been identified as significant, with military-affiliated businesses described as Pakistan's 'largest conglomerate'.