Economic ‘surgical attack’ on Pakistan! Islamic nation to starve of funds as India may take THIS step at IMF

The IMF Executive Board will meet on May 9, on the loan proposal to Pakistan and vote in the wake of the Pahalgam attack and escalation in India-Pakistan tensions. Indian strategy to make Pakistan starve of funds when it needs it most.

International Monetary Fund or IMF

Will India block Pakistan’s bid to get a $7 billion loan from the International Monetary Fund (IMF)? Will New Delhi vote against Pakistan’s loan proposal in the next meeting of the Executive Board, scheduled for May 9? Traditionally, India has been abstaining from such votes and not putting hurdles in its way so that the loan proposal gets approved. However, New Delhi is most likely to change its stand in the wake of the Pahalgam terrorist attack, in which 26 people were killed. The Resistance Front, considered a facade for the Pakistan-based Lashkar-e-Taiba, claimed the responsibility, though it denied its role later. 

All eyes on IMF Executive Board meeting

The Executive Board of the IMF will meet Friday in Washington, D.C., in this context, when India-Pakistan relations have reached their lowest point. Tension between the two neighbours has escalated to a new height as they look into each other’s eyes with full military preparation. A small spark may ignite a full-fledged war at any moment. Pakistan’s application for a $7 billion loan was accepted for consideration last year. 

 

How can India block loan to Pakistan?

After putting too many conditions on pressure for economic reforms, the IMF agreed to discuss it threadbare. India has a share of 2.36%, which is insufficient to block or approve any proposal. However, New Delhi can seek the help of others with bigger shares. While the US has 16.5%, Japan has a 6.1% voting share. On the other hand, China, the “all weather friend” of Pakistan, has a voting share of 6.09%. It is difficult to predict if Washington and Tokyo will vote against the proposal, as they too have geopolitical and business interests. 

India’s next move: FATF?

This vote is also important because it may indicate India’s strategy of pushing Pakistan back to the grey list of the Financial Action Task Force (FATF). Set up in 1989, the 40-member
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