India Raises Concerns Over Pakistan’s Loan Diversion Plans to IMF

India has urged the International Monetary Fund (IMF) to ensure that loans provided to Pakistan are not diverted to fund its defense expenditures. This appeal comes as Pakistan Prime Minister Shehbaz Sharif discussed a new loan program with IMF chief Kristalina Georgieva to address the country’s economic challenges.

The meeting, which took place on the sidelines of the World Economic Forum (WEF) Special Meeting in Riyadh, highlighted Pakistan’s efforts to secure a new long-term Extended Fund Facility (EFF) as its current standby arrangement (SBA) is set to expire. India’s concerns stem from Pakistan’s history of diverting funds meant for economic stability to military purposes. Pakistan’s chronic balance of payments crisis and its reliance on IMF bailouts have raised alarms in the region. India’s call for vigilance underscores the geopolitical tensions surrounding Pakistan’s economic recovery efforts and their potential implications for regional security.