India abstains from voting on IMF's bailout package for Pakistan, cites Islamabad's 'poor track record'

India abstains from voting on IMF's bailout package for Pakistan, cites Islamabad's 'poor track record'

Washington: India on Friday abstained from voting on the International Monetary Fund’s (IMF) proposed USD 1.3 billion bailout package for Pakistan. New Delhi cited Islamabad's 'poor track record', raising concerns over the efficacy of IMF programs in the case of Pakistan. India also highlighted the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism from the Pakistani side. 

In a press release, the government of India said, "A 2021 UN report described military-linked businesses as the 'largest conglomerate in Pakistan'. The situation has not changed for the better; rather, the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan."

India has also emphasised that extending the bailout package to Pakistan amounts to "rewarding continued sponsorship of cross-border terrorism", and it sends a "dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values." 

India's statement reads, "In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 years. In the last 5 years, since 2019, there have been 4 IMF programmes. Had the previous programmes succeeded in putting in place a sound macroeconomic policy environment, Pakistan would not have approached the Fund for yet another bailout programme." 

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India pointed out that such a track record calls into question either the effectiveness of the IMF programme designs in the case of Pakistan or their monitoring, or their implementation by Pakistan.

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A day ahead of a crucial meeting of the International Monetary Fund (IMF) in Washington, India on Thursday hinted that it could communicate its view to the global financial body on its bailout package for Pakistan.

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Foreign Secretary Vikram Misri said India's executive director at the IMF will put forward the country's position during the meeting of the board of the global body on Friday. "I'm sure that our executive director will put forward India's position," he said at a media briefing.

"The decisions of the board are a different matter. But I think the case with regard to Pakistan should be self-evident to those people who generously open their pockets to bail out this country," he said. Misri noted that many of the 24 bailout packages sanctioned by the IMF for Pakistan had not reached a successful conclusion.

The foreign secretary's comments came amid escalating tensions between India and Pakistan since New Delhi's military strikes on Wednesday against terrorist infrastructure in Pakistan and Pakistan-Occupied-Kashmir.

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