Will India block IMF loan to Pakistan Friday? What will US and China do, will they join New Delhi or...

At a time when there is a war-like situation between India and Pakistan, Islamabad's actions and its economic future will be decided somewhere else. The International Monetary Fund (IMF) will hold a meeting in Washington on Friday to decided whether it should give a $7 billion loan to Pakistan. Considering the India-Pakistan tensions, will India block Pakistan's bid to get the loan? Will New Delhi vote against Pakistan's loan proposal? 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.

India dropped a major hint on Thursday, a day before the proposed IMF Executive Board meeting. Talking to journalists, Foreign Secretary Vikram Misri said the multilateral fund should look "deep within" and take into account the facts before generously bailing out the country. He also asked how many bailout packages had been extended to Pakistan over the last three decades and had the fund had been utilised. He said, "I think the case about Pakistan should be self-evident to those people who generously open their pockets to bail out this country…."

(Foreign Secretary Vikram Misri at a press conference in New Delhi)

According to the IMF website, the world body has helped the Islamic nation 25 times since it became a member of the IMF in 1950. Islamabad had an outstanding loan amount of $6.23 billion on March 30, 2025. The IMF loan application for a $7-billion aid package to Islamabad was approved in September 2024. There were seven review meetings on the ongoing 37-month-long Extended Fund Facility programme throughout the bailout. The IMF may release the next tranche of approximately $1 billion to Pakistan.

IMF Executive Board Meeting

However, the Executive Board of the IMF will meet on 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. 

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. 

(IMF Executive Board meeting)

 

All eyes on IMF Executive Board meeting

The Executive Board of the IMF will meet on 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. 

(Pakistani masses struggle for basic commodities.)

Analysts believe that though New Delhi may not be able to block the loan to Pakistan, it will certainly put the Islamic nation in an embarrassing position with allegations of supporting and financing terrorism. Secondly, other nations may get an indication not to invest in Pakistan or assist it economically or financially. Pakistan is left with enough foreign reserves to meet the requirement of only a few weeks. 

Pakistan's economy is in shambles

Its currency has plummeted to the level of 281 US dollars, inflation is hovering around 10-12%, and people fight over basic commodities like flour and rice unemployment rate is at 5.7%. Pakistan's international trade is abysmal, with exports reaching $35.8B in 2023, making it the 66th-largest exporter in the world. On the other hand, India had an international trade of 778.21 billion, with exports worth $341.11 billion in 2023-24.