Modi govt caved to US pressure on IMF bailout for Pakistan: Jairam Ramesh

Congress MP Jairam Ramesh on Saturday criticised the BJP-led central government for abstaining from voting in the International Monetary Fund (IMF) Executive Board meeting when it considered fresh loans of $1.3 billion to Pakistan, saying that the government buckled under US pressure.

In a post on X, Ramesh argued that India abstained from voting on May 9 when there was a provision to vote "No" in the Executive Board meeting.

The Congress MP further pointed out that his party had already appealed to oppose the bailout "forcefully".

"Where there is a will, there is a way. The Modi Govt simply buckled under US pressure on May 9th at the IMF Executive Board meeting," he said on X.

"Defence Minister Rajnath Singh is now criticising the IMF for approving over $2 billion in loans to Pakistan on May 9th, 2025. On April 29th itself - before the Modi Govt woke up - the INC had said that the IMF Executive Board was meeting on May 9th to consider this issue and that India should oppose it forcefully," he further said.

"As it turns out, India only abstained on May 9th. Later, the Modi Govt's drumbeaters, cheerleaders, and apologists argued that this was the only option available to India," the Congress Rajya Sabha MP added.

He further claimed that Russia and India had earlier voted "No" in the IMF executive board meeting.

"This is a lie. There is indeed a provision to vote No in the Executive Board. Russia had voted No on a loan proposal to Ukraine in September 2016, and India herself had voted No on 11th September, 2005, on the issue of the expulsion of Zimbabwe," Ramesh said.

This comes after Defence Minister Rajnath Singh on Friday appealed to the International Monetary Fund (IMF) to reconsider funding to Pakistan and said Islamabad will use a large portion of these funds on terror infrastructure in its country.

"I believe Pakistan will spend a large portion of the funds received from the International Monetary Fund on terror infrastructure in its country....India wants the IMF to reconsider funding to Pakistan," Singh said, addressing Air Warriors at Bhuj Air Force Station.

Earlier, India abstained from voting on the International Monetary Fund's (IMF) review of a $1 billion Extended Fund Facility (EFF) and consideration of a fresh $1.3 billion Resilience and Sustainability Facility (RSF) for Pakistan, according to a statement released today by the Ministry of Finance.

In its official statement, India raised significant concerns regarding Pakistan's track record with previous IMF loans and the potential misuse of funds for "state-sponsored cross-border terrorism".

The statement highlighted Pakistan's long history as a "prolonged borrower" from the IMF, noting that the country has received disbursements in 28 of the past 35 years since 1989. More recently, Pakistan has initiated four different IMF programmes in just the last five years.