India asks IMF to review loans to Pakistan after Pahalgam terror attack

India has asked the International Monetary Fund (IMF) to review its loans to Pakistan, a government source told Reuters on Friday.

 

This request comes after a deadly attack on tourists in Phalgam, Jammu and Kashmir, which has made tensions worse between the two countries. In the attack, 25 tourists and a one local have been killed by the terrorists.

 

The Indian government believes Pakistan needs to be held accountable and has raised its concerns with the IMF, which gives financial help to countries in need.

 

India and Pakistan are nuclear-armed neighbours, and there are fears that this latest crisis could turn into a military conflict.

 

The Indian government officials say they have identified the terrorits and two of them are from Pakistan. However, Pakistan has denied any role in the attack and wants a neutral investigation. 

In response to the attack, India has stopped a key river Indus Waters Treaty (1960) with Pakistan. Pakistan also suspended the Shima Agreement (1972). Furthermore,  both countries have also shut their airspace to each other’s airlines.

 

Pakistan's dependence on IMF loans

 

Pakistan received a $7 billion bailout from the IMF last year to support its $350 billion economy. In March, it also got a new $1.3 billion loan to help with climate issues. Pakistan says these loans helped it avoid a financial crisis.

India has now told the IMF that it is worried about these loans and wants the IMF to review them. 

 

Pakistan admits its role in sponsoring terror

 

Meanwhile, Pakistan admitted its role in funding and supporting the terror activities from its soil; they defined it as a mistake from which they have learnt.  

Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari has said that Pakistan made mistakes in the past by having ties with terrorist groups, but the country has now taken steps to correct those mistakes.   

In an interview with Sky News on Thursday, Bilawal said, “It is not a secret that Pakistan has a past... As a result, we have suffered; Pakistan has suffered. We have gone through wave after wave of extremism. But as a result of what we suffered, we also learnt our lessons. We have gone through internal reforms to address this problem.”

 

His comments came soon after Defence Minister Khawaja Asif also admitted in a separate interview with Hakim that Pakistan had supported terror groups in the past. Asif said, “We have been doing this dirty work for the United States for about three decades... and the West, including Britain... That was a mistake, and we suffered for that...”

 

Bilawal agreed with this view, saying, “As far as Pakistan’s history is concerned, it is history, and it is not something that we are partaking in today. It is true that it is an unfortunate part of our history.”