India Abstains on IMF Vote Over Pakistan, Citing Terrorism Concerns

India opted to abstain from voting on the International Monetary Fund's review of a $1 billion Extended Fund Facility and a proposed $1.3 billion Resilience and Sustainability Facility for Pakistan. The Ministry of Finance released a statement outlining concerns over Pakistan's history with IMF loans and the possibility of funds being misused for terrorism.

The statement emphasized Pakistan's status as a 'prolonged borrower,' citing its receipt of disbursements in 28 of the past 35 years and four new programs in the last five years. The Ministry questioned the effectiveness of these programs, suggesting either a flaw in their design or in Pakistan's implementation and monitoring.

Concerns were not limited to economic factors. The statement highlighted the influence of Pakistan's military in economic matters, posing risks of policy slippages and reform reversals. It referenced a UN report describing the military's business entrenchment and its role in the Special Investment Facilitation Council, raising worries about misuse of IMF funds. Despite these concerns, the IMF continued with its review process.

(With inputs from agencies.)