Pahalgam Attack: The Executive Board of the International Monetary Fund (IMF) is meeting on May 9. In this, Pakistan's $1.3 billion agreement to deal with climate change will be evaluated. Apart from this, a bailout package of $7 billion will also be discussed. According to sources, it is being told that India can challenge the proposed $1.3 billion loan for Pakistan in the next meeting of the IMF.

Board approval will be required for the loan

According to information given to ET by a source, when the loan will be mentioned in the board meeting, the subject of Pakistan's support to terrorism will also be discussed. An agreement was reached between Pakistan and the IMF in July 2024 for a $7 billion package under the Extended Fund Facility. Its purpose is to help bring Pakistan's faltering economy back on track.

This deal is part of a 37-month bailout program. That is, this loan will be released in installments in 37 months. The first installment was given in September 2024, which was $1.3 billion. Now the board's approval is needed to release the next installment of $1 billion. Earlier, India had refused to vote on the bailout package given to support the economy of its neighboring country Pakistan, which is going through an economic crisis.

India took several strict actions

According to the source, this time India can give a negative vote against the assistance given to Pakistan from the IMF, citing misuse of funds and other technical reasons. After the terrorist attack in Pahalgam, India has taken several strict steps including suspending the Indus Water Treaty with Pakistan.

External Affairs Minister S Jaishankar on Tuesday spoke separately over the phone to the foreign ministers of seven temporary member countries of the United Nations Security Council (UNSC). These include Slovenia, Panama, Algeria and Guyana as well as Denmark, Pakistan and the Republic of Korea.