New Delhi: India on Friday abstained from voting at a board meeting of the International Monetary Fund (IMF) to review loans to Pakistan, raising concerns over the efficacy of such bailouts for the neighbouring country and flagging the "possibility of misuse of funds for state sponsored cross-border terrorism".
ET reported last month that India would oppose the loan.
The IMF board met in Washington DC to review an extended fund facility lending programme of $1 billion to Pakistan.
Also Read: On IMF’s lifeline, Pakistan struggles as India wields its economic power to block handouts
No Provision to Vote 'Against' Proposals at IMF
The IMF also considered a $1.3 billion credit line to Pakistan for climate resilience efforts.
The meeting comes at a time when both countries are engaged in conflict following the terrorist attack in Pahalgam last month that killed 26. New Delhi has blamed Islamabad for persistently fomenting terrorism in Kashmir.
There is no provision to vote against a proposal at the IMF. A nation can either vote in favour or abstain.
Also Read: Pakistan gets IMF loan of $1 billion as India abstains from voting
In a statement on the IMF meeting, the Indian government said: "India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values."
It said there is an urgent need to ensure moral values are given appropriate consideration in the procedures followed by global financial institutions, especially the IMF.
Both the programmes reviewed on Friday were agreed on at the IMF staff level before the latest hostilities broke out. While there is no official word from India on the outcome of the meeting, the Pakistani government said that the IMF had approved the support, according to Reuters.
Pakistan has been a long-time borrower from the IMF but its record of implementing and adhering to the lender's programme conditions remains very poor, New Delhi added.
The IMF, the government said, noted India's statement.
India highlighted that Pakistan military's deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms.
In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 of them. In the last five years, there have been four IMF programmes to support it.
If the previous programmes had succeeded in putting in place a sound macroeconomic policy environment, India stressed, Pakistan would not have approached the Fund for yet another bailout programme.
"India pointed out that such a track record calls into question either the effectiveness of the IMF programme designs in case of Pakistan or their monitoring or their implementation by Pakistan," the Indian government said in the statement.
#Operation Sindoor
India-Pakistan Clash Live Updates| Missiles, shelling, and attacks — here’s all that’s happening
Pakistani Air Force jet shot down in Pathankot by Indian Air Defence: Sources
India on high alert: What’s shut, who’s on leave, and state-wise emergency measures
The IMF board met in Washington DC to review an extended fund facility lending programme of $1 billion to Pakistan.
Also Read: On IMF’s lifeline, Pakistan struggles as India wields its economic power to block handouts
No Provision to Vote 'Against' Proposals at IMF
The IMF also considered a $1.3 billion credit line to Pakistan for climate resilience efforts.
The meeting comes at a time when both countries are engaged in conflict following the terrorist attack in Pahalgam last month that killed 26. New Delhi has blamed Islamabad for persistently fomenting terrorism in Kashmir.
There is no provision to vote against a proposal at the IMF. A nation can either vote in favour or abstain.
Also Read: Pakistan gets IMF loan of $1 billion as India abstains from voting
In a statement on the IMF meeting, the Indian government said: "India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values."
It said there is an urgent need to ensure moral values are given appropriate consideration in the procedures followed by global financial institutions, especially the IMF.
Both the programmes reviewed on Friday were agreed on at the IMF staff level before the latest hostilities broke out. While there is no official word from India on the outcome of the meeting, the Pakistani government said that the IMF had approved the support, according to Reuters.
Pakistan has been a long-time borrower from the IMF but its record of implementing and adhering to the lender's programme conditions remains very poor, New Delhi added.
The IMF, the government said, noted India's statement.
India highlighted that Pakistan military's deeply entrenched interference in economic affairs poses significant risks of policy slippages and reversal of reforms.
In the 35 years since 1989, Pakistan has had disbursements from the IMF in 28 of them. In the last five years, there have been four IMF programmes to support it.
If the previous programmes had succeeded in putting in place a sound macroeconomic policy environment, India stressed, Pakistan would not have approached the Fund for yet another bailout programme.
"India pointed out that such a track record calls into question either the effectiveness of the IMF programme designs in case of Pakistan or their monitoring or their implementation by Pakistan," the Indian government said in the statement.
