India will likely vote against the proposed $1.3 billion IMF loan for Pakistan on the grounds of the country’s ‘support to terrorism’. The decision comes in the wake of the April 22 terror strike in Pahalgam that claimed 26 civilian lives. The International Monetary Fund board will take up the loan on May 9. India is set to raise cross-border connections as well as Islamabad’s abuse of IMF resources.

This time, New Delhi will not abstain but make a strong stance at the board meeting. In the meantime, External Affairs Minister S Jaishankar has contacted important UN Security Council members to generate diplomatic pressure. This increasing assertiveness indicates India’s determination to fight terror financing on the international front.

India’s Changing IMF Stance: From Silence to Action

In the last IMF review, India had abstained from voting on Pakistan’s $7 billion bailout. That fund aimed to stabilise Pakistan’s crumbling economy. However, the Pahalgam attack has shifted India’s position sharply.

Officials believe Islamabad continues to support cross-border terrorism while requesting global aid. India now seeks to hold Pakistan accountable by challenging its eligibility for international funding.

May 9 IMF Board Review

The IMF board will on May 9 examine Pakistan’s climate resilience plan. The offer comes with a $1.3 billion loan, conditional upon pledges under the previous $7 billion Extended Fund Facility. Subject to approval, the review can open vital money ahead of Pakistan’s June budget.

But opposition from India might lead to transparency and use-of-funds concerns from donor countries.

S. Jaishankar Rallies Global Support

In the aftermath of Pahalgam killings, S Jaishankar, India’s External Affairs Minister, contacted the counterparts from Algeria, Greece, Guyana, Panama, Slovenia, Sierra Leone, and Somalia. They are all the non-permanent members of the UN Security Council.

India alarmed at the cross-border nature of the terror plan. New Delhi is now demanding more international criticism of Pakistan’s actions.

Will India’s Influence Shatter IMF Policy?

India’s increasing clout in international forums lends strength to its position. If India manages to forge a coalition within the IMF board, it can stall or derail the release. This is part of a larger game plan: employ multilateral forums to target state sponsors of terror.

As India plays a more assertive role internationally, its policy could compel institutions such as the IMF to make funding conditional on anti-terror credentials.

Pahalgam Attack May Redefine Global Funding Politics

India’s reaction to the Pahalgam attack may be a turning point in the way terror links impact global finance. By resisting the IMF loan, India sends a clear message: countries can’t access international assistance while sheltering terror.

As the May 9 board meeting approaches, all eyes are still on whether India’s efforts will pay off — and whether the world is ready to act on terror financing at its source.