As tensions soar between India and Pakistan following a deadly attack in Indian-administered Kashmir, New Delhi has formally requested the International Monetary Fund (IMF) to review its financial support to Islamabad, according to an Indian government source cited by Reuters.
The diplomatic rift escalated after a brutal assault last week left 26 Hindu tourists dead in Pahalgam. India claims that two of the attackers were Pakistani nationals and has labeled them “terrorists.” Pakistan, denying involvement, has called for an impartial, international investigation.
In response to the attack, both nuclear-armed nations have taken tit-for-tat actions: suspending airspace access for each other’s airlines, closing border crossings, and India unilaterally halting the Indus Waters Treaty—a key water-sharing agreement.
Now, India has taken its concerns to the global financial stage, asking the IMF to reevaluate its ongoing $7 billion bailout and recent $1.3 billion climate resilience loan to Pakistan. India has not publicly detailed the basis of its request.
Despite the political pressure, Pakistan remains confident in its standing with the IMF. Khurram Schehzad, an advisor to Pakistan’s finance minister, told Reuters that the country’s loan program is “well on track,” and highlighted successful spring meetings with global financial institutions in Washington.
The renewed hostility has drawn international concern. U.S. Vice President JD Vance urged cooperation and restraint, stating Washington hopes Pakistan will assist India in identifying and apprehending those responsible for the attack.
The broader context remains rooted in the decades-old Kashmir dispute, with both countries claiming the region in full while governing it in parts. India accuses Pakistan of supporting militancy in Kashmir, while Islamabad maintains it only offers diplomatic backing for Kashmiri self-determination.
