India-Pakistan conflict: Why Delhi could not stop IMF bailout to Islamabad

As one of 25 member groups on the IMF board, India's influence at the fund is limited, say experts.

Watch LiveBritish Broadcasting CorporationHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersWatch LiveWhy India could not stop IMF bailout to Pakistan3 days agoShareSaveNikhil InamdarBBC News LondonArchana ShuklaBBC News, MumbaiShareSaveBBCIndian paramilitary soldiers stand guard in Srinagar in Indian-administered Kashmir Last week the International Monetary Fund (IMF) approved a $1bn (£756m) bailout to Pakistan – a move that drew sharp disapproval from India as military hostilities between the nuclear-armed neighbours flared, before a US-led ceasefire was unexpectedly declared.

Despite India's protests, the IMF board approved the second instalment of a $7bn loan, saying Islamabad had demonstrated strong programme implementation leading to a continuing economic recovery in Pakistan.

It also said the fund would continue to support Pakistan's efforts in building economic resilience to "climate vulnerabilities and natural disasters", providing further access of around $1.4bn in funding in the future.

In a strongly worded statement India raised concerns over the decision, citing two reasons.

Delhi questioned the "efficacy" of such bailouts or the lack thereof, given Pakistan's "poor track record" in implementing reform measures. But more importantly it flagged the possibility of these funds being used for "state-sponsored cross-border terrorism" – a charge Islamabad has repeatedly denied - and said the IMF was exposing itself and its donors to "reputational risks" and making a "mockery of global values".