‘Pak Will Use IMF Funds On Terror’ Rajnath Singh Slams IMF Aid to Pakistan, Warns of Terror Funding Risk

Defence Minister Rajnath Singh on Friday urged global financial institutions, especially the IMF, to reconsider monetary assistance to Pakistan, warning that such funds could be diverted to support terrorism.

During his visit to Bhuj Air Force Station in Gujarat, Singh criticized the IMF for releasing USD 1.023 billion to Pakistan under its Extended Fund Facility (EFF). He alleged that a significant portion of this financial aid may be misused to fund terror infrastructure.

“I believe Pakistan will spend a large portion of the funds received from the International Monetary Fund on terror infrastructure in its country,” Singh said, urging the global body to reconsider its assistance.

He added, “India wants the IMF to rethink funding to Pakistan.”

Singh also praised the armed forces for the swift execution of Operation Sindoor, India’s military response to the April 22 Pahalgam terror attack.

“It would not be incorrect for me to say that the duration people take to have breakfast, you used that duration to deal with enemies,” he told Air Force personnel.

Referring to the missile strikes, Singh added, “The echo wasn’t just of missiles but also of your valour and the bravery of jawans of the Indian Armed Forces. The world heard it.”

The IMF disbursed the second tranche of its bailout programme for Pakistan on May 14. The financial package, meant to stabilize Pakistan’s economy, came as part of a short-term deal struck last year to avert economic collapse.

Pakistan has received at least 25 bailout packages from the IMF since joining the fund. Its gross reserves stood at USD 10.3 billion at the end of April and are projected to rise to USD 13.9 billion by June-end, according to IMF projections.

However, the IMF has demanded fiscal discipline. Pakistan is required to maintain a primary budget surplus of 1.6% of GDP, necessitating over Rs 2 trillion in new revenue measures.

Tensions between India and Pakistan flared following the Pahalgam terror attack that killed 26 civilians. India launched retaliatory strikes under Operation Sindoor targeting terror camps across the border. In response, Pakistan attempted drone strikes on Indian military facilities, escalating hostilities before both sides agreed to de-escalate on May 10.

India has since implemented a series of diplomatic actions, including suspension of the Indus Waters Treaty, cutting off trade and diplomatic ties, and visa bans on Pakistani nationals.