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Why India could not stop IMF bailout to Pakistan

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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”.

The IMF did not respond to the BBC’s request for a comment on the Indian stance.

Even Pakistani experts argue that there’s some merit to Delhi’s first argument. Pakistan has been prone to persistently seeking the IMF’s help – getting bailed out 24 times since 1958 – without undertaking meaningful reforms to improve public governance.

“Going to the IMF is like going to the ICU [intensive care unit]. If a patient goes 24 or 25 times to the ICU then there are structural challenges and concerns that need to be dealt with,” Hussain Haqqani, former Pakistani ambassador to the US, told the BBC.

A sign for the IMF is seen during the 2025 IMF and World Bank Spring Meetings at IMF Headquarters in Washington, DC, USA 25 April 2025.
As one of the 25 members of the IMF board, India’s influence at the fund is limited

But addressing Delhi’s other concerns – that the IMF was “rewarding continued sponsorship of cross-border terrorism” thereby sending a “dangerous message to the global community” – is far more complex, and perhaps explains why India wasn’t able to exert pressure to stall the bailout.

India’s decision to try to prevent the next tranche of the bailout to Islamabad was more about optics then, rather than a desire for any tangible outcome, say experts. As per the country’s own observations, the fund had limited ability to do something about the loan, and was “circumscribed by procedural and technical formalities”.

As one of the 25 members of the IMF board, India’s influence at the fund is limited. It represents a four-country group including Sri Lanka, Bangladesh and Bhutan. Pakistan is part of the Central Asia group, represented by Iran.

Unlike the United Nations’ one-country-one-vote system, the voting rights of IMF board members are based on a country’s economic size and its contributions – a system which has increasingly faced criticism for favouring richer Western countries over developing economies.

For example, the US has the biggest voting share – at 16.49% – while India holds just 2.6%. Besides, IMF rules do not allow for a vote against a proposal – board members can either vote in favour or abstain – and the decisions are made by consensus on the board.

“This shows how vested interests of powerful countries can influence decisions,” an economist who didn’t want to speak on the record told the BBC.

Addressing this imbalance was a key proposal in the reforms mooted for the IMF and other multilateral lenders during India’s G20 presidency in 2023.

In their report, former Indian bureaucrat NK Singh and former US treasury secretary Lawrence Summers recommended breaking the link between IMF voting rights and financial contributions to ensure fairer representation for both the “Global North” and the “Global South”. But there has been no progress so far on implementing these recommendations.

Furthermore, recent changes in the IMF’s own rules about funding countries in conflict add more complexity to the issue. A $15.6bn loan by the fund to Ukraine in 2023 was the first of its kind by the IMF to a country at war.

“It bent its own rules to give an enormous lending package to Ukraine – which means it cannot use that excuse to shut down an already-arranged loan to Pakistan,” Mihir Sharma of the Observer Research Foundation (ORF) think tank in Delhi told the BBC.

Indian People walk past the newly unveiled G20 logo in New Delhi, India on 1 December 2022.
Reforms to the IMF’s voting structure were discussed during India’s G20 presidency in 2023

If India really wants to address its grievances, the right forum to present them would be the United Nations FATF (Financial Action Task Force), says Mr Haqqani.

The FATF looks at issues of combating terror finance and decides whether countries need to be placed on grey or black lists that prevent them from accessing funds from bodies like the IMF or the World Bank.

“Grandstanding at the IMF cannot and did not work,” said Mr Haqqani. “If a country is on that [FATF] list it will then face challenges in getting a loan from the IMF – as has happened with Pakistan earlier.”

As things stand though, Pakistan was officially removed from the Financial Action Task Force (FATF) grey list in 2022.

Separately, experts also caution that India’s calls to overhaul the IMF’s funding processes and veto powers could be a double-edged sword.

Such reforms “would inevitably give Beijing [rather than Delhi] more power”, said Mr Sharma.

Mr Haqqani agrees. India should be wary of using “bilateral disputes at multilateral fora”, he said, adding that India has historically been at the receiving end of being vetoed out by China in such places.

He points to instances of Beijing blocking ADB (Asian Development Bank) loans sought by India for the north-eastern state of Arunachal Pradesh, citing border disputes between the two countries in the region.

Pakistan News

CELEBRATES PAKISTAN’S 79TH INDEPENDENCE DAY AND 150TH BIRTH ANNIVERSARY OF QUAID-E-AZAM MOHAMMAD ALI JINNAH IN FRANCE

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Paris ( Imran Y. CHOUDHRY):- On the occasion of the 79th Independence Day of Pakistan, Ambassador Mumtaz Zahra Baloch hoisted national flag to the tune of the national anthem at the Embassy of Pakistan, Paris and welcomed distinguished members of the Pakistani community including large number of children.


Messages of the President, the Prime Minister and Foreign Minister of Pakistan were read out on the occasion.
Congratulating all on the Independence Day, the Ambassador said that 14th August was truly auspicious as it brought together the entire nation – in celebration, in paying homage to the Quaid-e-Azam and other leaders of the freedom movement, in remembrance of the supreme sacrifices of our forefathers and drawing inspiration from our glorious past and the tremendous achievements over the decades.


The Government of Pakistan is observing the current year – 2026 – as the “Year of Quaid-e-Azam Muhammad Ali Jinnah” to mark his 150th birth anniversary, she added. The great intellectual vision of Quaid requires the nation to uphold his principles and play its due role in the development and progress of Pakistan. The Ambassador highlighted that Quaid-e-Azam had given the nation three golden principles, faith, unity and discipline and adherence to these principles would lead the nation towards a bright future for the generations to come.
Ambassador Baloch said that as we celebrate our freedom we should remember our Kashmiri and Palestinian brothers and sisters, who have been struggling for over seven decades for their freedom and right to self-determination. She reaffirmed Pakistan’s political and diplomatic support to the people of the Indian Illegally Occupied Jammu and Kashmir (IIOJK) and Palestine for their legitimate rights.


Ambassador also appreciated the contributions of Pakistani diaspora in France in promoting Pakistan-France relations. She reiterated Embassy’s fully commitment to continue to facilitate Pakistanis based in France.
Later, the Ambassador inaugurated the ‘historic photo exhibition’ based on the life and works of Quaid-e-Azam Muhammad Ali Jinnah at the Embassy. The exhibition showcased a remarkable collection of
archival records and photographs chronicling the visionary leadership and enduring
legacy of the founder of Pakistan. The guests especially the children took a keen interest in the exhibition and raised slogans of Pakistan Zindabad.

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Pakistan PUBG MOBILE team ‘4Thrives’ visited the Embassy of Pakistan in Paris, France.

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Paris ( Imran Y. CHOUDHRY):- Ambassador Mumtaz Zahra Baloch today received the top professional Pakistan PUBG MOBILE team ‘4Thrives’, which is competing in the high-stakes competition, PUBG MOBILE World Cup 2026 Grand Finals at the Esports World Cup (EWC) being held in Paris.

The team members of ‘4Thrives’ briefed the Ambassador on the game and the hard work they all had put in to finish at the top of the qualifying round and reaching the Grand Finals. They were enthusiastic about their performance which has cemented their position among the world’s best PUBG MOBILE teams.

The Ambassador appreciated the team members for their enthusiastic participation and accomplishments and wished them success for the Grand Finals. She said the Pakistani nation has proudly witnessed the recent achievements of the 4Thrives team and expressed confidence that it would win the prestigious trophy in Paris as well.

This is the first time that EWC is being held in Paris – a true global phenomenon represented by more than 2,000 players from 200 clubs and 100 different countries.

Let’s celebrate and cheer Pakistan PUBG MOBILE team ‘4Thrives’ for the Grand Finals this week!

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The Mecca Defence Pact: The Threats Behind the Alliance

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : The Mecca Joint Defence Agreement signed by Saudi Arabia, Türkiye and Pakistan is being described as a Muslim version of NATO. Turkish Foreign Minister Hakan Fidan himself said its collective-defence clause is technically similar to NATO’s Article 5: an armed attack on one member will be treated as an attack on all. Yet most commentary has concentrated on the pact’s wording, its possible expansion and whether it is aimed at Iran or Israel. The more important question has received less attention: what threat does each signatory actually perceive?
Without answering that question, analysis of the agreement remains incomplete. Alliances do not acquire meaning merely from ceremonial signatures. Their real character is determined by the dangers their members fear, the capabilities they contribute and the circumstances in which they are prepared to act.
For Saudi Arabia, the immediate security environment is deeply paradoxical. The kingdom has long relied upon the United States, but the presence of American forces and facilities across the Gulf can also attract retaliation whenever Washington uses regional territory or infrastructure in military operations against Iran.
Tehran has repeatedly maintained that its quarrel is not with Gulf societies as such, but with military threats launched from or supported through their territories. Whether one accepts Iran’s justification or not, the underlying dilemma is real: foreign protection can simultaneously become a source of exposure.
This raises a difficult question. If foreign bases had not facilitated attacks against Iran, would Tehran have attacked Gulf countries on the same scale? The answer cannot be proven, but the question exposes Saudi Arabia’s strategic vulnerability. Riyadh wants protection without remaining permanently hostage to decisions made by an external guarantor.
Threats from the Houthis in Yemen and Iran-aligned armed groups in Iraq remain serious, particularly for oil facilities, desalination plants, shipping and civilian infrastructure. Nevertheless, Saudi Arabia has spent heavily on modern aircraft, missiles, surveillance systems and air defence. These dangers alone do not fully explain the need for an Article 5-style pact with Türkiye and nuclear-armed Pakistan.
The wider concern is Israel’s expanding military reach and the fear that no regional state can assume it will remain permanently outside Israeli calculations. The “Greater Israel” project is not merely a slogan invented by Israel’s critics. It is a documented ideological and political current rooted in expansionist interpretations of biblical territory, including the most extreme vision of land stretching from the Nile to the Euphrates, and in revisionist Zionist ideas of sovereignty on both sides of the Jordan River.
Israel’s wars and military operations across Gaza, Lebanon, Syria and elsewhere have intensified regional fears that its use of force and territorial ambitions are becoming geographically unconstrained. Because the most expansive interpretation of Greater Israel encompasses territory belonging to several Arab states, including Saudi Arabia, Riyadh has legitimate reasons to treat this ideology and Israel’s growing regional reach as a long-term strategic threat.
The Mecca agreement therefore creates strategic depth, reduces Saudi Arabia’s exclusive dependence on Washington and strengthens the kingdom’s leadership position in the Muslim world.
Türkiye enters the pact with a different threat map. It possesses NATO’s second-largest army, an increasingly sophisticated defence industry, formidable drone capabilities, warship and helicopter production, and substantial operational experience in Syria, Iraq and the eastern Mediterranean.
Kurdish militancy and instability along Türkiye’s southern borders remain persistent threats, but Ankara is largely capable of managing these challenges without Pakistani or Saudi military intervention.
The more consequential concern is Israel. Turkish and Israeli rhetoric has become increasingly hostile, while their strategic interests collide in Syria, Gaza and the broader eastern Mediterranean. Türkiye’s conventional size gives it considerable strength, but Israel is widely understood to possess nuclear weapons, while Türkiye does not. This creates a dangerous asymmetry at the highest level of escalation.
Pakistan’s participation therefore adds deterrent weight, but it is essential not to overstate what has formally been agreed. The published language does not establish an explicit Pakistani nuclear umbrella over Türkiye or Saudi Arabia. Nor does it automatically commit Islamabad to nuclear retaliation.
Its value at this stage lies in strategic ambiguity. Any adversary contemplating extreme escalation must now consider the possibility of a broader response involving a nuclear-armed partner. That uncertainty itself can reinforce deterrence, provided consultation mechanisms, command arrangements and red lines are eventually clarified.
Pakistan’s principal state-based threat remains India. Its other challenges—including attacks linked to the Pakistani Taliban, militancy operating from Afghan territory and insurgency in Balochistan—are grave but fall mainly within the domain of counterterrorism and internal security.
Islamabad has also alleged external support for certain militant networks, including from India and Israel other hostile actors, therefore the possibility of hybrid warfare designed to weaken Pakistan cannot be ignored.
The real test for the pact would come during a future India-Pakistan war. Saudi Arabia enjoys extensive economic and political relations with India, while Türkiye also has interests that extend beyond its partnership with Islamabad. Would Riyadh provide intelligence, logistics, financing, air defence or diplomatic support? Would it risk its relationship with New Delhi?
The treaty’s collective-defence formula is powerful, but it does not necessarily mean that every member must respond identically or automatically declare war. Even NATO’s Article 5 requires each ally to take such action as it considers necessary. The Mecca pact’s credibility will similarly depend on agreed procedures, operational planning, military integration and, above all, political will.
Nor should the alliance be framed as an anti-Iranian “Sunni bloc.” That description is analytically shallow and politically dangerous. It imports a sectarian narrative into an agreement whose signatories explicitly maintain that it is not directed against Iran or any other particular country.
Western and regional media extensively are using the Sunni label as convenient shorthand, but repeating it can deepen the very divisions that have repeatedly weakened the Muslim world. It risks presenting Sunni and Shia states as natural enemies, even though they share geography, economic interests, religious bonds and responsibility for regional stability.
Iran has demonstrated formidable missile, drone and asymmetric capabilities and has proven ability to impose severe costs on the combined military might of both the United States and Israel and their alliance in the Middle East and elsewhere in the entire world.
A confrontation between Iran and the combined forces of Pakistan, Türkiye and Saudi Arabia would devastate the region, rupture trade and energy routes, inflame sectarian tensions and serve none of the four countries.
The rational objective of the Mecca alliance should therefore be deterrence, collective security and strategic autonomy—not the creation of another front in the Iran war.
The wiser long-term course is to keep the pact open and eventually build a structured security dialogue with Iran. Immediate Iranian membership may be politically unrealistic while war and mistrust persist, but inclusion should remain a strategic objective.
Egypt and other regional countries could also participate in a broader security architecture based on non-aggression, collective consultation, protected shipping lanes, economic connectivity and respect for sovereignty.
The three signatories must also wage an intelligent information campaign. Through official statements, diplomatic outreach, legacy media, social platforms and other forms of communication, they should consistently reject the description of the agreement as a “Sunni NATO.”
They should explain that the pact is intended to protect its members from aggression regardless of the aggressor’s religious, sectarian or national identity. It must not be allowed to become an instrument for turning Muslim countries against one another.
The Mecca agreement will become historic only if it does more than redistribute fear. Properly developed, it can reduce dependence on outside powers, deter Israeli or other aggression, give Pakistan additional diplomatic weight and create the nucleus of an inclusive regional security system.
Mishandled as a sectarian coalition, however, it could produce precisely the confrontation it claims to prevent. Its success will therefore be measured not by how many enemies it names, but by how many wars it prevents.

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