Islamabad: Amid rising regional tensions and reports that India has requested the International Monetary Fund (IMF) to reassess its lending to Pakistan, the Pakistani government has reiterated that its IMF program remains on course.
Adviser to the Finance Minister, Khurram Shehzad, confirmed on Friday that the ongoing bailout program was “completely on track” and undergoing a smooth review process.
This statement comes in response to media reports suggesting that India has raised objections with the IMF regarding Pakistan’s loans, requesting a formal review.
The diplomatic friction between the two nuclear-armed neighbors intensified after a deadly attack on April 22 in Pahalgam, occupied Kashmir, which claimed the lives of 26 individuals, mostly tourists.
India, without presenting concrete evidence, hinted at cross-border involvement. Pakistan firmly rejected the accusations and called for a neutral investigation.
In retaliation, India suspended the Indus Water Treaty and both countries closed their airspace to each other’s airlines, further escalating tensions.
Despite these developments, Pakistan remains focused on its economic recovery.
The country had previously secured a $7 billion IMF bailout in 2023 and, more recently, a $1.3 billion climate resilience loan in March 2025.
The IMF Executive Board is scheduled to meet on May 9 to deliberate on a new staff-level agreement for Pakistan as well as the first review of its current program.
Shehzad told media that the recent discussions with the IMF and other international financial institutions, including the World Bank and the Asian Development Bank, were highly productive.
He emphasized that during the spring meetings in Washington, D.C., Pakistani officials held about 70 meetings over six days, with strong international interest in investing in and supporting Pakistan’s economic turnaround.
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Credit rating agencies have reportedly responded positively, upgrading Pakistan’s outlook.
Meanwhile, another media report cited an unnamed Indian government source confirming that India had communicated its concerns to the IMF about its financial assistance to Pakistan, though no specifics were disclosed. Neither the IMF nor India’s finance ministry has officially commented on the matter.
The IMF programme is considered essential for stabilizing Pakistan’s $350 billion economy, especially after a period of acute financial stress that brought the country close to default.
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Islamabad maintains that the bailout has helped restore macroeconomic stability and boost investor confidence.
On the international front, the heightened India-Pakistan tension has caught global attention.
U.S. Vice President JD Vance commented on the situation, stating that the United States hopes Pakistan will cooperate with India in bringing the perpetrators of the Pahalgam attack to justice.
He added that if Pakistan is found to have any link to the incident, it must assist in ensuring the responsible parties are held accountable.
