Islamabad: Crucial negotiations between Pakistan and the International Monetary Fund (IMF) are expected to take place today, focusing on the disbursement of the next tranche of a $7 billion bailout package. These discussions are set against the backdrop of mounting tensions between Pakistan and India, raising concerns that India may attempt to influence the IMF’s decision.
Reports suggest that New Delhi could pressure the IMF to withhold further financial assistance to Islamabad, citing security concerns. This follows accusations by India that Pakistan carried out drone and missile attacks on three Indian military installations — a claim strongly denied by Islamabad.
In light of the escalating situation, several regions experienced overnight power blackouts, further fueling uncertainty.
Indian Foreign Secretary Vikram Misri stated on Thursday that New Delhi intends to present its position to the IMF Board, urging it to consider the long-term implications of past bailout programs provided to Pakistan over the last three decades.
The IMF bailout remains vital for Pakistan’s fragile and slowly recovering economy, with any delay or disruption potentially jeopardizing fiscal stability.
Meanwhile, in a significant diplomatic development, World Bank President Ajay Banga met with Indian Prime Minister Narendra Modi on Thursday. The meeting came amid growing speculation over India’s decision to suspend the Indus Waters Treaty.
However, Banga clarified in an interview with CNBC TV18 that the World Bank does not have the authority to intervene in the suspension of the Indus Waters Treaty. He emphasized that the treaty allows for either full termination or renegotiation but includes no provision for suspension. Banga reaffirmed that the World Bank’s role in the agreement is limited to facilitation only.
