Congress Slams Modi Government Over IMF Abstention on Pakistan Loan

Accuses Centre of Yielding to US Pressure, Cites Missed Opportunity to Oppose IMF Tranche​

New Delhi, May 17 – The Congress launched a scathing attack on the Modi government on Saturday, accusing it of succumbing to US pressure by abstaining from voting at the IMF Executive Board meeting that approved a USD 1 billion loan to Pakistan.

The criticism came a day after Defence Minister Rajnath Singh urged the International Monetary Fund (IMF) to reconsider the assistance, warning that the funds could be misused to bolster terrorist infrastructure in Pakistan.

Congress general secretary in charge of communications, Jairam Ramesh, asserted that while the Defence Minister is now speaking out, the Congress had flagged the issue as early as April 29, ahead of the IMF meeting scheduled for May 9. Ramesh contended that India should have opposed the loan outright rather than merely abstaining.

“As it turns out, India only abstained on May 9. Later the Modi government’s drumbeaters, cheerleaders, and apologists argued that this was the only option available. This is a lie,” Ramesh claimed.

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He pointed out that there is a clear precedent for voting against such proposals at the IMF. “Russia voted No on a Ukraine loan proposal in September 2016, and India itself voted No on the expulsion of Zimbabwe on September 11, 2005. Where there is a will, there is a way,” he said.

Ramesh alleged that the government “simply buckled under US pressure” during the IMF deliberations.

Singh Warns IMF Against Terror Funding via Pakistan​

On Friday, Rajnath Singh, during an address to Air Force personnel in Bhuj, Gujarat, cautioned the IMF that any financial aid to Pakistan could potentially finance terrorism. He claimed that the Pakistani government had already announced plans to rebuild terror infrastructure tied to groups such as Lashkar-e-Taiba and Jaish-e-Mohammed.

“Certainly, a large part of IMF’s USD one billion assistance will be used to fund the terror infrastructure. Will this not be considered indirect funding by IMF, an international organisation?” Singh asked.

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He further emphasized that any financial aid provided to Pakistan should be viewed as equivalent to terror funding.

“The funds India gives to IMF should not be used, directly or indirectly, to create terror infrastructure in Pakistan or any other country,” he asserted.

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IMF Clears Tranche Despite Indian Concerns​

In its May 9 meeting in Washington, the IMF Executive Board approved a USD 1 billion tranche as part of its larger USD 7 billion assistance programme to Pakistan. Despite India's objections, the loan was cleared, prompting strong reactions from the government and the opposition.

The Congress maintains that a stronger IMF stance could have clearly communicated India's position on terrorism and international funding mechanisms.