India has expressed cautious appreciation for the International Monetary Fund (IMF) after the global body imposed 11 additional conditions on Pakistan under its bailout package. While Indian officials clarified that New Delhi does not oppose financial aid for developmental purposes, they raised strong concerns about the timing of the latest fund release. According to government sources, India suspects that the bailout may have indirectly facilitated Pakistan’s growing defence spending, which it claims is often used to support activities against India.
Citing public and IMF data, Indian sources highlighted that Pakistan allocates around 18% of its general budget to defence — significantly higher than the 10-14% average among other conflict-ridden nations. They also pointed out a sharp rise in Pakistan’s arms imports during years it received IMF assistance, noting a 20% average increase between 1980 and 2023 in such periods. Meanwhile, Indian delegations are engaging with other countries to raise awareness about Pakistan’s alleged support for terrorism and to reinforce India’s zero-tolerance approach.
According to reports, the 11 new IMF conditions aim to enforce stricter fiscal discipline and reforms in Pakistan. These include passing a Rs 17.6 trillion budget for 2025-26 aligned with IMF guidelines, introducing Agriculture Income Tax legislation with systems for taxpayer registration and compliance, and publishing a governance action plan based on IMF assessments. Additional reforms include drafting a post-2027 financial strategy. The IMF has so far disbursed USD 2 billion under a USD 7 billion programme, including a recent USD 1.3 billion tranche from the Resilience and Sustainability Facility.
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