Singh sparks outrage with provocative claim that economic aid to Pakistan is tantamount to financing terror, fuelling fresh diplomatic tensions
News Desk
New Delhi: India’s Defence Minister Rajnath Singh has launched a sharp rebuke of Pakistan’s financial support from the International Monetary Fund, suggesting the recently approved $1 billion tranche could end up bankrolling terrorism. Speaking to Indian Air Force personnel at a base in western India, Singh expressed alarm that international financial institutions might inadvertently be fuelling militant activities in the region under the guise of economic assistance.
Singh did not hold back in his remarks, stating, “I firmly believe that any economic aid to Pakistan amounts to support for terrorism.” His comments appear to be a direct response to the IMF’s latest decision to clear a critical review of Pakistan’s ongoing financial programme, which unlocked a fresh $1 billion disbursement. The funds were confirmed last week by Pakistan’s State Bank, despite a wave of Indian opposition in diplomatic and strategic circles.
Pakistan’s Foreign Ministry reacted swiftly and forcefully, brushing off Singh’s accusation as a sign of what it described as India’s “frustration and failure.” Islamabad insisted that its cooperation with the IMF remains transparent and focused on stabilising the country’s fragile economy. Officials underscored that the approval came after a rigorous assessment process, one that India’s complaints had failed to derail.
In a further development that could deepen tensions, Pakistan has also received the green light for an additional $140 million from the IMF, earmarked under its Climate Resilience Fund – a move aimed at bolstering the country’s ability to cope with mounting environmental challenges. The dual injections of support are seen as crucial lifelines for a government still grappling with inflation, energy shortages, and recovery from last year’s devastating floods.
India, which shares representation at the IMF board with Bhutan, Sri Lanka, and Bangladesh, has long tried to leverage its regional influence within global institutions. Singh’s remarks reflect New Delhi’s unease with the current direction of financial diplomacy, particularly when it comes to Pakistan.
While the IMF has not issued a response to Singh’s statement, the broader context of Indo-Pakistani relations looms large over the exchange. For decades, the two nuclear-armed neighbours have accused each other of sponsoring unrest across their shared borders, with Kashmir often the flashpoint for both military and political confrontations.
