GOVERNANCE AT IMF

India's position in the Russia-Ukraine war had a definite reflection in the approval of the bailout for Pakistan

- Avilash Roul

Last month, two IMFs were in the news. They are still in the news. One is the Hollywood blockbuster Mission: Impossible's Impossible Mission Force (IMF), and the other is the International Monetary Fund (IMF) or the Fund. During 'Operation Sindoor', India's tactical military strike against terrorist hideouts in Pakistan involved in the Pahalgam killings, the IMF approved a loan to Pakistan. That specific act by the IMF has been vehemently criticised by both the public and the government in India, with some even referring to it as the 'International Military Fund'. Is it arguably logical and reasonable to criticise the Leviathan of the world political economy, the IMF, one of the Western-led dominant multilateral institutions?

It's not uncommon to hear condemnation of the Bretton Woods Institutions, particularly from left-leaning civil societies and academics. Yet, it is quite unusual for senior members and ministers of a founding member country, i.e. India, to engage in a spree of severe scrutiny of the IMF. On 9 May, the IMF Executive Board approved a lending amount of $1 billion to Pakistan under an earlier agreed (September 2024) long-term programme. Additionally, another $1.4 billion was approved for Pakistan's efforts in economic resilience to climate vulnerabilities and natural disasters. Evidently, that was enough to ignite the Indian backlash during the height of a limited war with its arch-rival.