India's Next Battle Is in the IMF, and It's About Time

On May 9, the International Monetary Fund (IMF) approved a US$2.4 billion (US$1 billion under Extended Fund Facility and US$1.4 billion under Resilience and Sustainability Facility) financial loan for Pakistan.

- MANJARI SINGH

On May 9, the International Monetary Fund (IMF) approved a US$2.4 billion (US$1 billion under Extended Fund Facility and US$1.4 billion under Resilience and Sustainability Facility) financial loan for Pakistan. The decision came at a time of heightened tensions between India and Pakistan following India's launch of Operation Sindoor—a focused, measured, and non-escalatory air strike targeting nine terror hideouts across the Line of Control, launched in response to the Pahalgam terror attack.

There are speculations and growing whispers, however, not corroborated through official sources, that the IMF's approval of the loan may not have been a purely economic decision. That it may have involved backchannel understandings and a certain amount of arm-twisting mechanisms to de-escalate tensions with India. If such a ceasefire-linked condition was indeed part of the negotiations, then it suggests that India's concerns—though not publicly acknowledged—were quietly taken into account. However, if no such terms were considered, it only reinforces the urgent need for India to craft more effective and foolproof strategies to ensure its voice is not just heard but acted upon in global decision-making forums.