Tensions have escalated between India and Pakistan over cross-border links to the Pahalgam terror attack, in which 26 civilians were killed.
In the aftermath of the Pahalgam terror attack, that left 26 civilians dead, India is reportedly planning a twin financial strike on Pakistan to throttle support for its cross-border terrorism and undercut Islamabad on the world stage. India is likely to pursue getting Pakistan into the Financial Action Task Force (FATF) Grey List. Secondly, India is also expected to push the International Monetary Fund (IMF) and World Bank to review and reassess their financial aid to Pakistan.
India To Push For Pakistan’s Inclusion In FATF Grey List
India is likely to seek the support of FATF member countries to include Pakistan in Grey List in the wake of Pahalgam attack, sources said. Pakistan was put in the FATF Grey List of the global money laundering and terror financing watchdog in June 2018 and was removed in October 2022.
Being on the ‘Grey List’ adversely impacts capital flow and Foreign Direct Investment (FDI).
#BreakingNews: India seeks pushing Pakistan to FATF grey list
India gathers support from FATF members, to cite Pakistan’s terror rap sheet @priyanktripathi shares more details with @Swatij14 pic.twitter.com/7JaQdKfjCU
— TIMES NOW (@TimesNow) May 2, 2025
India To Ask IMF To Pull Plug On Aid
India is likely to approach the IMF and World Bank, urging it to re-examine the funds and loans provided to cash-strapped Pakistan. The timing might be crucial as IMF Board is set to to evaluate a fresh USD 1.3 billion arrangement for Pakistan under its climate resilience loan programme. It will also assess an ongoing USD 7 billion bailout package for the vash-trapped nation.
Further, a government source told PTI that New Delhi will be asking global multilateral agencies to review their financial support to Islamabad. “We will be asking all multilateral agencies to review the loans and support to Pakistan,” a government source told PTI.
According to govt sources to Times Now, India has asked the IMF to review the loans disbursed to Pakistan.
– ‘Terror sponsors’ to be left high & dry?@Swatij14 with more details. pic.twitter.com/NM8k0RLsb0
— TIMES NOW (@TimesNow) May 2, 2025