India asks IMF to review Pakistan loans amid rising tensions

India has requested the International Monetary Fund (IMF) to reassess its loan disbursements to Pakistan in light of escalating tensions between the two nuclear-armed neighbors, according to a senior Indian government official.

The request follows a recent deadly incident in Indian Illegally Occupied Jammu and Kashmir (IIOJK) that left 26 Hindu tourists dead. India blames Pakistan-based assailants for the attack, identifying three attackers—two of whom it claims are Pakistani nationals. Islamabad has denied involvement and called for an impartial investigation.

The situation has deteriorated swiftly, with India suspending a key river water sharing agreement and both countries shutting down their airspace to each other’s flights.

In response to India’s call for a review, Pakistan’s Finance Ministry advisor Khurram Schehzad confirmed the IMF programme remains “well on track.” He stated that the most recent programme review went smoothly and described recent meetings with global financial institutions as “highly productive.”

Pakistan, which secured a $7 billion IMF bailout last year and an additional $1.3 billion climate resilience loan in March, considers the programme crucial to stabilizing its $350 billion economy. The IMF Executive Board is expected to meet on May 9 to discuss the progress of Pakistan’s programme.

Meanwhile, U.S. Vice President JD Vance expressed hope that tensions do not escalate into a broader regional conflict and encouraged cooperation between India and Pakistan to address security concerns.