New Delhi [India]: India will articulate its position at the International Monetary Fund (IMF) board meeting on Friday as the global lender considers a $1 billion bailout tranche for Pakistan, Foreign Secretary Vikram Misri confirmed at a press briefing in New Delhi.
“You must be aware that the IMF meeting is underway. We will put forward our perspective and our views with the IMF members. It is up to the Board as to what decision they take,” Misri told reporters.
Although Misri did not elaborate on the specifics of India’s presentation, diplomatic observers expect India to oppose the bailout, citing Pakistan’s continued support for terrorism.
Backdrop of Diplomatic Escalation:
Tensions between the two nations have surged following the April 22 terrorist attack in Pahalgam, Jammu & Kashmir, which resulted in 26 civilian deaths, most of them tourists.
In response, India:
- Downgraded diplomatic relations with Pakistan.
- Suspended the Indus Waters Treaty of 1960, a critical agreement that regulates water sharing from the Indus River system.
- Plans to approach the Financial Action Task Force (FATF) to urge Pakistan’s re-inclusion in the grey list, according to government sources.
On the Indus Waters Treaty Suspension:
When questioned on the treaty’s status, Foreign Secretary Misri confirmed:
“Indus Waters Treaty is in abeyance, and I have nothing further to add to the decision that was announced by Cabinet Committee on Security.”
Signed in 1960 with World Bank facilitation, the Indus Waters Treaty allocated the western rivers (Indus, Jhelum, Chenab) to Pakistan and the eastern rivers (Ravi, Beas, Sutlej) to India. Under the terms, India receives 20% of the total water share, with Pakistan receiving 80%.
India’s suspension of the treaty could drastically impact Pakistan’s long-term water security, adding economic and environmental pressure to its already fragile internal situation.
World Bank’s Clarification:
Following a meeting with Prime Minister Narendra Modi, World Bank President Ajay Banga clarified that the institution’s role in the treaty is limited.
“We have no role to play beyond a facilitator. There’s a lot of speculation in the media about how the World Bank will step in and fix the problem but it’s all bunk,” Banga was quoted as saying by the Press Information Bureau.
Outlook:
With the IMF’s decision pending and India’s growing strategic and economic clout, New Delhi’s stance could influence other board members, particularly as international scrutiny intensifies on Pakistan’s track record in curbing terror financing and cross-border militancy.