NEW DELHI/KARACHI: India has asked the International Monetary Fund to review loans disbursed to Pakistan, an Indian government source told Reuters on Friday, as tensions between the South Asian neighbors escalated following a deadly attack in Kashmir.
India and Pakistan have announced a raft of measures after an attack on Hindu tourists in Indian-administered Kashmir last week killed 26 men and there is a fear that the latest crisis between the nuclear-armed rivals could spiral into a military conflict.
New Delhi has identified the three attackers, including two it says are Pakistani nationals, as “terrorists.” Islamabad has denied any role and called for a neutral investigation.
India suspended a critical river water sharing treaty and the two countries have closed their airspace to each other’s airlines.
Pakistan secured a $7 billion bailout program from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
The program is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.
India raised concerns with the IMF on its loans to Pakistan, asking for a review, a government source told Reuters without elaborating.
The IMF and India’s finance ministry did not immediately respond to a request for comment.
The adviser to Pakistan’s finance minister said the IMF program is “well on track.”
“The latest review has been done well and we are completely on track,” adviser Khurram Schehzad told Reuters, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
“We did about 70 meetings ... interest has been very high for investing and supporting Pakistan as the economy turns around,” Schehzad said.
The soaring tensions between the two countries has drawn global attention and calls for cooling tempers.
Muslim-majority Kashmir is claimed in full by both Hindu-majority India and Islamic Pakistan, but each rules it in parts.
While New Delhi accuses Pakistan of backing an uprising in Indian Kashmir since 1989, Pakistan says it only offers diplomatic and moral support to a Kashmiri demand for self-determination.
India asks IMF to review loans to Pakistan, Indian government source says
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India asks IMF to review loans to Pakistan, Indian government source says
- The adviser to Pakistan’s finance minister says the IMF program is ‘well on track’
- The soaring tensions between the two states has drawn calls for cooling tempers
China backs Pakistan in fight against militancy after deadly Balochistan attacks
- China is a major ally and investor in Pakistan and has pledged over $65 billion in major infrastructure projects, including in Balochistan
- Chinese Foreign Ministry spokesperson Lin Jian says ‘we mourn for lives lost, and our hearts go out to injured and those who lost loved ones’
ISLAMABAD: China condemns the recent attacks that killed more than 200 people in Pakistan’s southwestern Balochistan province, a Chinese foreign ministry spokesperson said on Tuesday, reaffirming Beijing’s support for Pakistan in its fight against militancy.
The Baloch Liberation Army (BLA) group launched coordinated attacks in several cities across Balochistan on Saturday, killing 33 civilians and 17 security personnel. Officials said 117 militants were killed in skirmishes and follow-up operations.
Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces, foreigners and non-local Pakistanis and kidnap government officials.
China is a major ally and investor in Pakistan and has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC).
“China strongly condemns the [Balochistan] attacks... We mourn for the lives lost, and our hearts go out to the injured and those who lost their loved ones,” Chinese Foreign Ministry spokesperson Lin Jian said at a press briefing on Tuesday.
“China firmly opposes any form of terrorism and will as always firmly support Pakistan in combating terrorism, maintaining solidarity and social stability, and protecting the safety of the people.”
Chinese nationals working in Pakistan have often been targeted by militants, particularly in the southwestern Balochistan province, where China is developing a deep seaport that is touted as the crown jewel of CPEC.
Interior Minister Mohsin Naqvi said last week the attacks, claimed by the separatist Baloch Liberation Army (BLA), were planned from India. New Delhi rejected the allegation as “baseless,” saying Islamabad was attempting to deflect attention from its internal challenges.
Balochistan is home to vast reserves of minerals and hydrocarbons. Separatist militant groups such as the BLA blame Islamabad for exploiting Balochistan’s natural resources and denying locals a share in them. The military and civilian government reject these allegations and say they are investing in the province’s development.
