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
Pakistan arrests suspect arriving from Cambodia amid crackdown on human smuggling
- Suspect worked at an “online fraud company” in Cambodia, later started smuggling people from Pakistan, says FIA
- Pakistan has intensified crackdown against human smugglers after hundreds of migrants drowned near Pylos in 2023
ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) on Sunday said it had arrested a key suspect involved in smuggling humans who had arrived from Cambodia, alleging he was also part of an international fraud network.
The suspect, identified as Zainullah, was arrested by FIA officials when he arrived in the southern port city of Karachi from Cambodia.
Zainullah had traveled from Pakistan to Cambodia in September 2024, a press release issued by the agency said.
“He worked at an online fraud company in Cambodia and later became involved as an agent in recruiting individuals from Pakistan,” the FIA said.
The FIA said it recovered images of multiple individuals’ passports, payment receipts and bank transaction records after extracting data from Zainullah’s phone.
It said the suspect received money through personal bank accounts and a cryptocurrency account.
“The suspect has been handed over to the FIA Anti-Human Trafficking Circle, Karachi, for further legal proceedings,” the FIA said.
“Further investigation is underway.”
Pakistan intensified action against illegal migration in 2023 after hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank off the Greek town of Pylos, one of the deadliest boat disasters in the Mediterranean.
Authorities say they continue to target networks sending citizens abroad through dangerous routes, following heightened scrutiny at airports and a series of arrests involving forged documents.
Pakistan’s interior ministry said this week illegal migration to Europe has declined by 47 percent this year after its nationwide crackdown, saying that more than 1,700 human smugglers have been arrested in 2025.
