India to Challenge World Bank and FATF Over Financial Aid to Pakistan Amid Terror Concerns

In a decisive diplomatic move, India is preparing to approach the World Bank and the Financial Action Task Force (FATF) to express serious concerns over continued financial support to Pakistan, citing its alleged misuse of international funds and ongoing terror financing links.

According to official sources, India will urge the World Bank to reconsider its anticipated approval of a $20 billion package to Pakistan scheduled for June. This appeal follows India’s strong opposition to the $1 billion IMF bailout granted to Pakistan on May 9, during escalating regional tensions. The Indian government conveyed its disappointment directly to IMF Managing Director Kristalina Georgieva, highlighting that such support appeared to embolden rather than restrain Pakistan’s destabilizing actions.

India is also set to push FATF to reinstate Pakistan on its ‘grey list’, which would increase monitoring of its financial systems and potentially restrict international capital inflows. Pakistan was removed from the grey list in October 2022 after claiming to have curbed terror financing and prosecuted individuals linked to extremist groups.

Indian officials have pointed to IMF data indicating that Pakistan’s past bailout funds—28 programs in total—have often been diverted towards military spending rather than economic reform. The government has raised these issues with finance ministers from Germany, Italy, and France as well.

While India clarified that it does not oppose financial aid to countries in need, it emphasized the need for transparency and accountability, especially when funds risk fueling regional instability.