Rajnath tells IMF that Pakistan uses loans to finance terror

In a pointed diplomatic intervention, Defence Minister Rajnath Singh on Friday urged the International Monetary Fund (IMF) to reassess its financial support to Pakistan, warning that a significant share of the funds may be diverted towards terrorist infrastructure rather than genuine economic reform.

Speaking at a policy event in New Delhi, Singh said, “There is credible information suggesting that a large portion of the financial assistance being provided to Pakistan is being used to fund terror networks. The international community must take this seriously.”

Singh’s remarks suggest a growing push by India to raise the issue of terror financing at global financial forums with the aim of bringing greater scrutiny to how international aid is utilised in Pakistan.

“The IMF and other financial institutions must ensure that their funds are not misused,” Singh added. “Loans meant for economic recovery should not be channelled into activities that destabilise the region or threaten peace.”

While Singh did not provide specifics on the intelligence cited, Indian officials have long accused Pakistan of providing support to cross-border terrorist groups. The statement marks one of the rare occasions a senior Indian minister has publicly called for the IMF to reconsider a sovereign loan on national security grounds.

Analysts say Singh’s comments reflect a broader strategic shift in India’s foreign policy, wherein financial diplomacy is being increasingly used to supplement conventional security measures.

India has previously raised concerns about terror finance with the Financial Action Task Force (FATF), but this direct appeal to the IMF indicates a deepening of its efforts to tie global lending practices to security outcomes.

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