Bhuj, Gujarat, May 16, 2025 — In a strongly worded statement from the Bhuj Air Base, Defence Minister Rajnath Singh called upon the International Monetary Fund (IMF) to revisit its decision to provide a $1 billion aid package to Pakistan. Singh raised concerns that the funds could potentially be diverted to support terrorist infrastructure and activities targeting India.
“The global community must exercise caution,” Singh said during an address to military personnel. “Financial aid meant for economic stability should not end up funding proxy wars. The IMF has a responsibility to ensure that its assistance does not indirectly facilitate cross-border terrorism.”
Singh’s comments come against the backdrop of a fragile ceasefire currently holding between India and Pakistan after a tense period of military confrontations earlier this month. On May 10, both sides reportedly agreed to halt further escalation following sustained hostilities along the Line of Control (LoC).
Pakistan’s Prime Minister Shehbaz Sharif, during a visit to the Kamra air base on May 15, expressed willingness to engage in dialogue with India for peace, provided that the Kashmir dispute is addressed. India, however, maintains that meaningful engagement can only occur after an end to terrorism emanating from Pakistani territory.
The IMF’s aid package, intended to help stabilize Pakistan’s struggling economy, has come under scrutiny from Indian policymakers and analysts alike. With inflation soaring and foreign reserves dwindling, Pakistan’s financial crisis has deepened in recent months, leading the government in Islamabad to seek international assistance.
Indian officials argue that without strict oversight mechanisms, such aid could be misused.
“This is not a baseless accusation. We’ve seen in the past how financial assistance has been repurposed for military and strategic objectives under the guise of economic reform,” said Lt. Gen. (Retd.) K.K. Rao, a defense expert. “The IMF must ensure transparency and conditionality.”
The Defence Minister’s remarks signal a broader shift in India’s diplomatic posture, which now includes challenging the economic narratives surrounding regional security. Singh also praised the Indian armed forces for their “calm professionalism” during the recent face-off and reiterated the government’s commitment to safeguarding national security.
As the ceasefire continues through May 18 under a mutual understanding, the international community watches closely, hoping that the pause in hostilities paves the way for a more sustained peace. Whether financial diplomacy and pressure on global institutions will influence Pakistan’s behavior remains to be seen.
