Pahalgam terror attack live today: India to ask IMF to review loans, grants to Pakistan details

 Following the devastating terrorist attack in Pahalgam, Jammu and Kashmir, on 22 April 2025, which claimed the lives of 26 civilians, India has formally requested the International Monetary Fund (IMF) to reassess its financial assistance to Pakistan. The Indian government contends that IMF funds should not be diverted to support military expenditures or repay debts to third countries, especially in light of allegations that Pakistani nationals were involved in the attack .(Wikipedia, The Hindu)

The attack, carried out by five armed militants, targeted tourists in the Baisaran Valley near Pahalgam. The Resistance Front (TRF), believed to be an offshoot of the Pakistan-based Lashkar-e-Taiba, initially claimed responsibility but later retracted the statement. India maintains that the assailants were linked to Pakistan, a claim Islamabad denies, calling for a neutral investigation .(Wikipedia, Reuters)

In response to the attack, India has taken several measures, including suspending the Indus Waters Treaty, revoking visas for Pakistani nationals, and closing airspace to Pakistani aircraft. Additionally, India is considering advocating for Pakistan's re-entry onto the Financial Action Task Force (FATF) grey list, which could further restrict Islamabad's access to international financial assistance .(The Daily Guardian)

The IMF had previously approved a $7 billion bailout for Pakistan in September 2024, with an additional $1.3 billion allocated for climate resilience. India's recent appeal to the IMF underscores concerns that these funds might be misused to finance defence-related activities rather than developmental projects .(Reuters, The Hindu)

The international community, including the United States, has urged both India and Pakistan to de-escalate tensions and cooperate in investigating the attack. However, with both nations taking reciprocal measures and military skirmishes reported along the Line of Control, the situation remains precarious .(Financial Times, Wikipedia)

India targets Pakistan’s terror funding, eyes FATF ‘grey list’ return: As part of its escalatory matrix against Pakistan for the terror attack in Pahalgam on April 22, India is considering two specific moves aimed at curbing financial flows that aid the neighbour fund terror activities. The first is to make a concerted effort to try and bring back Pakistan into the ‘grey list’ of Financial Action Task Force (FATF), the global money laundering and terror financing watchdog, two people in the know told The Indian Express. Pakistan was put in the ‘grey list’ in June 2018, and faced “increased monitoring” till it was removed in October 2022.