India has abstained from voting on the International Monetary Fund’s (IMF) review of Pakistan's USD 1 billion Extended Fund Facility (EFF) and the proposed USD 1.3 billion Resilience and Sustainability Facility (RSF), citing deep concerns over the potential misuse of funds. In a strong statement, India questioned the effectiveness of past IMF bailouts and warned that such funds risk supporting “state-sponsored cross-border terrorism.”

India highlighted Pakistan's military's deep entrenchment in economic affairs, calling it a major risk for policy slippages and reform reversals. Citing a 2021 UN report on military-linked businesses in Pakistan, India emphasized how IMF funds might indirectly strengthen such networks.

The Indian finance ministry argued that rewarding nations accused of fostering terrorism undermines global financial credibility and moral values. While other countries echoed these concerns, India criticized IMF procedures for ignoring ethical considerations, calling for stricter safeguards to prevent financial aid from being misused for destabilizing activities.