World Bank and IMF Endorse Pakistan with Major Loans, Dismiss India's Terror Allegations

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Representational image of a bazaar in Pakistan where a number of Muslim men, women, and children are walking and buying items from roadside shops. Image created with Meta AI by RMN News Service.

World Bank and IMF Endorse Pakistan with Major Loans, Dismiss India’s Terror Allegations

RMN News Story Highlights

World Bank and IMF approve major loans for Pakistan: The IMF approved $1.4 billion, and the World Bank will invest $40 billion over 10 years, signaling strong international financial backing.
International bodies reject India’s terror claims: The approval of these loans by the IMF and World Bank is seen as a dismissal of India’s accusations that Pakistan supports terrorism.
Modi regime accused of politicizing terror: The article suggests India’s PM Modi and BJP stage terror claims for electoral gain, refusing independent investigations.
India’s international credibility questioned: Attempts by India to convince other nations of Pakistan’s terror involvement have reportedly failed, indicating a lack of trust in the Modi regime.

By Rakesh Raman
New Delhi | May 31, 2025

Islamabad, Pakistan – In a significant development for Pakistan’s economic outlook, both the International Monetary Fund (IMF) and the World Bank have demonstrated strong confidence in the nation, approving substantial financial support while implicitly rejecting India’s long-standing accusations of state-sponsored terrorism. This move marks a notable shift in international perception and financial backing for Pakistan.

Following the IMF’s approval of a $1.4 billion bailout loan for Pakistan in May 2025, the World Bank has now unveiled an unprecedented investment. Under its newly introduced 10-year Country Partnership Framework (CPF), the World Bank will channel a landmark $40 billion into Pakistan between 2026 and 2035, moving beyond its previous five-year strategy model. This substantial commitment underscores a clear international stance that does not align with India’s unsubstantiated claims regarding Pakistan’s alleged support for terrorism and involvement in terror activities.

According to reports, Pakistan’s Ministry of Economic Affairs has already begun developing a comprehensive implementation framework for these funds, aligning with the government’s priorities and the National Economic Transformation Plan, “Uraan Pakistan.”

The initial phase of this long-term partnership will see Pakistan receive $20 billion in sovereign loans through the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD). This funding is earmarked for critical sectors including education, healthcare, clean energy, climate change mitigation, and air quality enhancement, aiming to foster sustainable development and improve the quality of life for Pakistani citizens.

[ US State Department Offers Cautious Response to RMN News Queries on India-Pakistan Conflict ]

Beyond sovereign loans, the framework also aims to accelerate private sector participation. The International Finance Corporation (IFC), a member of the World Bank Group, is set to facilitate an additional $20 billion in private investment, designed to stimulate economic growth and create much-needed employment opportunities across the country.

The approval of these massive financial packages by both the IMF and the World Bank reflects a broader international consensus that largely dismisses India’s terror claims against Pakistan. Many observers believe that Indian Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) often orchestrate such accusations to leverage anti-Pakistan sentiment for electoral advantage, particularly among India’s Hindu-majority electorate.

Critics point to the Modi regime’s consistent refusal to allow independent investigations into terror attacks, such as the Pahalgam attack of April 2025 or the Pulwama attack of 2019. It is widely perceived that after each such incident, Modi and the BJP immediately launch political rallies, claiming military victories over Pakistan to appeal to Hindu voters.

The main opposition party in India, the Congress, has repeatedly accused the Modi government of politicizing terror attacks and subsequent military actions. However, these complaints have largely been ignored by the Modi regime, which reportedly dismisses the Congress’s credibility and leadership.

Furthermore, efforts by the Modi government to send delegations of handpicked politicians to various countries to convince them of Pakistan’s alleged involvement in terror activities have largely failed. These delegations of retired politicians reportedly struggled to secure meetings with top foreign politicians or government officials, indicating a widespread lack of trust in the Modi regime’s narrative on the international stage.

In light of what is seen as a pattern of deceptive claims by Modi and his colleagues regarding conflicts with Pakistan, a new proposal advocates for the development of a comprehensive India-Pakistan Conflict Dossier. This initiative calls upon global institutions to act as observers and facilitators in the peace process, aiming to end hostilities between the two nuclear-armed neighbors. The proposed dossier is intended to cover the political, historical, military, and humanitarian dimensions of the protracted dispute.

By Rakesh Raman, who is a national award-winning journalist and social activist. He is the founder of a humanitarian organization RMN Foundation which is working in diverse areas to help the disadvantaged and distressed people in the society.