Indian officials have warned the International Monetary Fund (IMF) not to give a bailout for Pakistan. They argue that the country has been under the scrutiny of the Financial Action Task Force (FATF) and is in the greylist for terror financing.
During meetings in Washington, Indian officials pointed out that the multilateral agency can face ‘possible embarrassment’ if it bails out Pakistan, as the country is ‘grey-listed’ and facing a high probability of getting ‘black-listed’.
Making the FATF blacklist means severe restrictions on the country’s financial transactions with other nations. Indian officials further suggested that the IMF funds would be at risk.
The recent warning has come ahead of next month’s peer review of Pakistan’s progress regarding FATF’s prescribed action plan. According to the country’s media, India has been a part of the annual meetings of the IMF and the World Bank.
It needs to be mentioned here that Pakistan is working hard to get off the FATF greylist. It has filled several gaps in the policies to curb terror financing. The next review of Pakistan’s progress will take place in June 2019.
India has been trying to sabotage Pakistan’s efforts to get removed from the list by damaging its cause in front of the international community. It accused Pakistan of fostering terrorism on its soil after terrorist attacks on its forces in Pulwama.