India To Talk To World Bank, Global Watchdog Over Pak's 'Terror Funds' Supply: Sources

India, fresh from the military success of Operation Sindoor, is set to raise the pitch of efforts to highlight Pakistan's continued funding of cross-border terror, government sources told NDTV Profit Friday.

Sources said a two-pronged approach will involve a June meeting with the World Bank and a discussion to put Pak back on the 'grey list' of the Financial Action Task Force, a global anti-terror funding agency.

This comes amid media reports in Pak that Islamabad wants the World Bank to fast-track a 10-year, $20 billion loan deal - for private sector growth and climate resilience - agreed in January.

Days earlier the International Monetary Fund cleared a billion-dollar bailout. The IMF said Pakistan had "met all required targets" to receive a fresh instalment of the $2.3 billion package.

READ | Days After India's Message, IMF Defends Bailout Package To Pak

The Indian government had earlier expressed its disappointment that international agencies have chosen to transfer billions in 'aid' to Islamabad at this time, i.e., in the aftermath of the terror attack in Jammu and Kashmir's Pahalgam, and military escalation by the Pakistan Army.

Sources said Finance Minister Nirmala Sitharaman spoke directly to the IMF Managing Director Kristalina Georgieva and urged her not to approve any financial aid to Pakistan. Ms Georgieva was told India is not against funding for any country, but pointed to the timing of this particular tranche.

Sources also said the Indian government had conveyed to the IMF that data from previous years indicated an uptick in Pakistan's arms procurement after receiving aid from the agency.

Delhi was particularly irked that the IMF chose to release the funds while Pakistan was in the middle of firing a barrage of drones and missiles at military and civilian centres in western India.

The IMF, sources said, had been presented with data showing misuse of its funds by Pak.

India abstained from voting on the aid proposal last month but it passed anyway, despite many of the other member countries having condemned Pak for the Pahalgam terror attack.

Defence Minister Rajnath Singh warned the IMF, and other international funding bodies, Pak had already announced plans to spend government money - including that received as aid - in rebuilding locations the Indian military had identified as terror outfit HQs and training camps.

READ | '14 Crore To Masood Azhar...': Rajnath Singh's Warning On Pak Terror Plans

Op Sindoor targeted nine such locations - four in Pak and five in Pak-occupied Kashmir.

Mr Singh also warned that Pak plans to give tax revenue - as much as Rs 14 crore, money the cash-strapped country could put towards education or healthcare - to Masood Azhar.

Azhar is recognised by the United Nations as an 'international terrorist', and is the leader of the banned Jaish-e-Mohammed that was behind the 2019 Pulwama and 2016 Uri terror attacks.

READ | "Indirect Terror Funding": Rajnath Singh Cautions IMF Over Pak Aid

"The IMF's aid to Pak is form of indirect funding to terror," Mr Singh said, "Any financial assistance to Pak is funding terror activities. The IMF should reconsider its decision."

Pak's 'Terror Funder' Status

In 2018 Pak was put on a 'grey list' of the Financial Action Task Force, or FATF, a global watchdog for financing terrorism and money laundering. In 2022 it was removed from that list.

FATF said the Pak government had reasonably strengthened its anti-money laundering setup and worked on combating terror financing, besides addressing technical deficiencies.

Being on the 'grey list' meant Pak struggled to get aid from financial institutions like the IMF.

ARCHIVES | Pak Taken Off Global Watchdog's 'Grey' List For Terror Financing

India, one of the 40 FATF members, had strenuously objected to Pak's removal from the 'grey list', saying Islamabad continues to harbour terrorists and funds their organisations.

This issue has also been flagged in other international forums, like the United Nations and the UN Security Council. The latter had tough questions for Pak after the Pahalgam attack.

Meanwhile, the Pak government has also sought an additional $4.9 billion from international banks to meet its external financing needs and strengthen its foreign exchange reserves.

NDTV is now available on WhatsApp channels. Click on the link to get all the latest updates from NDTV on your chat.