Rajnath Singh, India’s defense minister, has made a compelling case for the International Monetary Fund (IMF) to reevaluate its recent decision to give Pakistan a USD 1 billion aid package.
Speaking on May 16, 2025, at the Bhuj Air Force Station, Singh issued a warning that instead of assisting with humanitarian necessities or economic changes, Islamabad would abuse this financial assistance to directly or indirectly finance terror infrastructure.
“Any kind of financial assistance to Pakistan in today’s time is nothing less than terror funding,” he said, adding that India does not want its IMF contributions to be used to establish or maintain terrorist networks in Pakistan or any other nation.
Singh’s remarks are made in the midst of recent cross-border violence that has escalated military tensions between India and Pakistan. During a four-day conflict, Pakistani military raids hit several installations, including the Bhuj Air Force facility, where Singh gave his speech.
India responded by launching Operation Sindoor, a military campaign that targeted terror infrastructure in Pakistan and Pakistan-Occupied Kashmir. Singh said the mission was very successful and demonstrated the bravery and operational prowess of the Indian Air Force.
Asserting that a sizable amount of the aid may be “utilised to fund terror infrastructure,” the defence minister questioned the IMF’s decision and urged the international community to take into account the dangers of international financial support being redirected for state-sponsored terrorism. He also cautioned that Pakistan is still under “probation” under the current truce and that India would impose the “strictest punishment” on it if its behavior worsened.
References to Pakistan’s purported history of aiding terrorist organizations and the possibility that IMF monies could be used to restore demolished terror camps or finance operations endangering regional security served to highlight India’s worries. Singh’s remarks are consistent with India’s larger policy position that international organizations should make sure recipient nations don’t abuse their financial aid for destabilizing purposes.
Rajnath Singh’s comments, which call on the IMF to reconsider its financial ties with Pakistan in view of security issues and the possibility of indirect financing of terrorism, are a major diplomatic step. He urged accountability and attention in global money flows, particularly in areas that are prone to war.