Islamabad: As war escalates with neighbouring India and its economy crumbles under mounting pressure, Pakistan has issued an urgent appeal to international financial institutions and allied nations, seeking emergency loans to stay afloat. The country’s Economic Affairs Division acknowledged the deepening crisis, warning of dire consequences if global assistance is not extended immediately.
In a public post on social media platform X, the Pakistani government stated:
“Amid escalating war and stocks crash, we urge international partners to help de-escalate. Nation urged to remain steadfast.”
The plea comes as Pakistan’s stock markets plummet, investor confidence erodes, and inflation spirals out of control in the aftermath of Operation Sindoor—a military offensive launched by India in response to the deadly Pahalgam terror attack on April 22, which claimed 26 lives.
IMF Bailout in Question as India Urges Caution
Adding to Islamabad’s woes, India has signalled its opposition to a new IMF bailout package for Pakistan. On Thursday, Indian Foreign Secretary Vikram Misri said that New Delhi’s executive director at the International Monetary Fund will present the country’s concerns during a critical IMF board meeting in Washington.
“I am sure that our executive director will put forward India’s position… The case with regard to Pakistan should be self-evident to those people who generously open their pockets to bail out this country,” Misri said.
He also noted that most of the 24 previous IMF bailout packages sanctioned for Pakistan had failed to reach successful conclusions, raising concerns over the effectiveness and sustainability of any new financial support.
Operation Sindoor: A Turning Point
India’s military action—codenamed Operation Sindoor—was executed in the early hours of Wednesday, involving joint operations by the Army, Navy, and Air Force. Key terror camps of Jaish-e-Mohammed (JeM) and Lashkar-e-Taiba (LeT) in Pakistan and Pakistan-Occupied-Kashmir (PoK) were targeted.
In a stunning admission, JeM chief Maulana Masood Azhar confirmed that ten members of his family and four close aides were killed in the missile strikes.
The strikes were seen as a direct response to the April 22 Pahalgam attack, which is being described as one of the deadliest terrorist incidents in India since the revocation of Article 370 in Jammu and Kashmir in 2019.
Economic Fallout and Global Repercussions
Pakistan’s repeated reliance on foreign loans is now drawing global scrutiny. As war expenses balloon and economic reforms stall, international lenders remain wary of pumping funds into an unstable regime. The country’s foreign reserves are critically low, and energy shortages are adding to the public’s distress.
The crisis raises fresh questions about regional stability, as well as the ability of financial institutions like the IMF to enforce accountability while offering humanitarian support during armed conflict.
