World Bank Expected To Approve USD 20 Billion Package To Pakistan, India To Ask It To Reconsider Decision Following Pahalgam Attack

New Delhi : India is set to approach the World Bank and the terror financing watchdog, Financial Action Task Force, as it plans to tighten the screws on Pakistan’s economy, which is heavily reliant on loans and bailouts. India will also actively pursue the FATF to get Pakistan back onto its grey list, which will increase scrutiny on Pakistan’s financial transactions, potentially restricting foreign investments and capital inflows.

Pakistan was put on the FATF ‘grey list’ in June 2018. However, it was removed from the list in October 2022 after the government committed to curb terror funding. Pakistan also claimed to have jailed and confiscated assets of individuals linked to terror groups.

Sources said the government was disappointed with the $1 billion (around Rs 8,500 crore) bailout package granted by the International Monetary Fund (IMF) to Pakistan on May 9 at the height of hostilities.