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Why India could not stop IMF bailout to Pakistan

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Indian paramilitary soldiers stand guard in Srinagar in Indian-administered Kashmir [BBC]

Last week the International Monetary Fund (IMF) approved a $1bn (£756m) bailout to Pakistan – a move that drew sharp disapproval from India as military hostilities between the nuclear-armed neighbours flared, before a US led ceasefire was unexpectedly declared.

Despite India’s protests, the IMF board approved the second installment of a $7bn loan, saying Islamabad had demonstrated strong programme implementation leading to a continuing economic recovery in Pakistan.

It also said the fund would continue to support Pakistan’s efforts in building economic resilience to “climate vulnerabilities and natural disasters”, providing further access of around $1.4bn in funding in the future.

In a strongly worded statement India raised concerns over the decision, citing two reasons.

Delhi questioned the “efficacy” of such bailouts or the lack thereof, given Pakistan’s “poor track record” in implementing reform measures. But more importantly it flagged the possibility of these funds being used for “state-sponsored cross-border terrorism” – a charge Islamabad has repeatedly denied – and said the IMF was exposing itself and its donors to “reputational risks” and making a “mockery of global values”.

The IMF did not respond to the BBC’s request for a comment on the Indian stance.

Even Pakistani experts argue that there’s some merit to Delhi’s first argument. Pakistan has been prone to persistently seeking the IMF’s help – getting bailed out 24 times since 1958 – without undertaking meaningful reforms to improve public governance.

“Going to the IMF is like going to the ICU [intensive care unit]. If a patient goes 24 or 25 times to the ICU then there are structural challenges and concerns that need to be dealt with,” Hussain Haqqani, former Pakistani ambassador to the US, told the BBC.

A sign for the IMF is seen during the 2025 IMF and World Bank Spring Meetings at IMF Headquarters in Washington, DC, USA 25 April 2025.
As one of the 25 members of the IMF board, India’s influence at the fund is limited [BBC]

But addressing Delhi’s other concerns – that the IMF was “rewarding continued sponsorship of cross-border terrorism” thereby sending a “dangerous message to the global community” – is far more complex, and perhaps explains why India wasn’t able to exert pressure to stall the bailout.

India’s decision to try to prevent the next tranche of the bailout to Islamabad was more about optics then, rather than a desire for any tangible outcome, say experts. As per the country’s own observations, the fund had limited ability to do something about the loan, and was “circumscribed by procedural and technical formalities”.

As one of the 25 members of the IMF board, India’s influence at the fund is limited. It represents a four-country group including Sri Lanka, Bangladesh and Bhutan. Pakistan is part of the Central Asia group, represented by Iran.

Unlike the United Nations’ one-country-one-vote system, the voting rights of IMF board members are based on a country’s economic size and its contributions – a system which has increasingly faced criticism for favouring richer Western countries over developing economies.

For example, the US has the biggest voting share – at 16.49% – while India holds just 2.6%. Besides, IMF rules do not allow for a vote against a proposal – board members can either vote in favour or abstain – and the decisions are made by consensus on the board.

“This shows how vested interests of powerful countries can influence decisions,” an economist who didn’t want to speak on the record told the BBC.

Addressing this imbalance was a key proposal in the reforms mooted for the IMF and other multilateral lenders during India’s G20 presidency in 2023.

In their report, former Indian bureaucrat NK Singh and former US treasury secretary Lawrence Summers recommended breaking the link between IMF voting rights and financial contributions to ensure fairer representation for both the “Global North” and the “Global South”. But there has been no progress so far on implementing these recommendations.

Furthermore, recent changes in the IMF’s own rules about funding countries in conflict add more complexity to the issue. A $15.6bn loan by the fund to Ukraine in 2023 was the first of itskind by the IMF to a country at war.

“It bent its own rules to give an enormous lending package to Ukraine – which means it cannot use that excuse to shut down an already-arranged loan to Pakistan,” Mihir Sharma of the Observer Research Foundation (ORF) think tank in Delhi told the BBC.

Indian People walk past the newly unveiled G20 logo in New Delhi, India on 1 December 2022.
Reforms to the IMF’s voting structure were discussed during India’s G20 presidency in 2023 [BBC]

If India really wants to address its grievances, the right forum to present them would be the United Nations FATF (Financial Action Task Force), says Mr Haqqani.

The FATF looks at issues of combating terror finance and decides whether countries need to be placed on grey or black lists that prevent them from accessing funds from bodies like the IMF or the World Bank.

“Grandstanding at the IMF cannot and did not work,” said Mr Haqqani. “If a country is on that [FATF] list it will then face challenges in getting a loan from the IMF – as has happened with Pakistan earlier.”

As things stand though, Pakistan was officially removed from the Financial Action Task Force (FATF) grey list in 2022.

Separately, experts also caution that India’s calls to overhaul the IMF’s funding processes and veto powers could be a double-edged sword.

Such reforms “would inevitably give Beijing [rather than Delhi] more power”, said Mr Sharma.

Mr Haqqani agrees. India should be wary of using “bilateral disputes at multilateral fora”, he said, adding that India has historically been at the receiving end of being vetoed out by China in such places.

He points to instances of Beijing blocking ADB (Asian Development Bank) loans sought by India for the north-eastern state of Arunachal Pradesh, citing border disputes between the two countries in the region.

[BBC]



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Trump tells BBC that King’s visit could ‘absolutely’ help repair relations with UK

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The King and Queen will travel to the US for a four-day visit beginning on Monday (BBC)

US President Donald Trump has said next week’s state visit from King Charles and Queen Camilla could help repair relations with the UK.

When asked in a phone interview with the BBC whether the visit could help repair the relationship, Trump said: “Absolutely. He’s fantastic. He’s a fantastic man. Absolutely the answer is yes.”

“I know him well, I’ve known him for years,” he said. “He’s a brave man, and he’s a great man. They would absolutely be a positive.”

The president also spoke about his relationship with UK Prime Minister Sir Keir Starmer,  who he said could only “recover” if he changed course on immigration.

The King and Queen will travel to the US for a four-day visit beginning on Monday, and will meet with Trump at the White House.

The King will have a private meeting with the president and also deliver an address to Congress.

After two days in Washington DC, they will travel to New York, Virginia and Bermuda before returning to the UK.

The Foreign Office said the trip would mark the 250th anniversary of US independence, and would celebrate a partnership of “shared prosperity, security and history”.

In the five-minute interview on Thursday, Trump was also asked about his relationship with Sir Keir.

The two leaders have appeared at odds over the war in Iran, and the prime minister has faced mounting pressure over his decision to appoint Lord Mandelson as UK ambassador to the US.

In a post on Truth Social on Monday, Trump said Lord Mandelson was “a really bad pick” but the prime minister had “plenty of time to recover”.

When asked what he meant by that post, Trump said: “If he opened the North Sea and if his immigration policies became strong, which right now they’re not, he can recover, but if he doesn’t, I don’t think he has a chance.

Trump has repeatedly called on the UK to increase oil and gas extraction in the North Sea.

“I make my decisions based on what’s in the British national interest and not what other people say or do,” Sir Keir said while talking to broadcasters  about the president’s comments on Thursday.

“That is why I took the decision that we would not be dragged into the war in Iran,” he said. “I’m not going to be diverted or deflected from that by what anybody else says.”

(BBC)

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Will another film star be able to sway the election in India’s Tamil Nadu?

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Actor-turned-politician Vijay greets supporters after filing his nomination for the Tamil Nadu state assembly election, in Chennai, India, March 30, 2026 [Aljazeera]

Standing on top of a customised van on a hot and humid afternoon in Tirunelveli, about 600km (373 miles) south of Tamil Nadu’s capital Chennai in southern India, C Joseph Vijay tells his supporters his opponents have joined hands to stop him from becoming the state chief minister.

“My rivals might appear different from outside, but they have only one aim: that Vijay should not become the chief minister,” says the 51-year-old actor-turned-politician to a mammoth crowd that begins to chant his name, which means “victory” in Tamil, in unison.

Tamil Nadu, one of India’s most developed states with impressive human development indices, also has a long history of electing film stars as leaders, some of whom are still revered by people as demigods years after their deaths.

As Tamil Nadu votes on Thursday to elect its 234-member state legislative assembly, Vijay’s bid for power is the latest addition to the state’s trend of film star-politicians, turning a traditionally bipolar battle into a triangular contest.

Vijay Tamil Nadu India
Riding on personal charisma, Vijay has attracted millions of supporters to his rallies [File: Aljazeera]

Vijay entered politics with much fanfare when he launched the Tamilaga Vettri Kazhagam (TVK) party in 2024, promising to end the decades-old dominance of the governing Dravida Munnetra Kazhagam (DMK) and the main opposition All India Anna Dravida Munnetra Kazhagam (AIADMK).

Incumbent Chief Minister MK Stalin leads the DMK and its 14-party Secular Progressive Alliance, in which the Indian National Congress is a junior partner. On the other hand, opposition leader Edappadi K Palaniswami of the AIADMK heads the 10-party National Democratic Alliance, which also includes Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP).

The DMK and the AIADMK identify themselves as Dravidian parties, which derive their names from a powerful political and social justice movement in Tamil Nadu that opposed caste inequalities, championed social reforms, and rejected perceived attempts by India’s more dominant north Indian parties to impose Hindi – and upper-caste Hindu values – on the non-Hindi speaking southern states.

Dravidian parties have held power in Tamil Nadu continuously since 1967, with national parties like the Congress and the BJP playing secondary roles. While the BJP is contesting 27 seats in alliance with the AIADMK, the Congress is fighting for 28 seats as part of the DMK-led coalition.

More than 87 percent of Tamil Nadu’s 72 million people are Hindu, followed by Christians at 6.1 percent and Muslims at 5.8 percent, according to the last census conducted in 2011.

Among Hindus, the so-called “backward” or less-privileged castes constitute 45.5 percent, “extremely backward” castes 23.6 percent, while Dalits are at 20.6 percent. Dalits, formerly referred to as “untouchables”, fall at the bottom of India’s complex caste hierarchy and have faced marginalisation and violence for centuries.

Vijay, son of a Christian filmmaker father and a Hindu mother who is a background singer in films, belongs to the Vellalar community, an affluent agrarian group in Tamil Nadu with both Hindu and Christian members.

Vijay started his film career as a child actor in movies directed by his father. His 1992 debut as a hero, however, in Naalaiya Theerpu (Tomorrow’s Verdict), flopped. Following the setback, his father cast him alongside popular star Vijayakanth — who later founded his own political outfit, Desiya Murpokku Dravida Kazhagam (DMDK) — in Senthoorapandi (1993), which gave his career a new lease of life.

It was the 2004 film Ghilli (Gutsy), which carried a subtle political undertone, that catapulted Vijay to superstar status. He dropped hints about his political ambitions in the 2013 hit Thalaivaa (Leader), which was launched with the tagline: “Time to Lead”.

Soon, political messaging became central to many of Vijay’s subsequent films. Even the title of his yet-to-be-released Jana Nayagan (People’s Leader) — which he claims will be his final film — alludes to his political aspirations.

Riding on personal charisma, Vijay has attracted millions of supporters to his rallies, despite allegations of poor crowd management, which caused a stampede at one such gathering in September last year, killing 42 people.

He is expected to draw a share of Dalit and minority Christian votes that would have otherwise flowed to the DMK-led coalition. He is also banking on anti-incumbency votes that could have benefited the AIADMK alliance.

Yet analysts say Vijay’s ambition of becoming the next chief minister will not be as easy as the scripted blockbusters he has built his career on, since he faces two opponents with decades of experience in real politics.

That leads political commentator R Kannan to describe Vijay as “both a blessing and a curse” for the two Dravidian coalitions.

“When the AIADMK joined the BJP-led NDA, many predicted the Dravidian party would lose heavily, with minorities and Dalits flocking to the DMK. Vijay’s entry, however, has offered the AIADMK a ray of hope — he is expected to draw a decent share of votes that would otherwise have gone to the DMK,” he said.

“At the same time, he works in the DMK’s favour by siphoning off anti-incumbency votes that might have gone entirely to the AIADMK. For both Dravidian parties, he is at once a blessing and a curse.”

Vijay is aiming to follow the path of illustrious predecessors: Maruthur Gopalan Ramachandran, popularly known as MGR, and his protege, Jayaram Jayalalithaa – Tamil Nadu’s most beloved on-screen pair.

Born into poverty, MGR’s rise to stardom was nothing short of phenomenal. He captured the imagination of Tamil Nadu’s working class, who idolised him in return. From his first superhit, Rajakumari (Princess) in 1947, his films cast him as a champion of the masses, battling oppression and corrupt authority.

MGR launched the AIADMK in 1972 after breaking away from the DMK and served as Tamil Nadu’s chief minister from 1977 to 1987. He introduced several welfare programmes, the most significant being a free meal scheme for schoolchildren in order to eliminate malnutrition and boost school enrolment.

His political heir, Jayalalithaa, was a six-time chief minister between 1991 and 2016, when she became India’s first female state leader to die in office. She is remembered for launching several women-centric programmes, including all-women police stations and subsidised two-wheelers for working women, apart from her work in curbing female infanticide.

India Jayalalithaa
Jayalalithaa offering flowers to a portrait of AIADMK founder MG Ramachandran in Chennai, May 20, 2016 [Aljazeera]

The DMK also has a history of film personalities, including the party’s founder, CN Annadurai, who rose to fame as a pathbreaking scriptwriter with films like Velaikkari (1949), and MGR as the party’s star campaigner and leader before he founded the AIADMK.

Soon, Muthuvel Karunanidhi emerged as another prominent writer, poet and screenwriter with films like Parasakthi (1952), meaning Supreme Power, often cited as a turning point in Tamil cinema. Directed by Krishnan-Panju and written by Karunanidhi, then 28 years old, the film fiercely attacked casteism and social inequality, while propelling the spread of the Dravidian ideology.

Karunanidhi, popularly known as Kalaignar (artist), wrote scripts for more than 75 films that resonated with the struggles of the working class, championing rationalism and social equality.

He won the Tamil Nadu Legislative Assembly election for a record 13 terms and served as the state’s chief minister for five terms between 1969 and 2011. He died at the age of 94 in 2018, with his son, Stalin, taking over as the DMK chief.

Film star-politicians who embraced Tamil identity politics flourished, while those who did not fell by the wayside.

“Successful leaders such as MGR, popularly known as Puratchi Thaalaivar [Revolutionary Leader], Jayalalithaa, who earned the monikers Puratchi Thalaivi [Revolutionary Female Leader] and Amma [Mother], embraced identity politics. Another popular film actor, Sivaji Ganesan, by contrast, could not make the same mark in politics even after he tried,” said Kannan, who has written biographies of MGR and Annadurai.

Narendra Modi and the chief minister of Tamil Nadu state M.K. Stalin
Indian PM Narendra Modi, left, and MK Stalin, chief minister of Tamil Nadu, gesture during the foundation stone laying ceremony of various infrastructure projects, in Chennai, May 26, 2022 [Aljazeera]

In 2005, popular actor Vijayakanth added to the starry mix by launching his DMDK party, another Dravidian political outfit. He made every attempt to position his party as an alternative to the DMK and the AIADMK, but failed. The party won just one seat in 2006 — Vijayakanth’s own — and drew a blank in 2009. Though he went on to become the leader of the opposition in the assembly in 2011, the election reverses forced him to seek alliances. The DMDK, now led by his wife Premalatha, is contesting 10 seats in alliance with the DMK.

Which is where, say analysts, Vijay’s pitch for power is unlikely to make an impact in this election. They say his TVK party does not fall in the long line of Dravidian parties that have a distinct political ideology and programme that appeals to their voters.

“Tamil Nadu is an ideologically and politically evolved state. Issues such as social justice, centre-state relations, and linguistic and cultural identity are paramount here. People will not back a politician without a clear ideology,” Ramu Manivannan, former professor of political science at the University of Madras, told Al Jazeera.

Manivannan said large crowds at Vijay’s rallies should not be mistaken for potential votes. “Film stars always attract crowds. To assume all of them will translate into votes is unfair.”

Vijay’s TVK is rooted in his fan clubs, which thrive on masculine aggression, said S Anandhi, retired professor at the Madras Institute of Development Studies.

“Vijay’s populist rhetoric — defying all authority — appeals strongly to the youth. But he never clarifies what he will actually do in power. He frames it as all established forces being arrayed against young men, and youngsters see this as an opportunity for a new kind of collectivisation. I would call it a dangerous class,” she told Al Jazeera.

Vijay appears to be banking heavily on two voter blocs: younger voters between 18 and 39 years, who number 23 million of the state’s 57 million voters, and women, who account for more than half of them.

At his rallies packed with young people and women, Vijay has alleged that Stalin’s true allies are “bribery and corruption”, framing the contest as a personal battle between himself and the chief minister.

Stalin, for his part, has largely brushed off Vijay’s attacks. “Newly-formed parties have a wrong notion that they can survive by criticising DMK,” he said in a recent interview.

Instead, Stalin has focused his attacks on the Modi government, accusing it of depriving Tamil Nadu of its share of federal funds, and framing the election as a contest between Tamil Nadu and New Delhi – a ploy that simultaneously targets the AIADMK for allying with an “adversary”, the BJP.

The AIADMK’s Palaniswami has countered by saying Stalin raises the centre-state issue only because he has “no achievements of his own to show”.

Despite their ideological differences, all parties are competing heavily on welfare promises in a state known for freebies during elections.

The DMK has pledged to double the monthly women’s allowance to 2,000 rupees ($21), offer 8,000 rupees ($85) in home appliance coupons, and build one million homes for the poor over five years. The AIADMK, also promising a monthly allowance of 2,000 rupees for women, has additionally offered free refrigerators to the poor and a one-time family grant of 10,000 rupees ($106).

Vijay’s TVK, hoping to cash in on the ongoing global fuel crisis, has promised six free LPG cylinders annually, 2,500 rupees ($26.5) monthly support for the female heads of a household, 8gm gold and a silk saree for poor women getting married, 4,000 rupees ($42.5) stipend for unemployed college graduates, and interest-free education loans of up to 2 million rupees ($21,257).

Still, Kannan feels Vijay can at best be a disruptor in the three-cornered contest.

“Vijay’s campaign gained momentum in the final lap. He turned what was a bipolar contest into a three-cornered one. But apart from his personal charisma, he lacks proper organisational machinery. Many of his party’s candidates are unknown faces,” he said.

[Aljazeera]

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South Korean fighter jets collided due to pilots taking pictures, report finds

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The incident involved two F-15K fighter jets, seen here in a file picture [BBC]

South Korean authorities have found that two fighter jets collided mid-air in 2021 because the pilots were taking pictures and videos.

The incident took place while the jets were on a flight mission in the central city of Daegu, according to Seoul’s Board of Audit and Inspection.

The pilots survived with no injuries, but the collision damaged the planes, costing the military 880 million won ($596,000; £440,500) in repairs.

One of the pilots, who has since left the military, was made to pay a fine of 88 million won.

The incident took place because that pilot had wanted to take photos to commemorate his last flight with his military unit.

Taking photos of significant flights was “a widespread practice among pilots at the time”, the audit board said in a report published on Wednesday.

The pilot had declared his intent to do so in a briefing before the flight, according to the report.

He was flying the wingman aircraft and was following the lead aircraft during the mission. While flying back to their base, he started taking pictures using his personal mobile phone.

Upon noticing this, the pilot of the lead aircraft then asked another pilot on his plane to film a video of the wingman aircraft.

The wingman pilot then abruptly flew his jet up higher and flipped it so that it could be better captured on camera. This manoeuvre brought the two planes very close to each other.

To avoid a crash, the lead aircraft tried to rapidly descend. But the two F-15K jets eventually collided, damaging the lead aircraft’s left wing and the wingman aircraft’s tail stabiliser.

South Korea’s air force suspended the wingman pilot, who has since left the military to work for a commercial airline.

Subsequently, the air force sought to fine the wingman pilot 880 million won to cover the full amount of the repair costs. When the pilot appealed against the fine, it prompted an investigation by the audit board.

The wingman pilot acknowledged his sudden manoeuvre led to the collision, but argued that the lead aircraft’s pilot had “tacitly consented” to the manoeuvre since he was aware that filming was taking place.

The audit board eventually ruled that the wingman pilot should only pay a tenth of what the air force sought.

It said that the air force should bear some responsibility for not properly regulating pilots’ personal use of cameras.

The board also took into account that the wingman pilot had a good track record prior to the incident, and that he had managed to prevent further damage by promptly commandeering a safe return of his aircraft to the base.

The report did not mention whether any action was taken against the other pilots involved in the incident.

[BBC]

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