India is planning to take action to put pressure on Pakistan’s weak economy. According to sources, India will talk to the World Bank and ask it not to approve a big loan of $20 billion to Pakistan. The loan is expected to be approved in June.

India is also planning to talk to the Financial Action Task Force (FATF), which is a global group that checks terror financing. India wants FATF to place Pakistan back on its ‘grey list’. This list increases checks on a country’s financial activities. If Pakistan is added to the grey list again, it may face trouble in getting money from foreign investors and banks.

Pakistan was earlier placed on FATF’s grey list in June 2018. But it was removed from the list in October 2022 after the country promised to stop the flow of money to terror groups. Pakistan also said it had jailed people connected to terrorism and taken their properties.

Sources said the Indian government was upset after the International Monetary Fund (IMF) gave Pakistan a bailout of $1 billion on May 9. This happened while tensions were high between the two countries.

India feels that more pressure should be put on Pakistan to stop helping terror groups and their financial networks.

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