As tensions between India and Pakistan have been escalating after the Pahalgam terror attack, India now might oppose to $1.3 billion International Monetary Fund (IMF) loan to debt-ridden Pakistan in the upcoming board meeting. 

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While opposing Pakistan's loan package during the meeting, India will cite Pakistan's "support to terrorism" as the reason. 

"There is a view that supports to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up," Economic Times reported citing a familiar source. 

Also read: Pahalgam terror attack: Pakistan minister claims India planning 'military strike within next 24 to 36 hours'

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The global lender IMF is set to review a proposed $1.3 billion loan for Pakistan on May 9 as part of its climate resilience program. 

Moreover, the IMF board will also assess Pakistan's progress on policy commitments tied to the existing $7 billion bailout package. 

Earlier in the last meeting, India had abstained from voting on Pakistan's bailout package. However, this time, India is planning to vote "against" the loan package to Pakistan, stressing that it misuses the funds given by the IMF. 

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Also read: Man claims he captured Pahalgam terrorists on video while making reel, submits footage to NIA

Last year, Pakistan secured the $7 billion Extended Fund Facility to get itself out of the economic crisis. However, it will be disbursed in installments. The IMF disbursed $1 billion immediately to Islamabad at that time. 

Now, if it gets cleared and approved by the IMF board, it could unlock another tranche of funding for cash-strapped Pakistan. 

On Wednesday, Indian Prime Minister Narendra Modi gave "complete operational freedom" to the Armed Forces to respond to Pakistan in the wake of the Pahalgam terror attack, that claimed the lives of at least 27 people. 

Moreover, earlier today, PM Modi chaired key Cabinet Committee on Political Affairs and Cabinet Committee on Security meetings. 

The Cabinet Committee on Security (CCS), chaired by PM Modi, has reviewed the overall security situation in Jammu and Kashmir amid speculation about India's potential response to the Pahalgam terrorist attack. 

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