On Saturday, Jammu and Kashmir Chief Minister Omar Abdullah criticized the IMF's decision to grant Pakistan a $1 billion loan, accusing the global financial institution of "essentially reimbursing" Pakistan for the ammunition used to devastate border regions in the Union Territory. The International Monetary Fund had approved the disbursement of approximately $1 billion to Pakistan under the Extended Fund Facility (EFF) on Friday, prompting the reaction from Abdullah.

Abdullah expressed his concerns on social media, stating, "I’m not sure how the 'International Community' expects tensions in the subcontinent to de-escalate when the IMF is essentially reimbursing Pakistan for the ordnance it is using to devastate areas like Poonch, Rajouri, Uri, Tangdhar, and so many others." His remarks highlight his belief that the financial support might be enabling Pakistan to continue its actions in the region, further escalating the conflict.

India, which abstained from voting on the IMF loan, voiced its objections by emphasizing that rewarding Pakistan for its ongoing support of cross-border terrorism sends a dangerous message to the global community. India also argued that such actions expose financial institutions and donors to reputational risks while undermining global values of peace and stability. India's response was aimed at condemning the IMF's decision, suggesting that it could hinder efforts to bring about a peaceful resolution in the region.