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Former Pentagon official criticizes Trump over Pakistan IMF bailout decision.

Published On Fri, 16 May 2025
Raghav Srinivasan
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Michael Rubin, a former Pentagon official and senior fellow at the American Enterprise Institute, sharply criticized both the Trump administration and the International Monetary Fund (IMF) for approving a $1 billion bailout for Pakistan. He described the decision as a serious strategic mistake, pointing to Pakistan’s long-standing connections with terrorism and its increasing financial dependence on China.

Rubin expressed his concerns in two separate opinion pieces published by the American Enterprise Institute and The Washington Examiner. His commentary followed the IMF’s decision to release the first $1 billion installment of a $7 billion loan package to Pakistan. The move came amid heightened tensions between India and Pakistan following a deadly terror attack in Pahalgam that left 26 people dead.

He argued that providing funds to a government aligned with terrorism and closely tied to China went beyond a simple bailout, claiming it was a direct challenge to U.S. foreign policy and a rebuke of President Trump. Rubin suggested the IMF’s decision undermines American interests by enabling China’s broader strategic goals. He emphasized Pakistan’s subservience to China, citing the $40 billion debt it has accumulated through the China-Pakistan Economic Corridor under the Belt and Road Initiative.

According to Rubin, IMF support in this context effectively props up China’s geopolitical ambitions. “By sending money to Pakistan, the IMF is also bailing out China,” he wrote. India also raised significant objections during the IMF board meeting. Indian representatives warned of the potential misuse of the funds for sponsoring cross-border terrorism and highlighted Pakistan’s history of frequent borrowing from the IMF—receiving funds in 28 out of the past 35 years.

Rubin condemned the timing of the bailout, especially after a recent terror attack by Pakistan-based militants. He noted that Pakistani military officials even attended the funerals of the attackers in uniform, further straining regional tensions. Rubin urged the Trump administration to use its financial influence to prevent such decisions, referencing a recent executive order calling for a review of U.S. funding to international bodies. He concluded by warning that regimes supporting terrorism rarely act in the best interests of their own people.

Disclaimer: This image is taken from ANI.