Pakistan Dialled India, Backed Off Strikes; US Put IMF Loan Condition: What Led To The Ceasefire

SOURCE ; NEW18

Last Updated:May 10, 2025, 20:48 IST

The ceasefire between India and Pakistan was widely welcomed by global leaders, as tensions escalated due to Pakistan’s unprovoked attacks on military and civilian assets.

After several days of artillery, drone and missile strikes, India and Pakistan have formally agreed to a ceasefire, capping a tumultuous week during which India targeted terror camps in Pakistan through ‘Operation Sindoor’ and Pakistan launched brazen attacks on civilians.

India and Pakistan agreed on a ceasefire after the former unleashed decisive final strikes on Pakistani airbases that dealt a heavy blow to Pakistan’s Air Force assets. Both sides came to an agreement after Pakistan’s Director General of Military Operations (DGMO) reached out to his Indian counterpart, sources told News18.

During the talks, Pakistan explicitly stated it would not carry out any further strikes and formally requested a ceasefire, sources added. The DGMOs of both countries are expected to hold further talks on May 12.

America’s Role In India-Pakistan Ceasefire

Foreign Secretary Vikram Misri confirmed that India had reached a ceasefire agreement with Pakistan following talks and all military action was halted. This came after an unexpected announcement from US President Donald Trump, who said the ceasefire was reached “in a long night of talks mediated by the United States”.

However, the government said an understanding was reached between the two countries in direct talks. Sources said the US had no direct role in the negotiations except for engaging with the top leadership of both countries.

However, the Trump administration did play a role in the de-escalation of hostilities by placing direct pressure on Pakistan, linking the provisional release of a $1 billion International Monetary Fund (IMF) loan to immediate acceptance of the ceasefire, with the remainder contingent on full compliance, according to sources.

The IMF decided in favour of a $1 billion bailout for Pakistan, despite India showing strong resistance and abstaining from the vote. India highlighted how Pakistan has been a defaulter and that these funds have never been used for the development and upliftment of the people of Pakistan and, instead, have been diverted to terror funding.

Indus Waters Treaty Will Remain In Abeyance

Meanwhile, the ceasefire agreement did not come with pre-conditions or post-conditions, which means that the Indus Waters Treaty will remain in abeyance. India will not share any hydrological information with Pakistan and will proceed with water infrastructure projects on the three northern rivers, as planned after the suspension.

Additionally, the US has formally acknowledged India’s revised war doctrine, under which any future terrorist attack will be treated as an Act of War. This would mean that an armed attack or use of force that threatens the sovereignty or territorial integrity of a state or the safety of its people would be allowed.

Tensions between India and Pakistan soared significantly after the Indian armed forces on Wednesday conducted precision strikes targeting terror launchpads in Pakistan and Pakistan-occupied Kashmir (PoK) in response to the April 22 Pahalgam attack that had cross-border linkages. India launched airstrikes on terror camps in Pakistan under ‘Operation Sindoor’ and bombed key military air bases in major Pakistani cities.

First Published:

May 10, 2025, 20:20 IST