India has requested the International Monetary Fund (IMF) to review loans disbursed to Pakistan, according to an Indian government source who spoke to Reuters on Friday. The request comes as tensions between the nuclear-armed neighbors have escalated following a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK).

The attack on Hindu tourists in IIOJK last week killed 26 people, triggering concerns that the crisis could potentially escalate into a military conflict. India has identified three attackers, claiming two are Pakistani nationals, while Islamabad has denied any involvement and called for a neutral investigation.

In response to the attack, India suspended a critical river water sharing treaty, and both countries have closed their airspace to each other’s airlines.

Pakistan secured a $7 billion bailout program from the IMF last year and was granted an additional $1.3 billion climate resilience loan in March. These funds are critical to Pakistan’s $350 billion economy, which the country says has stabilized under the bailout that helped avert a default threat.

The Indian government source did not provide details about the specific concerns raised with the IMF regarding the loans to Pakistan. The IMF and India’s finance ministry have not yet responded to requests for comment.

Khurram Schehzad, advisor to Pakistan’s finance minister, maintained that the IMF program remains “well on track.” He told Reuters, “The latest review has been done well and we are completely on track,” adding that Pakistan had conducted about 70 productive meetings during recent spring meetings with financial institutions in Washington, with high interest in investing in and supporting Pakistan’s economic turnaround.

The IMF Executive Board is scheduled to discuss Pakistan’s program on May 9.