INTERNATIONAL: India Slams ADB Loan to Pakistan, Cites Terror Risk
Diplomatic Pushback Over Development Funding
India has raised strong objections to the Asian Development Bank’s (ADB) decision to approve an \$800 million loan to Pakistan on June 3. The Indian government expressed apprehension that the financial assistance could be diverted towards military activities rather than development initiatives.
Concerns of Misuse Amid Heightened Tensions
Citing ongoing hostilities and concerns over cross-border terrorism, Indian officials cautioned that the funding could potentially embolden Pakistan’s military agenda. The timing of the loan has raised particular concern, given its approval shortly after heightened tensions following the Pahalgam terror attack and India’s subsequent Operation Sindoor.
India’s Earlier Opposition to IMF Lending
This is not the first instance of Indian resistance to international financial aid for Pakistan. Earlier, New Delhi had objected to the International Monetary Fund (IMF) disbursing a \$1 billion tranche under its Extended Fund Facility (EFF) to Islamabad. Indian authorities contended that such funds may be indirectly used to support activities detrimental to regional peace and security.
India’s Strategic Messaging
India’s consistent diplomatic efforts highlight a strategic push to bring global attention to what it views as Pakistan’s misuse of external financial aid. Officials assert that without rigorous accountability mechanisms, development loans may inadvertently contribute to destabilizing acts, undermining the very objectives they aim to support.
Regional Implications
The controversy underscores growing geopolitical and economic friction between India and Pakistan. It also places multilateral lending institutions like the ADB and IMF under scrutiny for their oversight and due diligence practices when disbursing funds to politically sensitive regions.
Key Facts at a Glance
| Loan Agency | Approved Amount | Recipient | India’s Concern |
|---|---|---|---|
| Asian Development Bank (ADB) | \$800 million | Pakistan | Potential misuse for military expenditure |
| International Monetary Fund (IMF) | \$1 billion (earlier) | Pakistan | May indirectly fund terror-linked activities |
Broader Diplomatic Narrative
Indian diplomats continue to engage with stakeholders at the ADB, IMF, and allied governments, urging a stricter review of aid recipients’ track records on peace, transparency, and financial integrity.