INTERNATIONAL: Pahalgam Attack: India Urges ADB to Cut Pakistan Funding
India’s Demand at ADB Meeting
At the 58th Annual Meeting of the Asian Development Bank (Asian Development Bank) in Milan (Milan), Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) urged ADB President Masato Kanda (Masato Kanda) to reduce financial aid to Pakistan. This demand, reported by ANI citing sources, was made amid heightened India-Pakistan tensions following the Pahalgam terror attack. The meeting, held from May 4 to 7, 2025, also covered other key economic topics.
Aftermath of Pahalgam Attack
On April 22, 2025, a terror attack in Pahalgam, Jammu and Kashmir, claimed 26 lives, mostly tourists, and injured several others. The attack, linked to Pakistan-based terror groups, prompted India to drastically scale back diplomatic ties with Pakistan. This incident has been a major driver of India’s punitive measures against Islamabad.
Diplomatic and Economic Measures
India plans to push the Financial Action Task Force (Financial Action Task Force) to reinstate Pakistan on its grey list, escalating economic pressure. Additionally, India has suspended the 1960 Indus Waters Treaty (Indus Waters Treaty), a move expected to gradually reduce Pakistan’s water resources. These steps aim to curb Pakistan’s financial and strategic capabilities.
India’s Economic Reforms Highlighted
Sitharaman emphasized India’s focus on private sector-led growth, driven by reforms like the Insolvency and Bankruptcy Code, corporate tax cuts, GST implementation, GatiShakti National Master Plan, and Startup India. These initiatives have created a conducive environment for business, positioning India as a global economic hub. She highlighted opportunities for ADB to pilot innovative financing models in India.
ADB’s Support for India
ADB President Kanda expressed full support for India’s development goals, aligning with Prime Minister Narendra Modi’s (Narendra Modi) vision of a Viksit Bharat by 2047. The ADB is keen to collaborate on projects that advance India’s economic priorities. This endorsement strengthens India’s position in global financial forums.
India’s Delegation
Sitharaman led a delegation from the Department of Economic Affairs, Ministry of Finance, to the ADB meeting. The delegation engaged in discussions to further India’s economic interests and explore partnerships with the ADB. The annual meeting provided a platform to showcase India’s reform-driven growth story.