India Opposes ADB's $800 Million Loan to Pak

The IMF Loan to Pakistan Came in the Midst of Operation Sindoor, India's Direct Military Response to the April 22 Terror Strike at Pahalgam

- Rajeev Jayaswal

NEW DELHI: India opposed a move by the Asian Development Bank (ADB) to grant an $800 million loan to Pakistan, citing evidence of Islamabad diverting development funds for military use, and cautioned the bank about impending credit risks, two officials familiar with the matter said.

India shared deep concerns regarding the potential misuse of ADB resources, particularly in light of Pakistan's increasing defense expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms, they added, requesting anonymity.

India's strong opposition to ADB's financial aid to Pakistan came almost a month after New Delhi protested the International Monetary Fund's decision to provide a $2.3 billion bailout package to Islamabad, which saw the IMF imposing about a dozen stringent conditions attached with the credit facility, making diversion of funds almost impossible.

The IMF loan to Pakistan came in the midst of Operation Sindoor, India's direct military response to the April 22 terror strike at Pahalgam in Kashmir that killed 26 civilians in what was the worst attack on civilians since the 26/11 Mumbai strikes.