New Delhi— India has raised strong objections to an $800 million aid package being considered for Pakistan by the Asian Development Bank (ADB), citing concerns over potential misuse of funds amid Pakistan’s increasing defense spending and worsening fiscal health.
According to official sources, India is alarmed by Pakistan’s growing military influence over economic policymaking. The country’s army now leads the Special Investment Facilitation Council, effectively giving it control over economic decisions—a shift India warns could lead to policy reversals and poor implementation of reforms.
Despite a deepening economic crisis—marked by plummeting foreign exchange reserves, high inflation, and a declining tax-to-GDP ratio—Pakistan has increased its defense budget. India fears that ADB funds could be diverted to military purposes rather than essential economic reforms.
“Pakistan has a poor track record of adhering to reform conditions tied to international aid,” an official noted. India has pointed to recent purchases of fighter jets from China and extensive drone use following Operation Sindoor as signs of rising military expenditure.
India also highlighted that Pakistan has approached the International Monetary Fund (IMF) for a 24th bailout—further evidence, it says, of the country’s inability to maintain long-term economic stability despite past assistance from institutions like the ADB and IMF.
In addition to economic concerns, India cited Pakistan’s continued support for cross-border terrorism, warning that regional security remains under threat. It also criticized Islamabad’s inadequate implementation of Financial Action Task Force (FATF) mandates, especially regarding terror financing and asset seizure of UN-designated terrorist groups.
India’s objections underscore broader geopolitical tensions and the growing scrutiny over international aid directed to states with unstable governance and unresolved security concerns. (Source: IANS)
