Pak Gets $800 Million From Asian Development Bank Despite India’s Objections, India Highlights Pakistan’s Economic Fragility

New Delhi : The Asian Development Bank (ADB) approved a USD 800 million bailout package for Pakistan despite India’s vehement objections to any form of aid to the neighbouring country over its history of terror financing. The package, approved to improve public financial management, includes a USD 300 million policy-based loan, and a USD 500 million programme-based guarantee. Following the Pahalgam terror attack, India has approached several global lending bodies to expose Pakistan’s support for terrorism and urge them to pause future loan packages.

Government sources told India Today that India had firmly objected to the Asian Development Bank (ADB) offering any financial aid to Pakistan, citing serious concerns about misuse. India also highlighted Pakistan’s economic fragility, with tax revenue dropping significantly from 13% of GDP in 2018 to just 9.2% in 2023 and the rise in its defence spending. India fears that loans from ADB and other international lenders might be diverted toward military expenses instead of development.

India also highlighted Pakistan’s weak governance and the outsized role of its military in economic affairs. India pointed out that the military’s influence remains strong, especially through the Special Investment Facilitation Council. The council was set up in June 2023 to promote and facilitate investment, particularly foreign direct investment.

India also expressed deep concerns over Pakistan’s support for cross-border terrorism and its failure to act on key mandates of the Financial Action Task Force (FATF), including freezing assets of UN-designated terrorist groups. India underlined that these issues not only threaten regional peace but also increase the ADB’s risk exposure.

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