India Urges Italy to Halt Financial Support to Pakistan Amid Rising Tensions After Pahalgam Attack

India has formally requested Italy to discontinue its financial aid to Pakistan, intensifying diplomatic pressure on Islamabad following the deadly terrorist attack in Jammu and Kashmir’s Pahalgam.

According to sources cited by ANI, Finance Minister Nirmala Sitharaman conveyed India’s position to her Italian counterpart, Giancarlo Giorgetti, during discussions held alongside the 58th Annual Meeting of the Asian Development Bank (ADB) in Milan.

The Italian Development Cooperation is recognized by the United Nations Development Programme (UNDP) as a significant partner, actively supporting various projects in Pakistan. The UNDP’s official website confirms Italy’s involvement in numerous major initiatives in Pakistan.

In addition to approaching Italy, India has also asked the Asian Development Bank (ADB) to reconsider its financial assistance to Pakistan. These actions follow the terror attack on April 22, 2025, in Pahalgam, where terrorists targeted tourists, resulting in 26 fatalities and multiple injuries.

Since the incident, India has significantly scaled down diplomatic engagement with Pakistan. In a notable move, India suspended the 1960 Indus Waters Treaty, a decision likely to have severe long-term implications for Pakistan’s water supply. Further escalating measures, sources informed ANI that India plans to request the Financial Action Task Force (FATF) to place Pakistan on its grey list.

Minister Sitharaman is leading an official delegation from India’s Department of Economic Affairs to the ADB’s 58th Annual Meeting, taking place in Milan from May 4–7. According to a statement from the Ministry of Finance, Sitharaman will participate in key sessions, including the Governors’ Business and Plenary Sessions, and will speak on a panel addressing “Cross-Border Collaboration for Future Resilience.”