India Raises Concerns Over ADB’s $800 Million Aid to Pakistan
India has formally objected to the Asian Development Bank’s recent approval of an $800 million financial aid package to Pakistan, raising alarms over how the funds might be used. According to Indian officials, there is a growing fear that the aid will not contribute to genuine economic recovery but will instead be diverted to non-developmental and potentially destabilizing uses, including defense spending.
India pointed to Pakistan’s deteriorating economic metrics—especially the drastic fall in its tax-to-GDP ratio from 13% in 2018 to 9.2% in 2023. At the same time, Islamabad’s military expenditure has remained high, casting doubt on the country’s fiscal priorities. This trend, India argues, reflects a structural unwillingness to implement meaningful reforms or address deep-rooted economic inefficiencies.
Link Between Aid and Terrorism Support
India also expressed concern that the aid could indirectly embolden Pakistan’s support for cross-border terrorism. The objection follows closely on the heels of the recent Pahalgam terror attack, which claimed the lives of 26 Indian civilians. New Delhi has accused Pakistan of continuing to shelter and facilitate terrorist networks, making any unconditional financial assistance deeply problematic.
According to India, offering substantial external financing to a state repeatedly linked to terror infrastructure without strict safeguards could embolden its strategic misadventures. It emphasized that the international community must not lose sight of Pakistan’s track record when making decisions involving global financial aid.
Call for Strong Oversight by ADB
In its communication with the ADB, India demanded that any assistance to Pakistan be conditioned on stringent accountability and transparent fund utilization. New Delhi has urged the bank to set up oversight mechanisms to track the disbursement of funds and ensure they are used solely for targeted development goals like poverty alleviation, health, and education—not for bolstering Pakistan’s defense budget or perpetuating regional instability.
India’s objections underscore a broader call for responsible lending by multilateral institutions. The concern is not merely economic—it is also a warning against the geopolitical risks of unmonitored financial support to states accused of enabling terrorism.
