Priyanka Tiwari
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Suspense crime, Digital Desk : Recently, the Indian Finance Minister has expressed interest to meet with the World Bank, ADB, and IMF to apply pressure on Pakistan's ongoing and prospective financing. According to government sources, India intends to emphasize the risk of fund misappropriation and aim for greater financial disregard.
Supporting Pakistan Multilaterally: A Brief Overview
As of April 2025, ADB had disbursed 764 public sector loans, grants and technical assistance projects in Pakistan, amounting to 43.4 billion dollars. In October 2024 ADB also disbursed a 500 million dollars’ worth loan for climate resilience and disaster risk reduction.
As of January 2025, World Bank has disbursed $49.6 billion for 365 projects in Pakistan, this includes climate action as well as rural infrastructure, social protection programs and Dasu Hydropower project. A major $20 billion agreement was signed earlier this year focusing on development priorities and fostering economic growth.
Besides that, Pakistan has an active $7 billion IMF bailout program that is conditioned with certain reforms like increasing state revenue and controlling exorbitant fiscal deficits.
Political and Diplomatic Setting
The tensions between India and Pakistan further intensified after the April 22 terrorist attack near Pahalgam that killed 26 people, including a number of civilians. In retaliation, India blocked access to the Indus River by suspending the Treaty of Indus Waters, a multi-purpose water sharing treaty.
Jairam Ramesh, a Congressman from the Congress party, went further and solicited for India to block any efforts for granting Pakistan additional aid from the International Monetary Fund, telling the government to spell out its stance loud and clear at the IMF board meeting slated for May 9.
India's Position for the Foreseeable Future
It is expected that India’s diplomatic actions will target the explaining of India’s interest regarding the International Fund’s resources and the allocation of funds to avoid any politically motivated development programs. In India’s view there should be more political activism among international organizations of support, or within the framework of which provides this aid.
