Is India Pressuring the Asian Development Bank to Halt Financial Aid to Pakistan?
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Synopsis
India's government is intensifying diplomatic efforts against Pakistan following the Pahalgam terror attack. Union Finance Minister Nirmala Sitharaman has requested the Asian Development Bank to cut financial aid to Pakistan while advocating for its inclusion in the FATF grey list. This move highlights India's commitment to countering terrorism and safeguarding national security.
Key Takeaways
- India is urging the ADB to cease financial aid to Pakistan following the Pahalgam attack.
- Efforts are underway to include Pakistan in the FATF grey list to enhance scrutiny.
- The ADB's current support to Pakistan totals $9.13 billion.
- India has enacted several diplomatic responses to the Pahalgam massacre.
- Defence preparations are ongoing amid rising tensions with Pakistan.
New Delhi, May 5 (NationPress) Union Finance Minister Nirmala Sitharaman has addressed the issue surrounding the Pahalgam terror attack and Pakistan's involvement in this heinous act with Asian Development Bank (ADB) president Masato Kanda, as reported on Monday.
The diplomatic efforts against Pakistan have intensified following the tragic events in Pahalgam, with New Delhi urging the ADB to cease its financial assistance to Pakistan.
As per NDTV, citing insider information, FM Sitharaman raised the topic with ADB's chief Kanda during her visit to Milan, Italy, for the 58th Annual Meeting of the Board of Governors of the ADB.
Minister Sitharaman has already engaged in discussions with her Italian counterpart and is making diplomatic overtures with various European countries, according to sources.
The ADB's sovereign portfolio in Pakistan includes 53 loans and 3 grants, amounting to a total of $9.13 billion (as of 2024).
Reports indicate that India is also advocating for Pakistan's entry into the Financial Action Task Force (FATF) grey list and calling for a reassessment of multilateral funding directed towards Islamabad.
This measure targets nations that fall short in combating money laundering or terrorism. Countries placed on the grey list face increased scrutiny, which adversely affects foreign investments and limits their financial avenues.
In response to the April 22 attack that claimed 26 lives in Pahalgam, India has enacted multiple diplomatic measures against Pakistan, which include freezing the Indus water treaty, closing the Attari border, revoking visas for Pakistani nationals, and entirely halting trade, among other actions.
Meanwhile, Defence Secretary Rajesh Kumar Singh met with Prime Minister Narendra Modi on Monday amidst ongoing tensions with Pakistan and preparations regarding the nation’s response to the Pahalgam attack. It is believed that the Defence Secretary provided the Prime Minister with updates on the current security situation and military readiness, particularly concerning the western frontier.
Point of View
The measures taken by India reflect a strong stance against terrorism. The government's efforts to engage with international financial institutions and push for accountability indicate a proactive approach towards national security. These actions are crucial in maintaining regional stability and safeguarding India's interests.
NationPress
11/06/2025
Frequently Asked Questions
What prompted India to urge the ADB to stop funding to Pakistan?
The request was prompted by the Pahalgam terror attack and Pakistan's alleged involvement in the incident, which has led India to reassess its diplomatic strategy.
What is the significance of the FATF grey list?
Being placed on the FATF grey list subjects a country to increased scrutiny regarding its financial systems, particularly concerning money laundering and terrorism financing, which can hinder foreign investments.
How much financial support has the ADB provided to Pakistan?
The ADB's portfolio in Pakistan includes 53 loans and 3 grants, totaling approximately $9.13 billion as of 2024.
What other measures has India taken against Pakistan?
India has implemented several measures, including freezing the Indus water treaty, closing the Attari border, and halting all trade with Pakistan.
What is the role of the Defence Secretary in this context?
The Defence Secretary's role involves briefing the Prime Minister on the current security situation and military preparedness in light of tensions with Pakistan.
