India opposes ADB's $800 million aid to Pakistan, flags misuse concerns

India has raised strong objections to ADB's financial aid to Pakistan, citing concerns over cross-border terrorism, high defence spend, weak reforms, and governance risks

India has vehemently opposed Asian Development Bank’s (ADB’s) financial assistance of $800 million to Pakistan, raising concerns about potential misuse of the funds, sources said.

 

At a recent Board meeting of the ADB, New Delhi abstained from voting for assistance to Pakistan.

 

Indian officials cautioned the ADB on Pakistan’s increasing defence expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms.

 

ADB on Tuesday approved an $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan.

 

“Pakistan has made significant progress in improving macroeconomic conditions,” said ADB country director for the