Pakistan secures $800 million loan from Asian Development Bank despite India's objections
PTC Web Desk: In a significant financial move, Asian Development Bank (ADB) has approved a $800 million loan package for Pakistan, drawing sharp criticism from India. The financial assistance comes just a month after Pakistan secured a $1 billion bailout from the International Monetary Fund (IMF) to stabilize its struggling economy.
According to official sources, India raised strong objections against the ADB's decision, pointing to Pakistan's track record of terror financing and potential misuse of international aid. New Delhi expressed concerns that the funding might be diverted towards defense and military expenditure rather than being used for developmental purposes.
Indian officials further highlighted Pakistan’s declining economic indicators, specifically noting a sharp fall in tax revenue, which dropped from 13% of GDP in 2018 to just 9.2% in 2023. This, combined with a continued rise in military spending, has raised questions about the country’s fiscal priorities and credibility in the eyes of international lenders.
India has repeatedly warned that such international financial assistance could indirectly support non-developmental activities, particularly defense-related expenditures, rather than essential infrastructure or social programs. Officials emphasised the need for accountability and monitoring in how such funds are allocated and utilised by Pakistan.
- With inputs from agencies
