Finance Ministry Prepares Diplomatic Push Against Multilateral Loans to Pakistan Ahead of IMF Board Meet
The Government of India is reportedly preparing to mount diplomatic pressure on major multilateral financial institutions — including the World Bank, Asian Development Bank (ADB), and the International Monetary Fund (IMF) — urging them to significantly curtail or slash ongoing financial support to Pakistan. Sources familiar with the matter revealed that the Indian Ministry of Finance is expected to engage directly with these institutions in the coming days, highlighting serious concerns regarding the alleged diversion of funds and Pakistan’s failure to ensure fiscal accountability. The move comes in the wake of growing regional instability and follows a series of deadly terrorist attacks allegedly supported by Pakistani-based groups.
Highlights:
India to engage World Bank, ADB, and IMF over fund disbursal to Pakistan.
Concern over alleged misuse and diversion of multilateral funds by Pakistan.
Upcoming diplomatic discussions expected before the IMF board meeting on May 9.
ADB and World Bank Have Committed Over $93 Billion to Pakistan Projects as of April 2025
As per latest available data, ADB has committed 764 public sector projects to Pakistan, including loans, grants, and technical assistance, aggregating $43.4 billion. Notably, in October 2024, the ADB approved a $500 million package for climate resilience and disaster risk reduction efforts in Pakistan. Meanwhile, the World Bank remains one of the largest lenders, having committed a staggering $49.66 billion across 365 projects. In January 2025, the World Bank entered a fresh $20 billion financing agreement with Pakistan, aimed at tackling climate change, promoting private sector growth, and enhancing service delivery. Some of the key World Bank-backed initiatives include the Dasu Hydropower Project, Khyber Pakhtunkhwa Rural Accessibility Project, and social protection programs.
Highlights:
ADB total assistance to Pakistan: $43.4 billion across 764 projects.
World Bank commitments: $49.66 billion for 365 development projects.
January 2025 agreement includes $20 billion for climate and infrastructure.
India Raises Concerns Over Pakistan’s Use of IMF Bailout Funds Amid Escalating Border Tensions
In addition to ADB and World Bank funding, Pakistan remains under a $7 billion bailout package from the IMF, granted to avert a full-blown balance-of-payments crisis. The IMF program mandates Pakistan to broaden its tax base, cut subsidies, and stabilize its foreign exchange reserves. However, Indian policymakers are expected to raise strong objections to continued disbursal of IMF tranches, alleging the potential misallocation of funds toward non-civilian or destabilizing activities. India’s concerns are likely to be formally voiced during the IMF executive board meeting scheduled for May 9, where future assistance to Pakistan is on the agenda.
Prominent opposition leader Jairam Ramesh of the Congress Party also emphasized that India must vocally oppose any renewed IMF assistance to Islamabad, especially considering the current national security scenario and increasing cross-border violence.
Highlights:
Pakistan is under a $7 billion IMF bailout with structural reform conditions.
India to oppose continued IMF aid during May 9 board meeting.
Jairam Ramesh calls for strong diplomatic opposition to IMF support.
India Cites April 22 Terror Attack, Suspends Indus Water Treaty in Diplomatic Escalation
Tensions between India and Pakistan have sharply escalated following the April 22 terrorist attack in Pahalgam, Jammu and Kashmir, where five militants killed 26 civilians. India has since taken the unprecedented step of suspending the Indus Waters Treaty, a landmark bilateral agreement signed in 1960 under World Bank mediation to share water from six rivers of the Indus basin. The suspension of the treaty is widely seen as a geopolitical signal of India’s hardened stance and a response to what it perceives as Pakistan’s ongoing support for cross-border militancy. The terror incident and water treaty suspension are expected to be cited by Indian officials in upcoming meetings with multilateral agencies as evidence of Pakistan’s destabilizing activities.
Highlights:
April 22 terror attack killed 26 civilians in Pahalgam.
India suspends Indus Waters Treaty amid heightened tensions.
Treaty suspension adds weight to India’s global campaign to cut Pakistan’s funding.
