India Urges ADB to Cut Funds to Pakistan After Pahalgam Terror Attack
In a diplomatic escalation following the Pahalgam terror attack, Finance Minister Nirmala Sitharaman has urged the Asian Development Bank to cut funding to Pakistan, government sources said.
Finance Minister Nirmala Sitharaman met with Asian Development Bank (ADB) President Masatsugu Asakawa and demanded that the multilateral lender reduce financial support to Pakistan. The move comes as part of India’s broader strategy to isolate Islamabad globally following the April 22 Pahalgam attack that killed 26, mostly tourists.
Sources confirmed that Sitharaman reiterated the same demand during her meeting with Italian Finance Minister Giancarlo Giorgetti. The push targets Pakistan’s reliance on ADB funds to support key sectors such as energy, infrastructure, and climate resilience.
India is also expected to raise concerns over the IMF’s $7 billion bailout to Pakistan, approved in July 2024. New Delhi argues that without transparency and stricter oversight, such funding may indirectly fuel cross-border terrorism.
“We must ensure international funds are not misused in ways that compromise regional stability,” a senior government source said.
India is reportedly working with European allies to advocate for Pakistan’s re-listing on the Financial Action Task Force (FATF) grey list. The designation could hinder Pakistan’s access to international financial markets and foreign investment.
The move is seen as an extension of India’s financial counter-terrorism campaign aimed at choking funding routes and applying diplomatic pressure.
The financial steps come amid sweeping punitive measures already in place. India has downgraded diplomatic ties with Pakistan, suspended bilateral trade, cancelled visas for Pakistani nationals, and closed the land border. Pakistani carriers have been banned from Indian airspace, and the Indus Waters Treaty has been suspended.
In a high-level security meeting, Prime Minister Narendra Modi granted full operational freedom to the armed forces, promising a “fitting response” to the terror strike.
The April 22 attack in Jammu and Kashmir’s Pahalgam was carried out by Pakistan-based terrorists and resulted in 26 deaths. It has reignited tensions between the two nuclear-armed neighbours, with India accusing Pakistan of continuing to harbour terrorist groups.
Russia and several other global leaders have expressed solidarity with India and condemned the attack.
