By Anjali Sharma
WASHINGTON – India on Saturday has strongly criticized the Asian Development Bank’s approval of an $800 million financing package for Pakistan, voiced erious concerns about potential misuse of development funds for military expenditure and raising questions about Pakistan’s commitment to economic reforms.
India has conveyed deep reservations to the ADB regarding Pakistan’s deteriorating fiscal performance, declining tax revenues, and the suspected diversion of international development funds toward defence spending rather than developmental priorities.
The ADB approved the package under its Improved Resource Mobilization and Utilization Reform Program – Subprogram 2, which includes a $300 million policy-based loan and the bank’s first-ever policy-based guarantee of up to $500 million.
It noted that Pakistan, a founding member of the ADB, has received over $52 billion in loans, grants, and other financial assistance from the bank since 1966.
India questioned the efficacy of ADB and IMF programs, pointed out that Pakistan has approached the International Monetary Fund for its 24th bailout despite decades of institutional support.
India argued the track record casts serious doubt on the design and implementation of such programs by Pakistani authorities.
IMF approved a $1 billion disbursement under the Extended Fund Facility raised total payouts under the programme to $2.1 billion.
The IMF cleared $1.4 billion under the Resilience and Sustainability Facility aimed to help Pakistan address climate-related vulnerabilities.
