The finance ministry is expected to take up the issue of funding by multilateral financial institutions to Pakistan in the next few days. Officials are expected to meet with the World Bank, Asian Development Bank and International Monetary Fund on loans to Pakistan and press for a substantial cut in the amount citing diversion of funds, said a source privy to the developments.
As on April 2025, ADB has committed 764 public sector loans, grants and technical assistance amounting to $43.4 billion to Pakistan. In October 2024, ADB approved a $500 million to support climate change and disaster risk reduction.
The World Bank in January this year entered into an agreement with Pakistan with a $20 bn loan for development issues like the impact of climate change, boosting private sector growth. The World Bank has committed $49,663 mn to Pakistan for 365 projects.
Some of the projects include the Khyber Pakhtunkhwa Rural Accessibility Project , Dasu Hydropower Project, Social protection programs and so on. Pakistan is also under a $7 bn IMF bailout program, which requires the Pakistan government to boost government revenues.
Jairam Ramesh of the Congress party had said that India must oppose any fresh IMF assistance to Pakistan. And that it expected India to strongly oppose any possible International Monetary Fund assistance to Pakistan in the board meeting on May 9.
On 22 April, five terrorists killed 26 people near Pahalgam in Jammu and Kashmir. India has since suspended the landmark water-sharing Indus Water Treaty with Pakistan.
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