India will ask the World Bank and International Monetary Fund to curb funding to Pakistan at appropriate meetings in the coming weeks, a senior official has told Moneycontrol.
“The issue will be raised but at the appropriate forum. The Asian Development Bank is not the right place to speak on these aspects,” the official told Moneycontrol on condition of anonymity on May 6.
A day earlier, responding to reports in a section of media, the finance ministry said Nirmala Sitharaman had not discussed issues related to Pakistan with Asian Development Bank president and her Italian counterpart in Milan, which the finance minister was visiting for an ADB meeting.
“It is clarified that this is not true and has no basis in fact,” the finance ministry said in the statement.
The move to directly approach the WB and IMF is part of India’s efforts to stop Pakistan from using the financial support to promote terror activities, the official said. “There needs to be a review of the funding that is provided to Pakistan,” he official added.
The IMF’s executive board will meet on May 9 to review financing facilities extended to Pakistan. In September 2024, IMF extended a $7 billion financial aid-package to the country, which consists of six reviews over the span of the bailout.
The World Bank has committed up to $50 billion to Pakistan for close to 400 projects, which includes a $20- billion loan signed in January. In March, it had approved a $100-million aid package for financing “climate resilience”. Some of the projects include the Khyber Pakhtunkhwa Rural Accessibility Project , Dasu Hydropower Project and social protection programmes.
After the April 22 Pahalgam terror attack, India has stepped up efforts to economically hurt Pakistan by seeking the help of international institutions to curtail the flow of funds to Islamabad, which is in economic distress, suspending the Indus Waters Treaty and putting a ban on all imports from the country.
Two of the terrorists involved in Pahalgam attack, which left 26 people dead, were Pakistani citizens.