NEW DELHI: India is set to oppose the World Bank’s proposed $20 billion lending programme for Pakistan, expected to be reviewed next month, citing concerns that Islamabad has previously diverted international aid for military purposes rather than development, a senior government official said.
“Multilateral assistance is meant to drive poverty alleviation and developmental outcomes. But Pakistan’s track record shows repeated misuse of such aid for acquiring arms and bolstering military capacity,” the official added.
The funding under scrutiny is part of the World Bank’s Country Partnership Framework, agreed in January this year, and is intended to support Pakistan’s initiatives in clean energy, climate resilience, and other development goals over a ten-year period starting in 2026.
India had recently raised similar objections during deliberations over a $2.3 billion International Monetary Fund (IMF) funding package to Pakistan.
Despite India’s lobbying – both directly with IMF Managing Director Kristalina Georgieva and with representatives of IMF board member countries – the funding was approved earlier this month.
New Delhi presented documentary evidence, including images of senior Pakistani military officials attending funerals of designated terrorists, and statistical data showing a sharp rise in arms procurement during years when Pakistan received IMF support.
Finance Minister Nirmala Sitharaman was directly involved in the outreach, speaking to Georgieva and several board ministers.
Indian embassy officials also conveyed India’s concerns to key countries, including the United States.
Although the IMF extended the assistance, India’s efforts contributed to the imposition of 11 stringent structural benchmarks by the Fund, spanning fiscal discipline, governance, social spending, monetary and financial policies, energy sector reforms, trade, and deregulation.
India abstained from voting
India abstained from voting, as the IMF charter does not permit negative votes on such disbursements.
“India has no objection to development assistance in principle. But in the context of escalating tensions on the border and Pakistan’s consistent history of using such funds for non-civilian purposes, this was an ill-timed decision,” the official said.
Public data shows that Pakistan allocates nearly 18 per cent of its general budget to “defence affairs and services”-significantly higher than the average 10–14 per cent in other conflict-affected nations.
Between 1980 and 2023, Pakistan’s arms imports surged by over 20 per cent in years it received IMF support, compared with years it did not.
India’s concerns have intensified following the April 22 terror attack in Pahalgam, which left 26 civilians dead.
Officials say Pakistan continues to allow terror groups to operate from its soil and has repeatedly failed to honour global commitments to curb cross-border terrorism.
New Delhi is expected to present its objections at the World Bank’s next board review of the Pakistan funding proposal, continuing its push to hold Islamabad accountable for the use of international aid.
