Senior government officials told CNBC-TV18
that India will seek a major cut in multilateral funding to Pakistan.
The urgency in India’s diplomatic posture comes days after heavily armed terrorists launched a deadly strike on tourists in Jammu and Kashmir’s Pahalgam region. The ambush has reignited concerns over Pakistan’s role in harbouring extremist elements.India’s push comes against the backdrop of significant international monetary support that Islamabad receives from multilateral agencies. The Asian Development Bank (ADB) has disbursed $43.4 billion to Pakistan through 764 public sector loans and grants, spanning infrastructure, energy, and social welfare projects.
The World Bank has committed $49.7 billion across 365 projects, with a major $20 billion agreement signed as recently as January 2025. Pakistan is also currently under a $7 billion IMF bailout, which is tied to key structural reforms aimed at increasing revenue and ensuring macroeconomic stability.
However, India argues that a closer review of fund utilisation is necessary, especially as some of these funds could be indirectly freeing up domestic resources that support activities counterproductive to regional stability.
India is expected to raise this issue during the upcoming multilateral meetings and through back-channel discussions with key shareholders of these financial institutions. The aim is not only to question current disbursements but also to push for tighter conditionalities and transparency in fund usage.
This development adds another layer to India’s evolving strategy: leveraging financial levers, not just military and diplomatic ones, in its counter-terrorism toolkit.
