India Seeks ADB to Cut Pakistan Funding Amid Pahalgam Aftermath

In a significant diplomatic move, India has requested the Asian Development Bank to reconsider its funding policies toward Pakistan. This demand came from Finance Minister Nirmala Sitharaman during a meeting with ADB President Masato Kanda at the 58th ADB Annual Meeting in Milan, Italy.

The call for action comes in the wake of escalated tensions between India and Pakistan, following a tragic terrorist attack on April 22 in Pahalgam, Jammu and Kashmir, that resulted in the deaths of 26 individuals, most of whom were tourists. In response, India has already downgraded diplomatic relations and suspended the Indus Waters Treaty of 1960, a strategic move likely to impact Pakistan's water resources over time.

Apart from seeking a reduction in financial aid to Pakistan, India is also considering approaching the Financial Action Task Force to place Pakistan on its grey list. Additionally, during her interaction in Milan, Sitharaman highlighted India's focus on economic development through private sector initiatives and strategic policies, inviting ADB to pilot innovative financing models in the country.

(With inputs from agencies.)