India Raises Concerns Over ADB's Loan to Pakistan Amid Military Spending Fears
India strongly opposed the Asian Development Bank's (ADB) decision to grant an $800 million loan to Pakistan, due to the potential misuse of funds for military spending. India highlighted concerns around Pakistan's inadequate tax-to-GDP ratio and lack of macroeconomic reforms, questioning the credit risks involved for ADB.
- Country:
- India
India has raised significant objections to the Asian Development Bank (ADB)'s approval of an $800 million loan to Pakistan, expressing fears it could be diverted to bolster military spending.
Government sources highlighted concerns over Pakistan's current lack of substantial economic reforms, faltering tax-to-GDP ratio, and rising defense budget.
Although the Congress commented on Prime Minister Narendra Modi's influence concerning previous financial discussions, India continues to urge the ADB to safeguard against possible fund misallocation, citing the military's influence over Pakistan's economic affairs as a credible risk factor.
(With inputs from agencies.)
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