Pakistan receives $800 million from ADB despite India’s strong objections over misuse concerns

The Asian Development Bank (ADB) has approved an $800 million loan package for Pakistan, ignoring strong objections from India, which expressed concern over the potential misuse of international financial aid by its neighbour. The funding comes barely a month after Pakistan secured a separate $1 billion loan from the International Monetary Fund (IMF).

According to Indian government officials, New Delhi strongly opposed the ADB’s decision, citing Pakistan’s history of economic mismanagement and terror financing. They argued that Pakistan’s falling tax-to-GDP ratio — from 13% in 2018 to 9.2% in 2023 — coupled with increasing defence spending raises red flags over where the aid money might actually be directed.

India fears that such loans may end up supporting Pakistan’s military infrastructure rather than being used for civilian development. These concerns have become more pronounced in the backdrop of escalating regional tensions and Pakistan’s repeated failure to meet FATF (Financial Action Task Force) transparency benchmarks.

The ADB has not publicly commented on India's objections, but the package is reportedly aimed at structural reforms and infrastructure support in Pakistan’s struggling economy.