India ‘vehemently opposed’ ADB aid to Pakistan.

• Indian government strongly opposes the Asian Development Bank’s decision to provide additional funding to Pakistan.

• The government argues that Pakistan’s increased military spending cannot be fully explained through domestic resource mobilisation.

• India expects the ADB’s management to ring-fence the ADB financing to prevent misuse.

• The ADB approved funding of $800 million to Pakistan under its Resource Mobilisation Reform Programme.

• India highlighted Pakistan’s tax collection as a percentage of GDP fell from 13% in 2017-18 to 9.2% in 2022-23, but noted a significant increase in Pakistan’s defence spending.

• India is also sending a dossier to the Financial Action Task Force (FATF) to re-include Pakistan on the ‘grey list’ of countries requiring greater supervision.