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State of Tripura
Sunday, June 29, 2025

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India cautions ADB regarding possibility of misuse of its resources by Pakistan –

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India has cautioned the Asian Development Bank regarding the possibility of misuse of its resources in extending any form of financial support to Pakistan. Sources said that New Delhi has shared deep concerns regarding the potential misuse of ADB resources, particularly in light of Islamabad’s increasing defense expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms. India highlighted that Pakistan’s tax collection as a share of GDP declined from 13.0 per cent in Financial Year 2018 to 9.2 per cent in Financial Year 2023. New Delhi also expressed strong reservations about Pakistan’s existing governance system, which poses a continuing severe threat to regional peace and security. Sources added that the progress on implementation of the most critical Financial Action Task Force action items relating to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets, is highly unsatisfactory.

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