India plans to oppose a proposed 20 billion World Bank aid package for Pakistan, citing the country’s history of diverting international financial assistance toward military spending instead of development. According to a senior Indian government official, New Delhi believes that aid meant for economic upliftment and poverty reduction has often been misused by Islamabad to strengthen its defense capabilities and fund terrorist activities. The World Bank funding, framed under the Country Partnership Framework for clean energy and climate projects, is viewed by India as a cover for more military-oriented expenditures.
India’s concerns echo its recent strong stance against the IMF’s 2.3 billion bailout to Pakistan, where New Delhi submitted evidence of misuse, including spikes in arms imports and top generals participating in terrorist funerals. Indian Finance Minister Nirmala Sitharaman personally raised the issue with IMF leadership, prompting the addition of 11 strict conditions to the bailout deal. Although the IMF disbursement went ahead, India succeeded in spotlighting Pakistan’s misuse of foreign aid on global platforms.
Public data supports India’s claim, showing that Pakistan allocates around 18% of its general budget to defense, significantly more than other conflict-affected nations. India also attributes rising tensions—particularly after the April 22 Pahalgam terror attack that killed 26 civilians—to Pakistan’s inaction against terror groups and continued military spending. India insists that development aid should not reinforce militarization, especially amid ongoing border tensions and Islamabad’s unwillingness to crack down on terrorism.
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