Centre has stepped up diplomatic pressure on Pakistan in the wake of the Pahalgam terror attack, urging global financial institutions to halt funding to Islamabad. According to an NDTV report, India has formally asked the Asian Development Bank (ADB) to discontinue financial support to Pakistan. The request was raised by Finance Minister Nirmala Sitharaman during a recent meeting with ADB chief Masato Kanda.
The government is also seeking to rally support from European allies, with Sitharaman reportedly discussing the matter with her Italian counterpart and engaging other European nations, the report further said. At the same time, India is lobbying for Pakistan’s re-inclusion on the Financial Action Task Force (FATF) grey list, a designation that can limit a country’s access to international finance.
India has also called on the International Monetary Fund (IMF) to review its disbursements to Pakistan. A Reuters report quoted a source saying that the appeal is part of a broader diplomatic push following the attack in Kashmir that left 26 people dead. The attack has significantly strained relations between the neighbouring nations.
In retaliation, India suspended a crucial river water-sharing treaty and both countries have shut down airspace to each other’s airlines. Pakistan, which secured a $7 billion IMF bailout last year and a $1.3 billion climate resilience loan in March, insists that its economy has stabilised under the programme.
Meanwhile, the rising tensions have drawn global concern. US Vice President JD Vance last week urged Pakistan to cooperate with India in tracking down those responsible for the Kashmir attack, emphasising the need for de-escalation to avoid further conflict in the region.