India to Oppose World Bank Funding to Pakistan Next Month
India’s Stance on World Bank Loan to Pakistan
India is expected to oppose the World Bank’s upcoming funding to Pakistan, following a similar stance taken against the International Monetary Fund (IMF) in the past. According to a government source, India argues that Islamabad has historically used such funds for military purposes, including the procurement of arms and ammunition.
World Bank’s Loan Review to Pakistan
The World Bank is set to review its USD 20 billion lending to Pakistan under the Country Partnership Framework, which was agreed upon in January 2024. The funds are intended for areas such as clean energy and climate resilience over the next decade, starting in 2026.
India’s Opposition and Arguments
India has expressed concerns over Pakistan’s use of financial assistance for military purposes. The government has presented evidence, including the presence of senior Pakistani military officials at the funeral of designated terrorists, to support its stance. Additionally, data shows that Pakistan’s arms imports have increased significantly during periods of IMF funding.
India’s Diplomatic Efforts
India has lobbied with IMF officials, including Chief Kristalina Georgiev, and members of the IMF board to oppose the extension of assistance to Pakistan. The Indian Embassy has also presented the case to powerful nations like the United States. However, the World Bank’s agenda was already circulated to all members, and it is up to them to decide on the funding.
IMF’s Conditions and India’s Abstention
Despite India’s efforts, the IMF has imposed 11 strict conditions on Pakistan, covering fiscal, governance, social, monetary, and financial parameters, as well as metrics in the energy sector and trade, investment policy, and deregulation. India abstained from voting, as the IMF charter does not allow for a negative vote on such matters.
Historical Context and Concerns
India argues that Pakistan’s spending on defense, which averages around 18% of its general budget, is higher than the 10-14% spent by conflict-affected countries. Furthermore, Pakistan’s arms imports have risen significantly during periods of IMF funding compared to times when it did not receive such assistance.
Current Tensions Between India and Pakistan
Tensions have escalated following the terror attack in Pahalgam on April 22, which killed 26 civilians. India believes that Pakistan has failed to act on terror originating from its territory and has been diverting funds to buy arms and ammunition.
Conclusion
India’s opposition to the World Bank funding to Pakistan is rooted in concerns over the misuse of funds for military purposes and the current border tensions. While India supports development aid, it believes that the timing and context of the funding are critical, especially given the recent security issues.