Pakistan is facing a severe economic crisis and continues to receive financial assistance from international institutions. However, india has expressed concerns about how these funds are being used. india fears that the funds are being diverted for dangerous purposes such as military expansion and support for terrorism. pakistan has been facing a severe economic crisis for the past few years. High inflation, shrinking foreign exchange reserves, and persistent political instability have worsened the situation. Despite this weak situation, pakistan continues to receive financial assistance from several global institutions such as the international Monetary Fund (IMF), the World bank, and the Asian Development bank (ADB). However, doubts are being raised about the actual use of these funds.
India has raised serious concerns about how pakistan uses the international financial assistance it receives. The central question being raised is whether these funds are truly being used for public welfare, economic reforms, and infrastructure development - or are they being diverted to more dangerous purposes such as military expansion and support for terrorism? india has appealed to international bodies to scrutinize the flow and use of this aid very carefully.

Pakistan has benefited from several IMF bailout programs, including a $3 billion standby arrangement approved in July 2023. The World bank continues to support pakistan in sectors such as education, health, and energy. Similarly, the ADB provides funding for infrastructure and transport development. Apart from multilateral institutions, countries such as China, Saudi Arabia, and the United Arab Emirates have also provided bilateral loans and financial assistance to Islamabad. While these funds are intended for structural reforms and poverty alleviation, the results on the ground tell a different story. Many reform efforts funded by global institutions have stalled or been derailed due to corruption and mismanagement. Reports indicate that Pakistan’s powerful military controls a significant share of the economy. In addition, global watchdogs continue to monitor pakistan for its links to extremist groups and terrorist organizations.


Given Pakistan’s controversial role in promoting cross-border terrorism, india has called for stricter assessment and conditionality of any financial assistance provided to the country. india argues that helping a country that is allegedly involved in spreading regional unrest poses a threat to peace and security. As a result, india has urged global lenders to ensure that their funds are not misused and are channeled only towards genuine development goals.
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Sowmiya Sriram

04/05/2025 12:28 PM