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India to Oppose World Bank’s $20 Billion Lending Package to Pakistan Amid Security Concerns.


India has announced its firm intention to oppose the World Bank’s proposed $20 billion lending package to Pakistan, scheduled for review in June 2025, continuing its diplomatic efforts to financially isolate its neighbor over concerns of misuse of international funds.


Following India’s recent unsuccessful attempt to block a $2.3 billion bailout by the International Monetary Fund (IMF) to Pakistan, the Indian government is now gearing up to contest the World Bank’s funding under the Country Partnership Framework agreed earlier this year. The funds are earmarked for development projects in Pakistan, including clean energy and climate resilience initiatives, spanning a period of ten years starting 2026.


A senior government source emphasized that while India is not opposed to development funding in principle, it objects strongly to the timing and Pakistan’s historical record of diverting such funds for military purposes. “Multilateral agencies’ funding to developing countries are meant for poverty alleviation and development goals, but Pakistan’s track record has been to misuse them for arms procurement and military buildup,” the official said.


India’s opposition is backed by evidence presented to international financial institutions, including data showing a significant rise in Pakistan’s arms imports during years it received IMF disbursements. New Delhi also highlighted Pakistan’s failure to act against terrorism emanating from its soil, citing the presence of senior Pakistani military officials at funerals of alleged terrorists and other intelligence inputs.


In parallel, India is preparing to press for Pakistan’s reinstatement on the Financial Action Task Force (FATF) grey list during the upcoming FATF plenary meeting in June 2025. Pakistan was removed from the grey list in 2022, a move India contests, arguing that Islamabad has not fulfilled the required anti-money laundering and counter-terror financing commitments.


India’s efforts have led to the IMF imposing 11 stringent conditions on Pakistan’s bailout program, covering fiscal, governance, social, monetary, and financial reforms. However, Indian officials remain skeptical about Pakistan’s compliance and the potential diversion of funds to military uses.


Finance Minister Nirmala Sitharaman and Indian diplomats have actively engaged with IMF leadership and member countries to voice these concerns, but the IMF loan was approved despite India’s objections. India abstained from voting, as IMF rules do not permit a negative vote on such matters.


A top government official stated, “India is not against financial aid to any country, but the data suggest that this bailout has come in a war-like situation. Pakistan’s history shows funds are often used for buying arms rather than benefiting its people.”


The upcoming World Bank meeting will be a critical platform for India to present its case and seek to block the funding, reinforcing its claim of international financial aid should not support countries with a record of alleged sponsoring of terrorism and military aggression.


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