India's Stance on Multilateral Development Banks and Pakistan
India is actively engaging with multilateral development banks (MDBs) to oppose funding to Pakistan following a terror attack in Kashmir.
Key Actions and Concerns
- Objective: To prevent financial flows aiding Pakistan's alleged terror activities.
- MDBs Involved: Includes the World Bank, IMF, and Asian Development Bank.
- India plans to highlight concerns about development funding to Pakistan.
Recent Terror Attack
India's actions follow an attack on April 22 in Pahalgam, killing 26 tourists. This has intensified India's measures against Pakistan.
Financial Action Task Force (FATF) Grey List
- India's Strategy: Attempt to bring Pakistan back to the FATF's grey list for money laundering and terror financing.
Details of Financial Support to Pakistan
- IMF: Providing a $7-billion aid package, with the next tranche contingent on performance reviews.
- The IMF Executive Board to review Pakistan's financing facilities on May 9.
- World Bank: Committed $50 billion for nearly 400 projects, including recent approvals for climate resilience and development in Khyber Pakhtunkhwa.
- Asian Development Bank: Scheduled a board meeting on May 20 and has committed over $43.4 billion to Pakistan.
Background
Pakistan has been a member of the IMF and World Bank since 1950, with multiple financial arrangements and projects in place.
