New Delhi: After the Pahalgam terror attack, India has started strengthening the economic blockade of Pakistan. After banning imports and exports, India on Monday asked the Asian Development Bank to reduce the financial aid it gives to Pakistan, so that this country which has become a safe haven for terrorists can be taught a lesson.
This issue was raised in the meeting of Finance Minister Nirmala Sitharaman with ADB President Masato Kanda in Italy. Sources said that in view of the actions of its neighbour, India is also planning a strategy to send it to the grey list of the Financial Action Task Force once again, so that it becomes difficult to get help from international institutions.
Sources said, 'Finance Minister Sitharaman raised the issue of global terror financing during her meeting with the ADB President. The Finance Minister stressed that the finance that Pakistan receives from ADB should be reduced. Pakistan is not refraining from promoting terrorism. Such a step will send a strong message to it.' Currently, ADB has approved a total financial assistance of $ 43.4 billion in the form of public sector loans, grants and technical assistance. Recently, it approved a help of $ 500 million for Pakistan.
The Finance Minister is on a foreign trip from 4 to 7 May
The Finance Minister is on a foreign trip from 4 to 7 May to attend the 58th annual meeting of ADB in Milan, Italy. During this, she also met Italian Finance Minister Giancarlo Giorgetti. Sources said, 'In the meeting with the Italian Finance Minister, Finance Minister Sitharaman also raised the issue of global terror financing. She said that Italy should reconsider its financial relations with Pakistan and the aid it is receiving should be reduced.' However, the ministry has officially denied raising this issue.
Tightening the noose around Pakistan
According to sources, 'India has been moving to put Pakistan in the grey list of the Financial Action Task Force once again. After Commerce Minister Piyush Goyal and now during the Finance Minister's foreign trip, European countries including Britain and Italy and America have been contacted in this regard. If this happens, it will become difficult for Pakistan to get funds from international institutions, and secondly, the use of the money received will be strictly monitored.' Let us tell you that FATF is an organization that monitors global terror financing and money laundering. It had put Pakistan in the grey list in June 2018. However, after 4 years in October 2022, Pakistan was removed from the grey list.
Pakistan's economy is dependent on foreign aid
Pakistan's poor economy is heavily dependent on foreign aid. In January this year, the World Bank approved a loan of 20 billion dollars to Pakistan. At the same time, the IMF has already approved a package of 7 billion dollars. A review meeting is to be held on May 9 to see how much work Pakistan has done according to the terms of this loan. According to sources, 'India is also in touch with the IMF so that the aid it receives can be reduced in view of Pakistan's actions of promoting terrorism.'
How far has the matter reached?
According to the Finance Ministry, in a meeting with the ADB President in Milan, Sitharaman reiterated India's focus on 'accelerating economic growth by promoting the private sector. It was also said that the regulatory ecosystem has been strengthened by steps such as Insolvency and Bankruptcy Code, reduction in corporate tax rates, implementation of GST, production linked incentives. The Finance Minister told the ADB President that there are opportunities for ADB to introduce new, innovative financing products and models in India. Kanda spoke of ADB's full support for India's development priorities.
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