In a major diplomatic escalation following the April 22 terror attack in Pahalgam, India has urged Italy and the Asian Development Bank (ADB) to halt all financial assistance to Pakistan, citing its alleged role in supporting terrorism.
During the 58th Annual Meeting of the Asian Development Bank (ADB) in Milan, Union Finance Minister Nirmala Sitharaman raised the demand directly with her Italian counterpart Giancarlo Giorgetti, according to sources cited by media. The meeting took place on the sidelines of the multilateral event, where Sitharaman is leading the Indian delegation.
“India has made it clear that continued financial support to Pakistan — through bilateral or multilateral means — indirectly enables its terror infrastructure,” a senior official told media.
According to the United Nations Development Programme (UNDP), Italy’s Development Cooperation is a key financial partner in Pakistan, with several ongoing initiatives. These include humanitarian aid, infrastructure development, and social welfare projects.
In a separate meeting with ADB officials, Sitharaman conveyed India’s objection to Pakistan receiving regional development aid, stressing that any financial support must be contingent on strict accountability and anti-terror commitments.
The demand comes in the wake of the Pahalgam terror attack, which killed 26 people, mostly tourists, and injured many others. In response, India has initiated a series of punitive diplomatic and strategic measures against Islamabad:
- Downgrading diplomatic ties with Pakistan
- Suspending the Indus Waters Treaty (1960), with long-term implications for Pakistan’s water access
- Preparing to push for Pakistan’s re-entry into the FATF grey list, citing continued terror financing and cross-border threats
Sources confirm that India is also engaging with international financial institutions and development bodies to highlight Pakistan’s track record of allegedly harbouring terrorist groups.
“It is imperative that development funding does not end up empowering entities that compromise regional peace and stability,” an Indian official noted.
The 58th ADB meeting, running from May 4 to 7, is being attended by ADB member countries, international financial institutions, and global economic stakeholders. Sitharaman is scheduled to participate in key forums including the Governors’ Business Session, Plenary, and the Governors’ Seminar on ‘Cross-Border Collaboration for Future Resilience.’