Milan

In a significant diplomatic move, India has urged both the Italian government and the Asian Development Bank (ADB) to halt financial assistance to Pakistan in the wake of the April 22 terror attack in Pahalgam, Jammu and Kashmir, which claimed the lives of 26 people, primarily tourists, and injured several others.

Finance Minister Nirmala Sitharaman raised these demands during bilateral meetings held on the sidelines of the 58th Annual Meeting of the Board of Governors of the ADB in Milan. According to official sources, she called on ADB President Masato Kanda to cut financial flows to Pakistan, citing its continued support for cross-border terrorism. The issue was reportedly part of a broader agenda discussed during the meeting.

In a separate meeting with Italian Finance Minister Giancarlo Giorgetti, Sitharaman similarly pressed Italy to reconsider its development cooperation with Pakistan. The Italian Development Cooperation, a key partner of the United Nations Development Programme (UNDP), has been actively involved in initiatives across Pakistan, as highlighted on the UNDP’s website.

These moves are part of a broader diplomatic and strategic offensive by New Delhi following the Pahalgam attack. India has already suspended the 1960 Indus Waters Treaty, a decision expected to significantly impact Pakistan’s water supply over time. Additionally, New Delhi plans to approach the Financial Action Task Force (FATF) to push for Pakistan's inclusion in the grey list once again.

Sitharaman is leading the Indian delegation to the ADB meetings, which run from May 4 to 7 in Milan. The Indian team comprises officials from the Department of Economic Affairs, Ministry of Finance. The Finance Minister will participate in key sessions, including the Governors' Business Session, the Governor’s Plenary, and a seminar on "Cross-Border Collaboration for Future Resilience."

In a post on social media platform X, the Finance Ministry said Sitharaman highlighted India’s commitment to private sector-led economic growth, supported by major policy reforms such as the Insolvency and Bankruptcy Code, GST, Production-Linked Incentives, and the GatiShakti National Master Plan. She also encouraged ADB to pilot innovative financing products in India, aligned with Prime Minister Narendra Modi’s vision of a "Viksit Bharat" by 2047.

Union Finance Minister Smt. @nsitharaman met Mr. Masato Kanda @ADBPresident during the 58th #ADBAnnualMeeting in Milan, Italy, today.

The Union Finance Minister reiterated that India focuses on private sector-led economic growth and has been consistently creating a conducive… pic.twitter.com/mjiqXliKSB

— Ministry of Finance (@FinMinIndia) May 5, 2025

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ADB President Kanda reaffirmed the bank’s full support for India’s development priorities during the meeting.