
Multilateral bank lending must ensure funds are used for intended purposes: FM Sitharaman
Ms. Sitharaman's comment was part of her statement at the 4th International Conference on Financing for Development in Seville, Spain. It comes soon after India lobbied both the International Monetary Fund (IMF) and the Asian Development Bank (ADB) to review their funding of Pakistan, as such loans were allegedly channelled towards increased military expenditure rather than towards developmental purposes.
'India supports reforms to the international financial architecture to enhance inclusivity and equity, including MDB reforms and fairer credit rating systems,' Ms. Sitharaman said. 'MDB lending must be aligned with long-term development goals and backed by robust monitoring frameworks to ensure that funds are used as intended,' she added.
The Hindu had reported in May about how Ms. Sitharaman had called the IMF managing director Kristalina Georgieva to sensitise her to the issue that, while India was not against funding for developmental purposes, 'the timing for such funding was not right due to the border tensions' between India and Pakistan.
In June, The Hindu further reported that India had 'vehemently opposed' the ADB's latest decision to provide additional funding to Pakistan, saying the country's increased military spending could not fully be explained through domestic resource mobilisation.
'India's progress across all action areas of the Compromiso de Sevilla demonstrates that developing countries can be both beneficiaries and drivers of global development finance,' Ms. Sitharaman said in her statement.
'India stands ready to lead by example, share its experiences, and collaborate with partners in advancing this agenda,' she added.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


India.com
an hour ago
- India.com
Beggar Pakistan drowning in debt, won't be able to repay loans due to...; IMF, World Bank will...
File/Representational Pakistan loans: Pakistan, which is facing a deep economic crisis, is now drowning under mounting debt from various countries and financial institutions such as the World Bank and IMF, and may not be able to repay its creditors for years to come, which is likely to sink the Pakistan economy further down the drain. How much does Pakistan owe? According to economists, Pakistan is caught in a vicious debt trap as it is forced to take fresh loans to repay old one, and the cycle continues because the Pakistan economy lies in shambles and is unable to generate any significant revenue of its own. In the last fiscal, Pakistan borrowed a record $26.7 billion in foreign loans, at least half of which was allocated to refinance existing borrowings. Pakistan has borrowed stupendous amounts of money from ally nations like Saudi Arabia, China, UAE and Kuwait, apart from hefty loans from global financial bodies like the IMF and the World Bank. As per reports, Saudi Arabia deposited a cash amount of $5 billion in Pakistan Central Bank at an interest of 4%, and if the loan will roll over annually if Islamabad fails to repay it. China, Pakistan's 'all-weather' ally, has loaned $4 billion to Islamabad at 6% interest, while UAE has deposited $3 billion in the Central Bank of Pakistan. What interest is Pakistan paying on these loans? According to data, Pakistan has borrowed a total of $6.9 billion from various institutions, including $2.1 billion from the Asian Development Bank (ADB), $1.7 billion from the World Bank. The Islamic Development Bank has given a funding of $716 million to Pakistan, while Saudi Arabia has provided $200 million under an oil financing arrangement with a 6% interest. Notably, Pakistan was unable to access the international capital markets last year due to poor financial condition, and could not raise the $1 billion it planned to using Eurobonds and Panda bonds. Pakistan's foreign exchange reserves stood at $14.5 billion at the end of June, a major portion of which is refinanced loans, rollover and new loans. Why IMF, World Bank may shun Pakistan? Pakistan's mounting debt crisis means the country has a poor credit rating and global institutions like the IMF and the World Bank might not come to the rescue if Islamabad's economic situation worsens or remains stagnant. The poor credit rating is also the reason why Pakistan has to pay huge interest on commercial loans and cash deposits.


The Print
an hour ago
- The Print
India's forex kitty drops by USD 1.183 bn to USD 695.489 bn
For the week ended July 18, foreign currency assets, a major component of the reserves, slipped by USD 1.201 billion to USD 587.609 billion, the data released on Friday showed. In the previous reporting week, the overall kitty had dropped by USD 3.064 billion to USD 696.672 billion. The reserves had touched an all-time high of USD 704.885 billion in end-September 2024. Mumbai, Jul 25 (PTI) India's forex kitty declined by USD 1.183 billion to USD 695.489 billion during the week ended July 18, the RBI said on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. However, the gold reserves increased by USD 150 million to USD 84.499 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by USD 119 million to USD 18.683 billion, the apex bank said. India's reserve position with the IMF declined by USD 13 million to USD 4.698 billion in the reporting week, the apex bank data showed. PTI AA SHW This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.


Time of India
an hour ago
- Time of India
Himachal BJP leaders meet Nirmala, seek aid to rebuild disaster-hit regions
Shimla: A BJP delegation from Himachal, including LoP Jairam Thakur, met Union finance minister Nirmala Sitharaman Friday to seek maximum financial assistance for the reconstruction and rehabilitation of the monsoon-related disaster-hit regions. Besides apprising the finance minister about the large-scale devastation in Himachal, the delegation also submitted documents mentioning the damage to private and govt properties. The LoP said assembly constituencies like Mandi district's Seraj, Nachan, Karsog, and Dharampur, as well as several areas in Chamba district, were badly affected. The disaster resulted in financial losses exceeding Rs 1,200 crore and more than 50 deaths. On June 30 alone, 42 people lost their lives. More than 700 houses were washed away, and over 1,000 houses were partially damaged but are uninhabitable. Over 1,000 animal shelters and more than 1,000 livestock were affected. Besides, people's agricultural lands, crops, and orchards were also ruined, taking away their means of livelihood, submitted the delegation. Thakur said the finance minister assured all possible help for Himachal. BJP state president Rajeev Bindal, the MPs of the state, and MLAs of the affected areas were also part of the delegation.