Amidst India’s diplomatic efforts following the Pahalgam situation, two significant developments are considered major setbacks for New Delhi’s foreign policy. On one hand, Pakistan, known as a “hotbed of terrorists,” has been appointed as co-chair of the United Nations Security Council’s Counter-Terrorism Committee. Simultaneously, Islamabad will also lead the committee on sanctions against the Taliban.

On the other hand, after the International Monetary Fund (IMF), the Asian Development Bank (ADB) has approved an $800 million loan (approximately six thousand crore rupees) to bankrupt Pakistan, despite India’s strong objections. This turn of events poses a challenge to India’s diplomatic initiatives. Previously, Pakistan was on the Financial Action Task Force’s (FATF) grey list for a long time, and India has intensified efforts to get Pakistan re-listed. New Delhi fears that these loan funds could be used for military purposes or to support terrorists, and therefore, India has demanded strict monitoring to ensure the funds are spent solely on development projects.