Modi says India wants normalization of ties, puts onus on Pakistan 

India's Prime Minister Narendra Modi takes part in a working session during the G7 Leaders' Summit in Hiroshima on May 20, 2023. (AFP/File)
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Updated 20 May 2023
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Modi says India wants normalization of ties, puts onus on Pakistan 

  • Statement comes as Modi steps up international diplomacy, keeping eye on next year’s elections in India 
  • Pakistan-India ties stand frozen since India revoked in 2019 autonomy of the part of Kashmir it controls 

ISLAMABAD: Indian Prime Minister Narendra Modi said on Friday that New Delhi wanted normalization of its relations with Islamabad, but put the onus on Pakistan, international media reported, as the Indian premier geared up for a Group of Seven summit in Japan’s Hiroshima. 

Modi said he was looking forward to discussing global changes and challenges in areas such as energy, digital technology and supply chains at the Hiroshima summit, Japanese newspaper Nikkei Asia reported ahead of his arrival in Japan on Friday evening. 

India, which is not a G-7 member, was invited by the summit host and Japanese Prime Minister Fumio Kishida, who has repeatedly expressed his own determination to strengthen ties with the so-called Global South, or the developing world. 

During the interview, the Indian premier also touched on New Delhi’s ties with two of its closest neighbors, Pakistan and China, and said New Delhi wanted “normal and neighborly relations” with Islamabad. 

“However, it is incumbent upon them to create a conducive environment free from terrorism and hostilities,” he said. “The onus is on Pakistan to take necessary steps in this regard.” 

Ties between bitter rivals India and Pakistan stand frozen since August 5, 2019, when New Delhi revoked semi-autonomous status of the part of Kashmir it controls, dividing it into two federally administered territories. 

The Muslim-majority Himalayan region has been a bone of contention between Pakistan and India since their independence from the British rule in 1947. Both neighbors rule parts of the Himalayan territory, but claim it in full and have fought two of their four wars over the disputed region. 

Pakistan calls the revocation of Kashmir’s autonomy part of New Delhi’s alleged attempts to change the demography of the region, and has demanded the world fraternity take notice of it. 

A large chunk of Ladakh plateau in Kashmir is also under the Chinese control. Relations between New Delhi and Beijing have also been strained since a military clash in Ladakh killed 20 Indian and four Chinese soldiers in 2020. 

Srinagar, the summer capital of Indian-administered Kashmir, will host a meeting of the tourism working group for the Group of Twenty (G20) members on May 22-24. 

While Pakistan and China have opposed the summit in the disputed region, New Delhi has countered the objections, saying it is free to hold meetings on its own territory. 

As Modi steps up his international diplomacy, he is also keeping an eye on next year’s general elections in India. His Bharatiya Janata Party (BJP) seeks a third straight term in power, with Modi still widely popular with the masses. 

“Our progress is evident, as we have risen from being the tenth largest economy in 2014 to now being the fifth largest globally,” Modi told Nikkei Asia. 

“While it is true that global headwinds pose challenges to growth, we have built a strong foundation in recent years, which positions us favorably.” 


World Bank approves $700 million for Pakistan’s economic stability

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World Bank approves $700 million for Pakistan’s economic stability

  • Of this, $600 million will go for federal programs and $100 million will ⁠support a provincial program in Sindh
  • The results-based design ensures that resources are only disbursed once program objectives are achieved

ISLAMABAD: The World Bank has approved $700 million in ​financing for Pakistan under a multi-year initiative aimed at supporting the country’s macroeconomic stability and service delivery, the bank said on Friday.

The funds will be released under the bank’s Public ‌Resources for Inclusive ‌Development — Multiphase ‌Programmatic ⁠Approach (PRID-MPA) that ‌could provide up to $1.35 billion in total financing, according to the lender.

Of this amount, $600 million will go for federal programs and $100 million will ⁠support a provincial program in ‌the southern Sindh province. The results-based design ensures that resources are only disbursed once program objectives are achieved.

“Pakistan’s path to inclusive, sustainable growth requires mobilizing more domestic resources and ensuring they are used efficiently and transparently to deliver results for people,” World Bank country director Bolormaa Amgaabazar said in a statement.

“Through this MPA, we are working with the Federal and Sindh governments to deliver tangible impacts— more predictable funding for schools and clinics, fairer tax systems, and stronger data for decision‑making— while safeguarding priority social and climate investments and strengthening public trust.”

The approval ‍follows a $47.9 ‍million World Bank grant ‍in August to improve primary education in Pakistan’s most populous Punjab province.

In November, an IMF-World Bank ​report, uploaded by Pakistan’s finance ministry, said Pakistan’s fragmented ⁠regulation, opaque budgeting and political capture are curbing investment and weakening revenue.

Regional tensions may surface over international financing for Pakistan. In May, Reuters reported that India would oppose World Bank funding for Pakistan, citing a senior government ‌source in New Delhi.

“Strengthening Pakistan’s fiscal foundations is essential to restoring macroeconomic stability, delivering results and strengthening institutions,” said Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan.

“Through the PRID‑MPA, we are launching a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and strengthen revenue administration, budget execution, and statistical systems. These reforms will ensure that resources reach the frontline and deliver better outcomes for people across Pakistan with greater efficiency and accountability.”

In Sindh, the program is expected to increase provincial revenues, enhance the speed and transparency of payments, and broaden the use of data to guide provincial decision making. The program will directly support the increase of public resources for inclusive development, including more equitable and responsive financing for primary health care facilities and more funding for schools.