India, June 4 -- India opposed the Asian Development Bank (ADB)'s move to grant a $800 million loan to Pakistan citing data that indicate Islamabad diverting development funds for military use, and cautioned the bank about impending credit risks for itself, two officials said.

India shared deep concerns regarding the potential misuse of ADB resources, particularly in light of Pakistan's increasing defence expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms, they said requesting anonymity.

India's strong opposition against ADB's financial aid to Pakistan came almost a month after New Delhi protested the International Monetary Fund (IMF)'s decision to provide a $2.3 billion bailo...