New Delhi, June 5 -- India opposed a move by the Asian Development Bank (ADB) to grant a $800 million loan to Pakistan citing evidence of Islamabad diverting development funds for military use, and cautioned the bank about impending credit risks, two officials familiar with the matter 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 added, requesting anonymity.

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