India is reportedly set to oppose Pakistan’s attempt to acquire a stake in the Shanghai-based New Development Bank (NDB), with plans to raise the issue at the upcoming International Monetary Fund (IMF) meeting, according to Business Standard.
Pakistan has recently approved the purchase of 5,882 NDB shares, valued at $582 million, as part of an effort to diversify its financial options and reduce reliance on the World Bank and IMF.
The Pakistani government, led by Finance Minister Mohammad Aurangzeb, has expressed that this investment would help Islamabad reduce its dependency on traditional lenders. However, India is preparing to voice objections during the IMF meeting, where discussions will also focus on Pakistan’s $7 billion bailout package, granted to the country in July 2024 due to its economic difficulties.
New Delhi is expected to highlight the contradiction in Pakistan’s approach, as it is simultaneously seeking IMF loans to avoid economic collapse while planning to invest in another international financial institution. India’s objections are based on the belief that this “doublespeak” is unacceptable, especially as Pakistan seeks to secure funding from both the IMF and the NDB.
In addition to this financial dispute, Pakistan has formally applied for membership in the BRICS group, which includes Brazil, Russia, India, China, and South Africa. However, India is likely to block Pakistan’s membership, given the ongoing tensions between the two neighboring countries.
The NDB was founded by BRICS in 2015 to support developing nations that are underrepresented in the global financial system. Initially, the founding members held equal voting shares, which were later adjusted to encourage broader participation.
Currently, BRICS nations hold significant stakes, with Brazil, Russia, India, China, and South Africa each controlling 18.98% of the bank’s shares.
