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Media reports India wanting to block Pakistan’s investment in BRICS bank
(MENAFN) India is reportedly preparing to oppose Pakistan’s bid to acquire a 1.1% stake in the Shanghai-based New Development Bank (NDB), Business Standard reported on Monday, citing sources. New Delhi is expected to raise its objections at the upcoming International Monetary Fund (IMF) meeting.
In February, Pakistan approved the purchase of 5,882 NDB shares valued at $582 million, with an initial paid-in capital of $116 million. Pakistani Finance Minister Mohammad Aurangzeb emphasized that the move would help Islamabad diversify its borrowing options and reduce reliance on the World Bank and IMF.
According to the report, India plans to challenge Pakistan’s investment plans during the IMF meeting, which will review the $7 billion bailout package granted to the financially struggling country in July 2024. While New Delhi typically avoids discussions on Pakistan’s IMF loans, it is expected to break from tradition and object to the NDB deal, arguing that Pakistan’s attempt to invest in another lender while receiving IMF assistance is contradictory.
Pakistan has also formally applied for BRICS membership, but its entry is likely to face resistance from India due to ongoing tensions between the two nations. The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, the UAE, and Indonesia, with Saudi Arabia expected to join soon. Several other countries have also been granted "partner country" status.
Founded in 2015, the NDB was established to serve developing economies that its members believe are underrepresented in global financial institutions. The bank’s original five founding members each hold an 18.98% stake, while Egypt, Bangladesh, and the UAE have acquired smaller shares.
In February, Pakistan approved the purchase of 5,882 NDB shares valued at $582 million, with an initial paid-in capital of $116 million. Pakistani Finance Minister Mohammad Aurangzeb emphasized that the move would help Islamabad diversify its borrowing options and reduce reliance on the World Bank and IMF.
According to the report, India plans to challenge Pakistan’s investment plans during the IMF meeting, which will review the $7 billion bailout package granted to the financially struggling country in July 2024. While New Delhi typically avoids discussions on Pakistan’s IMF loans, it is expected to break from tradition and object to the NDB deal, arguing that Pakistan’s attempt to invest in another lender while receiving IMF assistance is contradictory.
Pakistan has also formally applied for BRICS membership, but its entry is likely to face resistance from India due to ongoing tensions between the two nations. The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, the UAE, and Indonesia, with Saudi Arabia expected to join soon. Several other countries have also been granted "partner country" status.
Founded in 2015, the NDB was established to serve developing economies that its members believe are underrepresented in global financial institutions. The bank’s original five founding members each hold an 18.98% stake, while Egypt, Bangladesh, and the UAE have acquired smaller shares.
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