India is preparing to block Pakistan’s attempt to acquire a 1.1 per cent stake in the Shanghai-based New Development Bank (NDB), reports said.
New Delhi will likely raise its concern at the upcoming International Monetary Fund (IMF) meeting.
Earlier in February, the Pakistani government had approved the acquisition of 5,882 NDB shares worth $582 million, with $116 million as paid-in capital.
According to reports, Pakistani finance minister Mohammad Aurangzeb said, that the move would help Pakistan diversify its lending options and reduce dependency on the finances and policies of the World Bank and the IMF.
However, New Delhi is likely to raise the issue at the IMF meeting to review the $7 billion bailout package granted to the nearly bankrupt South Asian nation in July 2024.
Meanwhile, Islamabad has formally sought membership in BRICS, the grouping initially formed by five emerging economies, which includes its rival India alongside Brazil, Russia, China, and South Africa.
BRICS has since expanded and it now includes Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia. Saudi Arabia has accepted membership but has not formally joined yet.
A host of other nations, including Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan, have acquired “partner country” status.
However, Pakistan’s potential membership is likely going to be blocked by India as bilateral relations between the two neighbouring nations have deteriorated over recent years.
The NDB was founded by BRICS in 2015 to address the needs of developing economies that, according to its members, are not equally represented in the international financial architecture.
Presently, Brazil, Russia, India, China, and South Africa each hold an 18.98% stake, while Egypt holds a 2.27% stake, and Bangladesh and the UAE hold stakes of 1.79% and 1.06%, respectively.
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