New Delhi reportedly opposes its neighbors plan to buy a $582 million stake in the New Development Bank

India is preparing to block Pakistan's attempt to acquire a 1.1% stake in the Shanghai-based New Development Bank (NDB), Business Standard reported on Monday, citing sources. New Delhi will likely raise its concerns at the upcoming International Monetary Fund (IMF) meeting.

In February, the Pakistani government approved the acquisition of 5,882 NDB shares worth $582 million, with $116 million as paid-in capital.

Pakistani Finance Minister Mohammad Aurangzeb stated that the move would help Islamabad diversify its lending options and reduce its dependence on the finances and policies of the World Bank and the IMF.

According to Business Standard, New Delhi will raise the issue at the IMF meeting to review the$7 billion bailout packagegranted to the nearly bankrupt South Asian nation in July 2024. In a departure from its usual practice of abstaining from discussions on Pakistan's loan requests at the IMF, India is likely to voice its objections to the proposed deal with the NDB this time, the report noted.

India is expected to highlight the inconsistency in Pakistan's actions, pointing out that while Pakistan is receiving IMF loans to mitigate bankruptcy risks, it is simultaneously planning to invest in another lender, the NDB. New Delhi will likely argue that this "doublespeak" is unacceptable, the report claims.

Pakistan has also 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 expanded in the past two years to include 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 to be blocked by India as ties between the two neighbors remain extremely tense.

The NDB was founded by BRICS in 2015 to address the needs of developing countries that, according to its members, are not equally represented in the international financial architecture. Initially, the five founding members of BRICS had equal voting shares in the institution; these were later slightly reduced to attract investment from more countries. Currently, 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.

(RT.com)