India is reportedly preparing to oppose Pakistan’s bid to acquire a $582 million stake in the Shanghai-based New Development Bank (NDB), a financial institution established by the BRICS bloc. According to sources cited by Business Standard, New Delhi is expected to raise objections at the upcoming International Monetary Fund (IMF) meeting.
The Pakistani government approved the acquisition of 5,882 NDB shares in February, with $116 million set as paid-in capital. Islamabad views the move as a step toward diversifying its lending options and reducing its reliance on financial institutions such as the IMF and the World Bank.
However, India is set to challenge Pakistan’s investment plans, arguing that they are contradictory to its ongoing financial struggles. New Delhi is expected to highlight the inconsistency of Pakistan seeking IMF loans to avoid economic collapse while simultaneously planning a significant investment in the NDB. This move marks a shift in India’s stance, as it has traditionally abstained from IMF discussions on Pakistan’s loan requests.
India will likely contend that such “doublespeak” is unacceptable, emphasizing that the $7 billion IMF bailout granted to Pakistan in July 2024 should be used for economic stabilization rather than external investments.
Beyond the NDB investment, Pakistan has also formally applied for full membership in BRICS, an intergovernmental organization initially formed by Brazil, Russia, India, China, and South Africa. The bloc has recently expanded to include Egypt, Ethiopia, Iran, the UAE, and Indonesia, with Saudi Arabia accepting membership but yet to formalize its entry. Several other nations, including Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan, have gained “partner country” status.
Despite Pakistan’s efforts to join BRICS, India is expected to block its entry, citing long-standing tensions between the two neighbors. Relations between India and Pakistan remain fraught due to historical disputes, including ongoing conflicts over Kashmir and cross-border terrorism concerns.
The NDB was established in 2015 to provide an alternative funding source for developing nations that, according to BRICS members, lack fair representation in global financial institutions. Initially, the founding members—Brazil, Russia, India, China, and South Africa—each held equal voting shares in the bank. However, these shares have since been slightly adjusted to attract investment from additional countries. As of now, each of the five original BRICS members holds an 18.98% stake in the NDB, while Egypt has a 2.27% stake, and Bangladesh and the UAE hold 1.79% and 1.06%, respectively.
Pakistan’s attempt to secure a 1.1% stake in the bank and its potential BRICS membership reflect its ambition to expand its financial and geopolitical alliances. However, with India opposing these moves, Islamabad may face significant hurdles in its efforts to join the BRICS financial framework.
