A Business Standard report said on Monday that India plans to block Pakistan’s stake purchase in BRICS New Development Bank. Pakistan is trying to buy a 1.1% stake in the Shanghai-based BRICS New Development Bank, which is worth about $582 million. Pakistan’s Finance Minister Muhammad Aurangzeb says this plan will help the country to raise money for important projects.
Why is India Opposing Pakistan’s plan to buy shares in the BRICS bank?
India plans to raise concerns during a meeting of the International Monetary Fund (IMF). India usually stays quiet during IMF discussions on Pakistan’s loan requests but will speak up this time.
The IMF recently gave Pakistan a $7 billion bailout to help the country’s economic crisis. India believes Pakistan is being contradictory—asking for loans from the IMF to avoid bankruptcy while also looking to invest in another lender, the BRICS bank.
About New Development Bank (NDB):
The National Development Bank was founded by the BRICS nations (Brazil, Russia, India, China, and South Africa) in 2015. It has been operational since 2016, based in Shanghai.
It’s goal is to support sustainable development and infrastructure projects in developing countries and emerging markets. The NDB has regional offices in all five BRICS countries.