India is poised to oppose Pakistan's plans to acquire a stake in the New Development Bank (NDB), a multilateral lender established by the BRICS nations (Brazil, Russia, India, China, and South Africa) in 2015. Pakistan intends to purchase a 1.1% stake in the NDB for approximately $582 million, aiming to diversify its funding sources and reduce dependence on Western-backed institutions like the World Bank and the IMF.

However, India is likely to raise concerns about this investment during an upcoming IMF meeting, where the second tranche of Pakistan's $7 billion bailout package is set to be reviewed.

India's opposition stems from Pakistan's current economic situation, as Islamabad is receiving IMF loans to mitigate bankruptcy risks while simultaneously planning significant investments elsewhere. India may argue that Pakistan's actions represent a form of "doublespeak," where it seeks financial assistance from the IMF while investing in other financial institutions.

Historically, India has abstained from voting on Pakistan's loan requests at the IMF but is now expected to voice its concerns more actively.

The NDB, operating from Shanghai since 2016, focuses on financing infrastructure and sustainable development projects in developing countries. Pakistan's investment in the NDB is seen as a strategic move to expand its financial options beyond traditional Western-backed lenders.

However, India's stance could complicate Pakistan's plans, given the geopolitical tensions between the two nations and India's influence within the BRICS grouping.

BS Report