Pakistan will invest $582 million to purchase a 1.1% stake in the BRICS New Development Bank (NDB) to reduce its reliance on the World Bank and the International Monetary Fund (IMF), Nikkei Asia reported.
"The primary motivation for Pakistan to join the NDB is to reduce dependence on the Bretton Woods economic system, which is somewhat ironic given how heavily Pakistan relies on that very system. Although Islamabad dislikes the conditions attached to much of the support it receives from this system," the publication quoted Michael Kugelman, Director of the South Asia Institute at the Wilson Center in Washington. The new investment will be spread over seven years to ease the debt burden, Nikkei Asia noted.
On September 25, 2024, the IMF Executive Board approved a $7 billion financial assistance package for Pakistan over 37 months. The first tranche under this loan program amounted to $1.1 billion.
The NDB, with a capital of $100 billion and headquartered in Shanghai, was established by the BRICS countries — Brazil, Russia, India, China, and South Africa — in 2014. The bank’s goal is to finance infrastructure projects and sustainable development initiatives in BRICS member states and other developing countries.
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Based on TASS materials