Pakistan’s request to join the New Development Bank underscores its broader strategy to seek financial independence from traditional Western-dominated institutions. By aligning more closely with China and other BRICS nations, Pakistan aims to access loans and development funds with potentially fewer conditions, offering flexibility in managing its domestic economic priorities. Analysts note that membership could also help Islamabad attract long-term investment in critical infrastructure and industrial projects, easing the pressure on its balance of payments and foreign reserves.
China, Pakistan’s long-standing economic and strategic partner, has been pivotal in funding major projects under the China-Pakistan Economic Corridor (CPEC). Support for NDB membership would further solidify Beijing’s influence over Islamabad’s development trajectory, while also expanding China’s footprint in multilateral development financing. Observers suggest that China is likely to advocate for Pakistan’s inclusion, given its close bilateral ties and shared interest in strengthening BRICS-led alternatives to the IMF and World Bank.
The timing of Pakistan’s application is significant, coming as the country grapples with rising inflation, a weakening currency, and declining foreign exchange reserves. Access to NDB funds could provide much-needed liquidity to fund infrastructure, energy, and industrial projects without the austerity measures typically attached to Western loans. This would enable Pakistan to pursue economic stabilization and growth initiatives while maintaining a degree of fiscal autonomy.
However, challenges remain, as India, a founding member of the NDB, could have reservations about Pakistan’s membership given longstanding geopolitical tensions. While the BRICS framework emphasizes development and economic cooperation, political considerations may influence the pace and terms of Pakistan’s admission. Nonetheless, Islamabad appears determined to leverage China’s backing to secure a foothold in the NDB, signaling a shift towards alternative financing mechanisms in pursuit of economic resilience.
Successful entry into the NDB could also strengthen Pakistan’s regional and international standing, allowing it to participate in decision-making processes alongside emerging economies. For Beijing and the BRICS bloc, Pakistan’s inclusion could demonstrate the bank’s growing reach and its role as a credible counterbalance to Western financial institutions, reinforcing the strategic and economic influence of the BRICS countries in global development finance.
