Cash-Strapped Pakistan Eyes BRICS Bank Seat With China’s Support But India Stands In The Way

Cash-strapped Pakistan has approached China for support in joining the BRICS-backed New Development Bank, hoping to expand its lending avenues, Nikkei Asia reported.

However, India — a founding member of the bank — is expected to resist the move due to longstanding tensions with Pakistan.

Formed in 2015 by Brazil, Russia, India, China and South Africa, the NDB has equal 18.76 per cent stakes of each founding member.

Newer entrants — Egypt, Bangladesh, Algeria and the UAE — hold smaller stakes of 2.24 per cent, 1.77 per cent, 1.15 per cent and 1.04 per cent.

Headquartered in Shanghai, the NDB funds development projects in emerging markets and serves as a counterweight to Western-dominated financial institutions.

In an official X post, Pakistan’s Finance Ministry said Finance Minister Muhammad Aurangzeb requested China’s backing for NDB membership during his meeting with Chinese Deputy Finance Minister Liao Min at the IMF–World Bank meetings in Washington last week.

Islamabad had applied for NDB membership earlier in the year and the application remains under review, a government official was quoted as saying by Nikkei Asia.

Analysts expect Beijing to back Pakistan’s entry bid despite challenges in Belt and Road projects across Pakistan.

Beijing has invested $25.4 billion in the China-Pakistan Economic Corridor, but frustrations have grown over recurring issues — including attacks on Chinese workers, delayed payments, and governance lapses in Pakistan.

NDB membership would diversify Pakistan’s borrowing options and reduce its IMF and World Bank dependence

To join the NDB, a country must win approval from four of the five founding members.

Although India has long opposed Pakistan’s participation in BRICS platforms, backing from China, Russia, Brazil and South Africa could tilt the balance.

Jeremy Garlick of the Prague University of Economics and Business said India’s opposition is almost certain, given the strained ties between the two countries.

However, he also noted that Beijing might not lobby too aggressively, citing Pakistan’s weak financial management record, Nikkei Asia reported.

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