Pakistan has reached out to China, its longstanding ally, to assist in acquiring membership in the Brics Development Bank, now known as the New Development Bank (NDB). The NDB, established in 2015 by India and other Brics nations, is being pursued by Pakistan amidst its economic challenges exacerbated by stringent conditions from Western financial institutions.
Pakistani Finance Minister Muhammad Aurangzeb engaged with Chinese Deputy Finance Minister Liao Min in Washington to formally request China’s support for Pakistan’s NDB membership, as reported by Geo TV of Pakistan. Securing membership in the NDB would enable Pakistan to diversify its financial partnerships beyond entities like the International Monetary Fund (IMF) and the World Bank, which impose rigorous terms.
The Brics group, initially comprising Brazil, Russia, India, and China in 2009, extended an invitation to South Africa in 2010 and later expanded its membership in 2024 to include Saudi Arabia, Iran, the UAE, Egypt, and Ethiopia. The NDB, headquartered in Shanghai, China, with an authorized capital of $100 billion, was established by Brics nations to fund infrastructure and sustainable development projects in developing economies. The inaugural president of the NDB was India’s KV Kamath.
The Economic Coordination Committee (ECC) of Pakistan’s cabinet greenlit the country’s NDB membership in February, as per Dawn. The Finance Ministry of Pakistan stated that Aurangzeb solicited China’s endorsement for Pakistan’s NDB membership and welcomed increased investment from Chinese companies in vital sectors such as information and communication technology, agriculture, industry, and minerals.