Pakistan Pursues China’s Backing to Join BRICS Development Bank Initiative

Pakistan Seeks China’s Backing for BRICS Bank Membership, Secures IMF Validation

Islamabad is actively strengthening financial ties with key global partners as it navigates economic reforms and seeks broader international cooperation.

Published: October 17, 2025

Strategic Push for BRICS Membership

Pakistan’s Finance Minister, Muhammad Aurangzeb, recently engaged in high-level discussions with China’s Deputy Finance Minister, Liao Min, in Washington, D.C. The primary focus of their meeting was to garner support for Pakistan’s submission to join the New Progress Bank (NDB), established by the BRICS nations – Brazil, Russia, India, China, and South Africa. This initiative comes after Pakistan’s cabinet approved its membership in February, signaling a strong desire to integrate further into the BRICS economic framework.

Aurangzeb also used the possibility to encourage increased investment from Chinese companies across vital sectors, including Facts and Dialog Technology (ICT), agriculture, manufacturing, and the mineral industry. This reflects Pakistan’s broader strategy to diversify its economic partnerships and attract foreign capital.

IMF Agreement and Economic Reforms

The Finance Minister informed his Chinese counterpart about Pakistan’s recently reached staff-level agreement with the International Monetary Fund (IMF). He characterized this agreement as a significant endorsement of the goverment’s ongoing economic rehabilitation efforts. This milestone provides crucial external validation and boosts investor confidence in Pakistan’s economic trajectory.

Discussions also covered the progress of issuing a panda Bond in the Chinese market,a move expected to further enhance Pakistan’s access to international financial instruments.

Bilateral Engagements and Regional Cooperation

Aurangzeb’s diplomatic efforts extended beyond China, including productive meetings with U.S. Congressman French Hill, Chairman of the House Financial Services Committee. These discussions centered on bolstering Pakistan-U.S. economic and financial collaboration, specifically in areas like digital financial services, the new economy, mineral resource development, and IT partnerships.

Further, the Minister engaged with representatives from Bangladesh and Japan, and participated in seminars hosted by the world Economic Forum (WEF) and JP Morgan. At the WEF dialogue on “Leveraging Innovation for Inclusive and Enduring Growth,” he emphasized the importance of aligning technological advancements with inclusive and resilient strategies,highlighting the role of Artificial Intelligence in boosting efficiency and productivity. He cited the use of satellite imagery to improve farmer incomes as a prime example.

Investment and sectoral Focus

Addressing investors at a JP Morgan seminar, Aurangzeb presented a positive outlook for Pakistan’s economy, attributing its momentum to sound macroeconomic management and increased stability in both the fiscal and external sectors. The Minister also engaged with the Japan Bank for International cooperation (JBIC), receiving a commitment from JBIC to participate in the lending group for the Reko Diq mining project, demonstrating continued foreign investor interest in Pakistan’s resources.

In a separate meeting with Bangladesh’s special Envoy, Lutfey Y Siddiqi, the Minister reaffirmed Pakistan’s commitment to strengthening regional economic ties. He also held conversations with Bloomberg media, further disseminating Pakistan’s economic narrative to a global audience.

recent developments & Past Engagements

The series of meetings held by the finance minister is scheduled to conclude tomorrow. Previous engagements included talks with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, focusing on the privatization of Pakistan International Airlines (PIA) and key airports. Earlier in the week,Aurangzeb participated in discussions at the Atlantic Council,outlining Pakistan’s approach to economic reforms,disaster response,and private-sector-led growth.He also met with S&P Global representatives, acknowledging their recent positive ratings action.

Partner	Key Discussion Points
China	BRICS NDB Membership,Increased Investment in Key Sectors
United States	Digital Financial Services,IT Partnerships,Economic Cooperation
Japan	JBIC’s participation in Reko Diq project,Investor Confidence
Saudi arabia	Privatization of PIA and Airports,Trade and Investment Relations

Understanding the New Development Bank (NDB)

The NDB,often referred to as the BRICS Development Bank,was established in 2015 to provide financial assistance for infrastructure and sustainable development projects in BRICS countries and other emerging economies. With a focus on collaborative funding, the NDB aims to reduce reliance on traditional Western-dominated financial institutions. Learn more about the NDB’s mission and operations.

Did You Know? The NDB has already funded over 80 projects across its member states, impacting millions of lives through improved infrastructure and sustainable development initiatives.

Pro Tip: Countries seeking to join the NDB must align their economic development goals with the bank’s focus areas, demonstrating a commitment to sustainable and inclusive growth.

Frequently Asked Questions about Pakistan and the NDB

• What is the primary benefit of Pakistan joining the NDB? Joining the NDB offers Pakistan access to a new source of funding for infrastructure projects and sustainable development initiatives, reducing dependence on traditional lenders.
• How does Pakistan’s IMF agreement impact its relationship with the NDB? The IMF agreement demonstrates fiscal responsibility and economic stability, making Pakistan a more attractive candidate for NDB membership and investment.
• What sectors will benefit most from increased Chinese investment in Pakistan? Key sectors include Information and Communication Technology (ICT), agriculture, manufacturing, and the mineral industry, creating jobs and driving economic growth.
• What is a Panda Bond and why is it important for Pakistan? A Panda Bond is a yuan-denominated bond sold by an entity in China,providing Pakistan with access to the Chinese bond market and diversifying its funding sources.
• How does Pakistan plan to strengthen economic ties with the United States? Through enhanced collaboration in digital financial services,the new economy,mineral resource development,and information technology.

What are your thoughts on Pakistan’s economic strategy? Share your comments below!

What potential benefits could Pakistan gain from accessing funding through the New Development Bank compared to customary lenders like the IMF?

The Strategic Importance of BRICS Membership for pakistan

Pakistan is actively seeking China’s support to become a member of the New Development Bank (NDB), commonly known as the BRICS Development Bank. This initiative represents a important shift in Pakistan’s economic adn geopolitical strategy, aiming to diversify funding sources beyond traditional lenders and strengthen ties with influential emerging economies. The BRICS economic bloc – comprising Brazil, Russia, India, China, and south Africa – offers a compelling choice for infrastructure development and economic growth. Pakistan’s potential membership hinges largely on securing China’s endorsement, given China’s prominent role within the BRICS framework and its longstanding strategic partnership with Pakistan. this pursuit is driven by Pakistan’s current economic challenges,including a balance of payments crisis and a need for substantial investment in key sectors.

Understanding the New Development Bank (NDB)

The NDB was established in 2015 with the goal of funding infrastructure and enduring development projects in BRICS nations and other emerging economies. Key features of the NDB include:

* Alternative funding: Provides an alternative to the world bank and International Monetary Fund (IMF).

* Focus on Infrastructure: Prioritizes projects in energy, transportation, water management, and digital communication.

* Sustainable Development Goals (SDGs): Aligns its funding with the UN’s SDGs, promoting environmentally and socially responsible projects.

* Local Currency Financing: Increasingly offers loans in local currencies, reducing exchange rate risks for borrowing countries.

* Governance Structure: Each BRICS nation holds equal voting rights, ensuring a balanced decision-making process.

China’s role as a Key Advocate

China’s support is crucial for Pakistan’s BRICS NDB aspirations. Several factors underpin this dynamic:

* China-Pakistan Economic Corridor (CPEC): the success of CPEC demonstrates china’s commitment to Pakistan’s economic development. Extending this collaboration to the NDB is a logical progression.

* strategic Alignment: Both countries share a common interest in challenging the existing global financial order and promoting a multipolar world.

* Belt and Road Initiative (BRI): Pakistan’s participation in BRI aligns with the NDB’s focus on infrastructure development, creating synergies for potential joint projects.

* Diplomatic Efforts: Pakistani officials have consistently engaged with their Chinese counterparts to garner support for its NDB membership bid. Recent high-level meetings have focused specifically on this issue.

Potential Benefits for Pakistan

Joining the BRICS Development Bank could unlock significant benefits for Pakistan:

* Increased Investment: Access to NDB funding for critical infrastructure projects, addressing Pakistan’s infrastructure deficit. Sectors like energy, transportation, and water resources would be prime candidates.

* Diversified Funding Sources: Reducing reliance on traditional lenders like the IMF and World Bank, offering greater financial autonomy.

* Economic Growth: Stimulating economic activity through infrastructure development and job creation.

* Enhanced Regional Cooperation: Strengthening ties with other BRICS nations, fostering trade and investment opportunities.

* Currency Stability: Potential access to local currency financing, mitigating exchange rate risks and bolstering the Pakistani Rupee.

Challenges and Considerations

Despite the potential benefits, Pakistan faces several challenges in its pursuit of BRICS membership:

* India’s Opposition: India, a key BRICS member, has historically been hesitant to support Pakistan’s inclusion due to geopolitical tensions. overcoming this opposition is a major hurdle.

* Economic Reforms: The NDB may require Pakistan to implement certain economic reforms to ensure fiscal responsibility and project viability.

* Governance and Transparency: Maintaining high standards of governance and transparency in NDB-funded projects will be essential to avoid corruption and ensure effective implementation.

* Geopolitical Landscape: The evolving geopolitical landscape and shifting alliances within the BRICS framework could influence Pakistan’s prospects.

* Competition from Other Applicants: several other countries are also vying for BRICS membership, increasing the competition for limited resources.

Recent Developments & Timeline

In August 2023, BRICS nations agreed to expand the bloc, inviting Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates to join. while Pakistan wasn’t included in this initial expansion, the door remains open for future consideration.Pakistan continues to actively lobby for membership, emphasizing its strategic importance and economic potential. Recent statements from Pakistani officials indicate ongoing discussions with China regarding a renewed push for membership in 2024/2025.The timeline for a potential decision remains uncertain, dependent on both internal BRICS dynamics and Pakistan’s progress in addressing the aforementioned challenges.

Pakistan’s Economic Situation & the Need for New Funding Avenues

Pakistan’s current economic situation necessitates exploring alternative funding sources. The country is grappling with:

* High Debt levels: A substantial external debt burden, limiting fiscal space for development projects.

* Balance of Payments Crisis: Recurring balance of payments deficits, requiring frequent bailouts from the IMF.

* Low Foreign Exchange Reserves: Depleted foreign exchange reserves,