Is Pakistan's Weak Economy and Dependence on the West Hindering Its NDB Membership?
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Synopsis
Pakistan's economic vulnerabilities and political instability raise doubts about its suitability for NDB membership, according to recent analysis. As the country grapples with its dependence on Western funding, concerns mount over its ability to contribute effectively to international development initiatives.
Key Takeaways
- Pakistan's economy is currently weak and unstable.
- The country is heavily reliant on Western financing.
- Political instability raises doubts about its viability as an NDB member.
- The India-Pakistan conflict further complicates its situation.
- BRICS may face risks if Pakistan joins without addressing its internal issues.
New Delhi, Nov 22 (NationPress) Pakistan's fragile economy, coupled with political turmoil and a significant reliance on Western financial assistance, renders it an unsuitable candidate for membership in the New Development Bank (NDB), according to a recent report.
This report from Star Saturday highlighted that the ongoing India-Pakistan conflict further diminishes the trust in Pakistan's potential as a viable and effective member of the NDB.
Critics argue that Beijing might not advocate strongly for Pakistan, as BRICS members could be concerned that Islamabad may become a burden due to its internal strife, the report noted.
Experts suggest that if Pakistan were to gain membership, it could access the BRICS’s Contingent Reserve Arrangement (CRA) and benefit from the more flexible loan conditions offered by the NDB.
However, easy access to loans without a strict oversight mechanism, such as that of the IMF, could discourage Pakistan from pursuing essential political or economic reforms.
Currently, there is no substantial evidence that IMF bailouts are being effectively utilized to address Pakistan's economic challenges. Consequently, BRICS risks encountering a free-rider issue, leading to a significant liability and a moral hazard problem.
This situation may undermine BRICS's credibility and effectiveness in the eyes of potential new members and skeptics, negatively affecting its expansion, the report cautioned.
With five founding members and the addition of four new members, the NDB has focused on mobilizing resources for infrastructure and sustainable development initiatives in emerging markets and developing countries (EMDCs) over the past decade.
To date, the NDB has raised billions through bond issuances in China and other markets, approving a total of $39 billion in project financing by 2024.
Point of View
It's essential to acknowledge that while Pakistan's situation presents significant challenges, understanding the broader implications for international finance and development is crucial. The complexities of its economic landscape require a nuanced approach that promotes stability and growth, aligning with national interests.
NationPress
22/11/2025
Frequently Asked Questions
Why is Pakistan considered a poor fit for the NDB?
Pakistan's weak economy, political instability, and dependence on Western financing make it an unsuitable candidate for effective participation in the NDB.
What are the concerns regarding NDB membership for Pakistan?
There are concerns that Pakistan may become a liability for BRICS members, especially given its internal disruptions and reliance on external financial assistance.
What is the BRICS Contingent Reserve Arrangement?
The BRICS Contingent Reserve Arrangement is a framework aimed at providing financial support to member countries during times of economic distress.
How much project financing has the NDB approved?
As of 2024, the NDB has approved a total of $39 billion in project financing.
What risks does BRICS face with Pakistan's potential membership?
BRICS risks facing a free-rider problem and potential moral hazard, which could undermine its credibility and effectiveness.
