New Delhi:
A recent report argues that Pakistan’s fragile economy, ongoing political turbulence, and strong reliance on Western funding make it an unlikely fit for the New Development Bank (NDB).
The same Star Saturday analysis adds that the ongoing India‑Pakistan tensions act like a “cherry on top,” eroding confidence in Pakistan’s suitability and effectiveness as an NDB member.
Critics contend that Beijing may hesitate to champion Pakistan within BRICS, fearing the Pakistani government could become a liability because of its internal instability.
Experts note that Pakistan would still be able to tap into BRICS’s Contingent Reserve Arrangement (CRA) and benefit from the NDB’s comparatively relaxed lending terms once it joins.
However, easy access to loans without the strict oversight typical of institutions like the IMF may discourage Pakistan from pursuing necessary political or economic reforms.
In fact, evidence that IMF bailouts have successfully addressed Pakistan’s economic issues remains weak, which could expose BRICS to a “free rider” dilemma, creating significant moral‑hazard risks.
Consequently, the report warns that BRICS’s credibility and effectiveness could suffer in the eyes of potential new members and critics, potentially stalling its growth plans.
Since its inception with five founding members and subsequent addition of four new ones, the New Development Bank has strived to gather resources for infrastructure and sustainable development initiatives across emerging and developing economies (EMDCs) over the past decade.
The NDB has issued billions of dollars in bonds across China and other markets, and has approved a total of $39 billion in project financing up to 2024.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
