BRICS Membership: Pakistan’s Economic Leap

The BRICS Summit 2024 in Kazan, Russia, is a major event in international relations and politics. Leaders from China, India, Iran, and other emerging economies will gather in Russia to discuss future cooperation prospects. The BRICS Summit is expected to host around 22 heads of state. Six leaders from international organizations will also attend. In total, 36 high-ranking officials are set to participate, according to a statement from the bloc. This makes BRICS membership a valuable diplomatic tool.

BRICS started as a coalition among Brazil, Russia, India, China, and South Africa to foster cooperation in 2006. Ever since the organization has become a driving force in global economic growth. The BRICS member states now account for around 37% of global GDP, compared to 29% by the G7, with projections that the gap will continue to widen, as per Putin’s projections​.

Putin Holds Key Bilateral Meetings with BRICS Leaders at Kazan Summit

On Tuesday, October 22, 2024, Russian President Vladimir Putin held five bilateral meetings on the sidelines of the event. He met with Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and South African President Cyril Ramaphosa. All three leaders represent the BRICS founding countries.

The talks in Kazan will mark the third face-to-face meeting between the heads of Russia and China this year. In May, Putin paid a state visit to China, and in July, he met with Xi on the sidelines of the SCO summit in Astana. Modi is visiting Russia for the second time this year, as Putin and the Indian leader last met in Moscow in July. 

Last year, the South African president visited Russia twice — as part of the group of leaders of the African Peace Initiative and during the second Russia-Africa summit in St. Petersburg. This year, Putin and Ramaphosa have spoken twice on the phone. 

Since Jan. 1, Russia has been chairing the BRICS under the motto of strengthening multilateralism for equitable global development and security. As part of its presidency, it will organize more than 200 political, economic, and social events. The central event is the summit in Kazan, which continues until Oct. 24.

Also See: How BRICS AND SCO Herald a New World Order

BRICS Membership: A Game Changer for Pakistan

With its growing economic influence and expanded membership, BRICS membership could be a game-changer for Pakistan in several key ways:

Economic Boost and Trade Opportunities

Joining BRICS would allow Pakistan to increase trade ties with fast-growing economies like China, Brazil, and South Africa. BRICS members account for 40% of global oil production and 42% of global grain production. This would not only reduce Pakistan’s overreliance on traditional Western markets but also diversify the unstable economy of Pakistan. The country’s resilience to global financial shocks and sanctions would also be improved.

Investment and Infrastructure

Through BRICS, Pakistan could benefit from investment in infrastructure, particularly through the BRICS New Development Bank (NDB). This institution, established to fund sustainable development projects in member countries, could provide financing for critical sectors in Pakistan, such as energy, transportation, and urban development. Unlike the IMF, the NDB provides financial assistance without imposing strict conditions, and no member can veto decisions based on economic size. It also allows borrowing in local currencies, crucial for Pakistan’s unstable reserves, and processes loans in under six months — much faster than other multilateral development banks. Such investment would alleviate Pakistan’s chronic infrastructure challenges and support long-term growth.

Geopolitical Leverage

Pakistan’s standing in global governance and geopolitics would reasonably improve by joining BRICS. Its historical reliance on Western-dominated institutions such as the IMF, and the World Bank would be significantly diminished. For example, in the recent $7 billion IMF bailout package for Pakistan, key financial contributions came from Saudi Arabia, China, and the UAE — all of which are BRICS member states. Membership in BRICS would allow Pakistan to negotiate on more equal terms with global powers and access development funds in different institutions without the stringent conditions typically attached to Western loans.

Strategic Partnership with China and Russia

Pakistan already enjoys strong strategic and economic ties with China, which is one of the leading BRICS members. Joining BRICS would further strengthen Pakistan’s cooperation with China in fostering cooperation in areas such as defence, technology, and energy. Pakistan could also deepen its partnership with Russia, which is keen on building stronger economic and military ties with South Asian countries to counter Western influence​.

Energy Security

As Pakistan struggles with energy shortages and high import costs, BRICS membership could help it tap into energy partnerships with resource-rich members like Russia and Brazil. This would improve Pakistan’s energy security and reduce its dependency on costly imports from volatile regions.

Reduced Influence of India in International Forums

India has previously blocked Pakistan’s entry into multilateral forums like BRICS. However, with the inclusion of Iran and other countries expanding BRICS, Pakistan’s candidacy could be reexamined more favourably. BRICS could provide Pakistan with a platform to counterbalance India’s influence, particularly in discussions on regional security and trade

BRICS 2024: Pakistan’s Membership Chances Amid SCO Developments

Russian Deputy Prime Minister Alexei Overchuk’s recent visit to Pakistan in September 2024 serves as a breadth of fresh air as he conveyed Russia’s support for Pakistan’s BRICS membership. Pakistan had formerly applied for BRICS membership in August 2023 to leverage the benefits of the grouping. However, its membership was not actualized due to India’s resistance. 

While Pakistan’s potential entry into BRICS is strategically significant, it is equally diplomatically challenging due to India’s likely opposition.

• The decision to induct new members into the BRICS bloc requires unanimous consent, and India has historically been resistant to Pakistan’s entry.
• India perceives both China and Pakistan as strategic threats, largely due to territorial disputes, including the China-Pakistan Economic Corridor, which runs through the Kashmir region.
• In the broader context of India’s recent regional setbacks, where pro-New Delhi governments have collapsed in Nepal, Sri Lanka, Maldives, and Bangladesh, New Delhi might reconsider its stance. 

A Path to Regional Cooperation and Mutual Gains

Pakistan’s BRICS membership would be a win-win situation for both India and Pakistan. 

It would allow India to improve its deteriorating diplomatic image, and engage more productively, particularly in multilateral settings like the SCO and BRICS, which are less politically charged than South Asian forums like SAARC. Russia’s role as a mutual partner and host of the BRICS summit could facilitate such engagement.

For Pakistan, joining BRICS would be a potential economic lifeline, offering access to the New Development Bank (NDB) and stronger trade ties with major economies. However, without normalizing ties with India, Pakistan’s BRICS membership bid faces a significant obstacle. India, for its part, could benefit from regional stability and improved relations with Pakistan, which may contribute to its broader geopolitical aspirations. Thus, while India’s opposition is likely, both countries stand to gain from dialogue and cooperation through BRICS.

SAT Commentaries’ are social media threads by various authors, reproduced here for website use. Views are their own.

SAT Commentary

SAT Commentaries, a collection of insightful social media threads on current events and social issues, featuring diverse perspectives from various authors.

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