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Pakistan's Economy in the Context of BRICS: Opportunities and Challenges
Abdul Aziz
In the current period Global economic and Geopolitical atmosphere is in shifting pattern however, the BRICS consists of Brazil, Russia, India, China, and South Africa projects itself as a sign of global power structure, challenging the existing traditional dominance of western economics. Originally this group of alliance was found in 2006 along five members but in 2024 this group expended and persuaded many states to join. Moreover, the population of BRICS around 3.5 billion and global economic GDP about 28% so, quarter of world GDP covered by BRICS members. At the end of 2022, BRICS had contributed and invested around $32 billion toward emerging nations for their infrastructure, development as well as technology respectively. On the hand, Pakistan still remains out of the group even though BRICS is launched by China and throughout his ambitious to extend it through BRI belt and road imitative. Additionally, under BRI the project of CPEC geographically and strategically is very paramount and significant as a gateway to Central Asian countries nonetheless, this project plays a valuable worth if they sideline the regional politics and appreciated the Pakistan. In this context, Pakistan will take many advantages from BRICS regardless of fact Pakistan will also face numerous challenges in the appearance of India, terrorism and domestic issues.
Firstly, Pakistan will participate in global economic because BRICS members are dominating in economics in upcoming period at this stage Pakistan’s CPEC project offers several opportunities to these countries in terms of win-win situation. Secondly, Pakistan would be enjoying new trade patterns by reason of BRICS they established vital institutions such as contingent Reserve Arrangement (CRA) and New Development Bank (NDB). Additionally, CRA assist members in tackling the short-term balance of payment crisis. Meanwhile, the NDB support member states in terms of funding on different projects without imposing rigorous and stringent policy ordinarily affiliated with institution like International Monetary Fund (IMF). Thirdly, traditionally since independence Pakistan’s foreign policy mainly alignment with western countries however, at this edge Pakistan associates themselves with BRICS providing diversify in foreign policy objectives. On contrary, Pakistan also has some challenges in the game of BRICS. India and Pakistan both are engage in long rivalry because of Kashmir territory however, both countries involved in skirmish across the border. In this case, Delhi curtails and influence other members to abandon the application of Pakistan. Because India assure BRICS members that Pakistan have eliminate the terrorism before joining the bloc. Moreover, both countries presence in same block creates more hurdle in terms of cooperation and development.
In addition to this, Pakistan’s probe candidature become very fragile mostly reliant on USA further, dependence on international monetary fund underscored by Pakistan’s economic struggle and frequently request for assistance from IMF because in recent period Pakistan faced inflation over 35% to get rid of this chaotic environment he went to IMF bailout. More importantly by joining BRICS bloc where Russia and China both are already adversary of western countries its kind work as a pour fuel to the fire, However, at this juncture Pakistan must obtained neutral foreign policy toward both groups. Apart from the external facts, internal political instability as well as staggered economic circumstance a barrier to join the bloc. Evidently BRICS members economically are more advance and competitive in this scenario for Pakistan its very challenging to make his place between members states.
To sum the whole discussion, by joining BRICS Pakistan could grasp benefits in terms of economics and diplomatic leverage however, the path for Pakistan toward BRICS is quite challenging and long one however, at one side Pakistan avoid geopolitical rivalry with India for regional cooperation and maintain good bilateral relation with India. Also, Pakistan needs to propelled from pre phase (west) to post phase (East).
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Abdulaziz is student of BS International Relations at the University of Central Punjab, Pakistan. He has a passion for exploring global issues, particularly in the areas of conflict resolution, international security, and diplomacy.