Comprehensive Analysis of BRICS:

Importance, Initiatives, Western and

American Perspectives, Opportunities for
Pakistan, and Key Takeaways from the 2025
Summit

July 14, 2025

Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Importance of BRICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Key Steps and Initiatives Taken by BRICS . . . . . . . . . . . . . . . . 2

3.1 New Development Bank (NDB) . . . . . . . . . . . . . . . . . . . . . . . 3
3.2 Contingent Reserve Arrangement (CRA) . . . . . . . . . . . . . . . . . . 3
3.3 Other Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Western and American Perspectives . . . . . . . . . . . . . . . . . . . . . 4

4.1 Western Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.2 American Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Opportunities for Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Key Takeaways from the 17th BRICS Summit (Rio de Janeiro, July
6–7, 2025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7 Challenges and Future Outlook . . . . . . . . . . . . . . . . . . . . . . . . 6

8 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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1 Introduction
BRICS, an acronym for Brazil, Russia, India, China, and South Africa, is a coalition of
major emerging economies formed in 2006 (initially as BRIC, with South Africa joining
in 2010). The bloc expanded in 2024 to include Egypt, Ethiopia, Iran, and the United
Arab Emirates, with Indonesia joining as the first Southeast Asian member in January
2025. The term “BRICS+” reflects this expanded membership. Representing approxi-
mately 45% of the global population and 37.3% of global GDP, BRICS aims to enhance
economic cooperation, promote multilateralism, and challenge the Western-dominated
global financial and political order. This analysis explores BRICS’ importance, key ini-
tiatives like the New Development Bank (NDB) and Contingent Reserve Arrangement
(CRA), Western and American perspectives, opportunities for Pakistan, and key take-
aways from the 17th BRICS Summit held in Rio de Janeiro, Brazil, on July 6–7, 2025.

2 Importance of BRICS
BRICS serves as a significant platform for emerging economies to assert their influence
in global governance, particularly as a counterbalance to Western-led institutions like the
G7, International Monetary Fund (IMF), and World Bank. Its importance lies in the
following areas:
• Economic Influence: BRICS accounts for over 37% of global GDP (surpassing the
G7’s 29.3%) and 45% of the world’s population, making it a formidable economic
bloc. With members like China (contributing ∼70% of BRICS’ GDP) and India, it
represents a significant share of global economic growth.
• Energy Security: The inclusion of Iran, the UAE, and potentially Saudi Arabia po-
sitions BRICS to control approximately 44% of global crude oil production, enhancing
its influence over energy markets and supply chains.
• Voice of the Global South: BRICS advocates for the interests of developing nations,
addressing issues like inequality, underrepresentation in global institutions, and the
need for reforms in bodies like the UN Security Council, IMF, and World Bank. It
provides a platform for non-Western nations to engage in dialogue and foster South-
South cooperation.
• Geopolitical Significance: BRICS offers a neutral space for dialogue, even during
bilateral tensions (e.g., India-China border disputes). It has become a counterweight
to Western influence, particularly amid geopolitical shifts like Russia’s invasion of
Ukraine and Western sanctions.
• De-dollarization Efforts: BRICS promotes reducing reliance on the U.S. dollar
through trade in local currencies and exploring a potential common currency, chal-
lenging the dollar’s dominance in global transactions.

3 Key Steps and Initiatives Taken by BRICS

BRICS has undertaken several initiatives to strengthen its economic and political coop-
eration, with the New Development Bank and Contingent Reserve Arrangement being
the most prominent.

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3.1 New Development Bank (NDB)
• Establishment and Purpose: Established in 2015 and headquartered in Shanghai,
China, the NDB is a multilateral development bank designed to finance infrastructure
and sustainable development projects in BRICS and other emerging markets and de-
veloping countries (EMDCs). It aims to provide an alternative to the World Bank,
with a focus on South-South cooperation and fewer conditionalities.
• Capital and Operations: The NDB has an initial subscribed capital of $50 billion
and paid-in capital of $10 billion, making it one of the largest multilateral development
banks. It has approved over 70 projects worth approximately $30 billion since 2015,
including $6.9 billion in loans to India. The bank prioritizes climate-smart, disaster-
resilient, and socially inclusive projects aligned with the Sustainable Development
Goals (SDGs) and the Paris Agreement.
• Local Currency Lending: The NDB is expanding loans in local currencies (targeting
30% of financing in members’ currencies) to reduce exposure to U.S. dollar volatility
and Western sanctions. This is particularly significant for countries like Russia and
Egypt facing foreign reserve challenges.
• Leadership and Challenges: The NDB’s presidency rotates among member states,
with Brazil’s Dilma Rousseff currently leading. Russia will appoint a new president in
July 2025, with expectations of a strong, geopolitically astute leader to enhance the
bank’s impact. However, the NDB remains undercapitalized compared to the World
Bank, which disbursed three times more in 2021 alone.

3.2 Contingent Reserve Arrangement (CRA)

• Establishment and Purpose: The CRA, established in 2015 via the Treaty signed
in Fortaleza, Brazil, in 2014, is a financial safety net to address short-term balance-
of-payments crises among BRICS members. It competes with the IMF by providing
liquidity without stringent conditionalities.
• Structure and Funding: The CRA has a total capital of $100 billion, with con-
tributions from member states (China: $41 billion, Brazil/India/Russia: $18 billion
each, South Africa: $5 billion). It operates as a self-insurance mechanism, allowing
members to access funds during liquidity crises.
• Reforms and Non-Dollar Focus: Recent efforts aim to include non-dollar curren-
cies in the CRA to enhance flexibility during financial crises, aligning with BRICS’
de-dollarization goals. However, its reliance on IMF decisions for some funding limits
its autonomy.
• Impact: The CRA supports financial stability in emerging economies facing global
economic volatility, but its scale and influence remain limited compared to the IMF.

3.3 Other Initiatives

• BRICS Cross-Border Payment System: Aimed at facilitating trade in local cur-
rencies, this system seeks to reduce reliance on the U.S. dollar and bypass Western-
dominated systems like SWIFT. Russia, excluded from SWIFT, sees it as a financial
lifeline, while others like India and Brazil pursue cautious diversification.

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• BRICS Grain Exchange: Proposed to enhance food security by coordinating agri-
cultural trade among members, leveraging their 42% share of global grain production.
• BRICS Clear: An initiative to develop an independent cross-border settlement and
depository infrastructure to complement existing financial systems.
• Space and Technology Cooperation: BRICS has established a Remote Sensing
Satellite Constellation with six satellites and proposed a space exploration consortium.
It also promotes joint R&D in AI, semiconductors, and green technology through a
potential BRICS+ Digital Alliance.
• Cultural and Soft Power Initiatives: Proposals include a BRICS+ University
Network for student exchanges and visa-free tourism blocs to strengthen people-to-
people ties.

4 Western and American Perspectives

Western and American views on BRICS are mixed, reflecting both concern and skepticism
about its growing influence.

4.1 Western Perspective

• Alternative to G7 Institutions: Some Western analysts view BRICS institutions
like the NDB and CRA as alternatives to the G7-led World Bank and IMF, challenging
the Western-centric global financial order. The bloc’s expansion and energy profile
(44% of global oil production) amplify concerns about its potential to influence global
markets.
• Anti-Western Sentiment: While BRICS is not inherently anti-Western, its push
to constrain Western hegemony—evident in de-dollarization efforts and criticism of
Western sanctions—raises fears of a shift toward a multipolar world. The inclusion of
nations like Iran and Russia, facing Western sanctions, fuels perceptions of BRICS as
an anti-Western bloc.
• Skepticism on Cohesion: Many Western analysts argue that BRICS lacks coher-
ence due to internal divisions (e.g., Sino-Indian rivalry, Saudi-Iran tensions) and faces
challenges in achieving ambitious goals like de-dollarization or creating a common cur-
rency. The NDB and CRA are seen as underperforming compared to their Western
counterparts.
• Geopolitical Concerns: The 2024 Kazan Summit’s success in showcasing Russia’s
non-isolation despite Western sanctions highlighted BRICS’ role as a platform for
non-Western engagement, causing unease in the West. The bloc’s criticism of Western
policies, such as support for Israel’s actions in Gaza, further strains relations.

4.2 American Perspective

• Anti-American Narrative: Some U.S. policymakers, including former President
Donald Trump, have labeled BRICS policies as “anti-American,” particularly due to
its de-dollarization efforts and Russia’s leadership in 2024. The bloc’s expansion and
China’s dominance (70% of BRICS’ GDP) raise concerns about a Chinese-led challenge

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 to U.S. financial dominance.
• Economic Threat: The U.S. views BRICS’ push for local currency trade and alter-
native financial systems (e.g., China’s CIPS) as a potential threat to the dollar’s role
as the global reserve currency. However, analysts note that the dollar’s entrenched
position and the lack of infrastructure for non-dollar transactions limit this threat in
the short term.
• Strategic Rivalries: The U.S. is wary of BRICS’ growing geopolitical clout, espe-
cially as it provides a platform for Russia and China to harness anti-Western sentiment
amid issues like the Gaza conflict and Western sanctions. The inclusion of Iran and
potential Saudi membership further complicates U.S. strategic interests in the Middle
East.
• Dismissal of Impact: Some American analysts downplay BRICS’ effectiveness,
citing its inability to create a viable alternative to Western institutions or rewrite
global trade rules. The bloc’s internal contradictions and reliance on consensus-based
decision-making are seen as barriers to cohesive action.

5 Opportunities for Pakistan

Pakistan applied for BRICS membership in November 2023, with support from Russia
but lacking unanimous backing, particularly from India due to bilateral tensions. Despite
not being a member, BRICS offers several opportunities for Pakistan:
• Economic Benefits via NDB: If admitted, Pakistan could access NDB loans in
local currencies, which are approved faster (within six months) than those from other
multilateral banks. This is crucial for Pakistan’s volatile foreign reserves and struggling
sectors like energy and food production.
• Trade and Investment: BRICS members account for 40% of global oil production
and 42% of global grain production, offering Pakistan opportunities to strengthen
trade ties and secure energy and food supplies. Membership could boost investment
in infrastructure and sustainable development.
• Geopolitical Leverage: BRICS provides a platform for Pakistan to engage with
major powers like China and Russia, enhancing its geopolitical standing. It could also
offer a neutral space for dialogue with India, potentially easing tensions and reviv-
ing regional cooperation akin to the moribund South Asian Association for Regional
Cooperation (SAARC).
• De-dollarization and Financial Resilience: Access to the CRA and BRICS Cross-
Border Payment System could help Pakistan mitigate the impact of global financial
pressures and U.S. sanctions, fostering financial resilience through local currency trans-
actions.
• Challenges: India’s opposition poses a significant hurdle, as BRICS membership
requires unanimous consent. Pakistan’s inclusion could exacerbate internal rivalries
within BRICS, particularly given India’s strategic concerns and its role in the Quad.

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6 Key Takeaways from the 17th BRICS Summit (Rio
de Janeiro, July 6–7, 2025)
The 17th BRICS Summit, themed “Strengthening Global South Cooperation for More
Inclusive and Sustainable Governance,” highlighted the bloc’s growing influence and in-
ternal challenges. Key takeaways include:
• Condemnation of Terrorism: The summit adopted a resolution condemning the
April 22, 2025, terrorist attack in Jammu and Kashmir, emphasizing zero tolerance for
terrorism, including cross-border activities, financing, and safe havens. While Pakistan
was not named, Indian sources interpreted the statement as targeting Islamabad,
reflecting India’s influence but also tensions with Pakistan’s allies (China, Iran).
• Global Governance Reforms: The Rio de Janeiro Declaration reiterated BRICS’
commitment to reforming global institutions like the UN Security Council, IMF, and
World Bank to enhance representation of the Global South. The bloc criticized uni-
lateral coercive measures (e.g., Western sanctions) for disrupting global trade and
sustainable development.
• Economic Cooperation: Leaders emphasized boosting trade in local currencies,
strengthening the NDB, and exploring initiatives like the BRICS Grain Exchange and
BRICS Clear. The NDB’s focus on local currency lending was highlighted as a step
toward financial autonomy.
• Energy and Sustainability: With new members contributing to 44% of global oil
production, BRICS aimed to enhance energy security. However, tensions emerged over
the shift to green energy, with China, India, and Brazil prioritizing renewables, while
Russia and Iran focus on fossil fuels.
• Geopolitical Tensions: The absence of Chinese and Russian leaders from the summit
underscored internal divisions and logistical challenges. The declaration avoided strong
positions on conflicts like Ukraine due to differing member views, highlighting the
difficulty of achieving consensus in an expanded bloc.
• Expansion and Partner Countries: Indonesia’s participation as a full member
and the inclusion of partner countries (Belarus, Bolivia, Kazakhstan, Cuba, Malaysia,
Nigeria, Thailand, Vietnam, Uganda, Uzbekistan) underscored BRICS’ growing global
footprint. However, the lack of clear membership criteria risks diluting cohesion.
• Innovation and Soft Power: Proposals for a BRICS+ Digital Alliance and Univer-
sity Network signaled a focus on technology and cultural exchange, aiming to reduce
Western dependency in AI, semiconductors, and green tech while fostering people-to-
people ties.

7 Challenges and Future Outlook

BRICS faces several challenges that could hinder its effectiveness:
• Internal Divisions: Sino-Indian rivalry, Saudi-Iran tensions, and differing views on
the West (e.g., Brazil, India, and South Africa’s non-aligned stance vs. Russia and
Iran’s anti-Western rhetoric) complicate consensus-based decision-making.

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• China’s Dominance: China’s economic weight (70% of BRICS’ GDP) creates an
imbalance, raising concerns among members like India about a Chinese-led bloc.
• Limited Institutional Capacity: The NDB and CRA lack the scale and partner-
ships of Western institutions, and the absence of a permanent secretariat weakens
BRICS’ operational framework.
• De-dollarization Hurdles: Efforts to reduce dollar reliance face significant chal-
lenges due to the dollar’s entrenched role, limited convertibility of currencies like the
renminbi, and insufficient financial infrastructure.
Despite these challenges, BRICS’ expansion and focus on economic and geopolitical co-
operation position it as a key player in shaping a multipolar world. India’s chairmanship
in 2026 will be crucial for addressing internal contradictions and advancing a cohesive
vision for the Global South.

8 Conclusion
BRICS has emerged as a significant platform for emerging economies, promoting South-
South cooperation and challenging Western dominance through initiatives like the NDB
and CRA. While the West and the U.S. view it with a mix of concern and skepticism,
its growing membership and energy profile enhance its global influence. For Pakistan,
BRICS offers economic and geopolitical opportunities, though membership hinges on
overcoming India’s opposition. The 2025 Summit underscored BRICS’ ambitions for
global governance reform and economic integration but highlighted the need to address
internal divisions to realize its potential. As BRICS evolves, its ability to foster unity
and deliver tangible outcomes will determine its role in the global order.