As the SCO’s rotating Chairman, Pakistan will host the Heads of Government Summit in Autumn of 2024. Hosting the Conference enables Pakistan to demonstrate its commitment to regional cooperation and economic growth. Given Pakistan’s steadfast approach towards regional peace, stability and prosperity, this event provides Pakistan with an important opportunity for establishing better commerce and trade relations with member states, besides attracting foreign direct investment (FDI) for its frail economy. Pakistan that lies at the cross roads of South Asia, Central Asia and West Asia, can prove to be of immense value for SCO member states from the standpoint of regional trade and connectivity. This opportunity comes at a time, when Pakistan is facing significant economic issues, such as a looming debt crisis, inflation, and a slowing growth rate. Using SCO’s platform, Pakistan may aptly showcase its potential, strengthen economic ties with member states and attract much-needed FDI for its developmental projects. In an indirect fashion, this will also boost regional trade and connectivity. This piece is meant to highlight the growing relevance of SCO and the role that Pakistan can play for a shared future / destiny of peace and prosperity, given its unique geography, economic potential and strategic relevance.
Prime Minister Shehbaz Sharif’s Vision at the SCO Plus Summit
At SCO Plus Summit in July 2024, Pakistan’s Prime Minister Shehbaz Sharif emphasized the need for multilateralism, commitment to international law and the fight against terrorism. He urged real engagement with the Afghan Taliban to guarantee that Afghanistan does not become a hub for terrorism against other countries. His views reflect Pakistan’s strategic goals of supporting regional stability and peace. His speech at SCO Plus moot was a clarion call for stern and joint actions against terrorism- a major danger to regional security. The PM emphasized the necessity of multilateral collaboration in solving the security concerns. His words regarding the Afghan Taliban underscored the interconnectedness of peace and stability with regional security, reflecting on how instability in one country may have far-reaching consequences for others.
Trilateral Economic Cooperation and Financial Strategies
Pakistan has suggested a trilateral economic cooperation with Azerbaijan and Turkey. This effort seeks to strengthen economic and commercial links between three brotherly nations. He further proposed resurrecting a barter trading system with Russia to circumvent banking restrictions, demonstrating a realistic approach to navigating contemporary global economic issues. The PM also called for national currencies for mutual settlements to prevent the shocks caused by global financial volatility, hence ensuring a stable and resilient regional economy. Such prudent and cogent recommendations, if implemented in true letter and spirit can be a game changer for the fiscal mosaic of the SCO region. These initiatives as part of a larger plan, can also be used for improving regional economic integration. Trilateral cooperation with Azerbaijan and Turkey remains important, considering geo-strategic positioning of three countries. Doubtlessly, these nations may act as trade hubs between Asia and Europe. Furthermore, the barter trading system with Russia, reminiscent of past trade traditions, provides a means to avoid complications of current financial systems, which are frequently impacted by geopolitical conflicts.
The Broader Geo-Political Context
The SCO’s power goes beyond its member states, affecting global geo-politics. The organization is viewed as a counterpart to Western-dominated international institutions, seeking a multipolar global order. China and Russia’s leadership in the SCO, demonstrates their strategic intentions of diminishing Western influence in their respective areas of interest. For Pakistan, aligning with the SCO’s goals entails garnering backing from these big nations in economic and strategic areas. The SCO’s emphasis on autonomy, non-interference, and mutual benefit remains consistent with Pakistani foreign policy goals. This alignment gives Pakistan a venue to express its concerns and help shape regional policy. Furthermore, the SCO’s positions on significant global issues, such as terrorism and economic growth, are consistent with Pakistan’s national objectives.
SCO’s Role in Political and Economic Agendas
For China, the SCO complements its Belt and Road Initiative (BRI), which seeks to improve global connectivity and economic integration. Russia, on the other hand, sees the SCO as a way to preserve its influence in Central Asia, while countering Western geo-political pressures. Pakistan, by associating with regional giants, can use their assistance to further its own economic and security objectives. The SCO provides a strong platform for its member states to achieve their political and economic goals, reflecting China’s and Russia’s emerging regional prominence. Pakistan’s active membership in the SCO, strives to strengthen its regional stature besides handling the existing security issues independently as well as through collaborative efforts. This participation remains critical for Pakistan, given its location and economic opportunities that regional cooperation provides.
Reviving the Ancient Silk Route: A New Era of Connectivity
In today’s political economy, the restoration of the ancient Silk Route is both economically and strategically viable. Its restoration through contemporary road and rail transport facilitation, particularly amongst SCO member nations, can be a transformational approach towards regional connectivity. The potential for trade and economic coordination remains to be enormous, putting the SCO in a unique position to shape the region’s future economic environment. The China-Pakistan Economic Corridor (CPEC), the BRI’s flagship project, is now ongoing in Pakistan, with major participation from China. Successful completion of CPEC will have economic and geo-political implications, positioning Pakistan as a key node in the regional commerce network. CPEC can reshape Pakistan’s economic landscape by upgrading infrastructure, creating employment, and increasing trading capacity. Project involves roadways, trains, and energy projects aimed at improving connectivity between Pakistan and China, and with other member nations of BRI.
Challenges and Opportunities
Despite bright opportunities in front, Pakistan’s cooperation with the SCO member nations remains fraught with difficulties. While there are regional spoilers in the forum, who only wish their axe to grind at the cost of regional peace and stability and continue to conspire against other nations, there are some issues, peculiar to the domestic environment of Pakistan as well. Internal security remains to be a concern that eeds to be tackled on priority, once and for all. Economy needs to be resuscitated, social order needs to be fixed on sustained grounds and all signs of instability to be removed for a conducive environment for foreign investment. Additionally, geo-political conflicts, like Afghan issue and row between India and Pakistan, may inhibit SCO’s collective success. However, the opportunities exceed the problems. By actively engaging in the SCO, Pakistan can create a safer and stable environment for economic progress. The organization’s emphasis on countering terrorism is consistent with Pakistan’s security aims. Furthermore, the SCO’s economic cooperation and integration might help Pakistan overcome its fiscal issues.
Conclusion
To summarize, Pakistan’s proactive participation in the SCO is a deliberate move to leverage regional collaboration for national gain. This includes solving current economic and security concerns and establishing itself as a significant actor in the region’s changing geopolitical scene. The SCO’s objective of increased connectivity and economic integration provides Pakistan with a road to stability and prosperity, paving the way for a brighter future.