As the rotating chair of the SCO, Pakistan will host the summit in the fall of 2024. Hosting the conference will allow Pakistan to demonstrate its commitment to regional cooperation and economic growth. Given Pakistan’s steadfast stance towards regional peace, stability and prosperity, the event will be a key opportunity for Pakistan to establish better commercial ties with member states as well as attract foreign direct investment (FDI) to its fragile economy. Located at the crossroads of South, Central and West Asia, Pakistan will prove to be of immense value to SCO member states in terms of regional trade and connectivity. This opportunity comes at a time when Pakistan is facing significant economic challenges including a looming debt crisis, inflation and slowing growth rate. By utilizing the SCO platform, Pakistan will be able to adequately showcase its potential, strengthen its economic ties with member states and attract much needed FDI for development projects. Indirectly, this will also boost regional trade and connectivity. Given Pakistan’s unique geography, economic potential and strategic importance, this article aims to highlight the growing importance of the SCO and the role it can play for a common future/destiny of peace and prosperity.
PM Sharif’s vision for the SCO+ summit
At the SCO+ summit in July 2024, Pakistani Prime Minister Shehbaz Sharif stressed the need for multilateralism, commitment to international law and the fight against terrorism. The prime minister called for genuine engagement with the Afghan Taliban to ensure that Afghanistan does not become a base of terrorism against other countries. His views reflect Pakistan’s strategic objective of supporting regional stability and peace. His speech at the SCO+ meeting was a clarion call for stringent and joint action against terrorism, which is a major threat to regional security. The prime minister stressed that multilateral cooperation is necessary to resolve security concerns. His words on the Afghan Taliban underscored the interconnectedness of peace and stability and regional security, reflecting that instability in one country can have far-reaching effects on others.
Trilateral Economic Cooperation and Financial Strategy
Pakistan proposed tripartite economic cooperation with Azerbaijan and Turkey. The initiative aims to strengthen economic and commercial ties between the three brotherly nations. He further proposed reviving the barter trading system with Russia to circumvent banking regulations, demonstrating a pragmatic response to contemporary global economic issues. The Prime Minister also called for a national currency for mutual settlements to prevent shocks caused by global financial fluctuations and ensure a stable and resilient regional economy. Such prudent and persuasive proposals, if implemented true to letter and spirit, could revolutionize the financial mosaic of the SCO region. These initiatives, which are part of a larger plan, can also be used to improve regional economic integration. Given the geopolitical positioning of the three countries, tripartite cooperation with Azerbaijan and Turkey remains crucial. There is no doubt that these countries will serve as trade hubs between Asia and Europe. Moreover, the barter trading system with Russia, reminiscent of past trade traditions, offers a means to circumvent the complexities of the current financial system, which is often affected by geopolitical conflicts.
The wider geopolitical context
The power of the SCO extends beyond its member states to influence global geopolitics. The organization is seen as a counterpart to Western-led international institutions seeking a multipolar world order. China and Russia’s leadership in the SCO indicates their strategic intent to weaken Western influence in their respective areas of interest. For Pakistan, aligning with the SCO’s goals means getting support from these great powers in economic and strategic fields. The SCO’s emphasis on autonomy, non-interference, and mutual benefit is aligned with Pakistan’s foreign policy objectives. This alignment provides a forum for Pakistan to voice its concerns and cooperate in shaping regional policies. Moreover, the SCO’s positions on important global issues such as terrorism and economic growth are aligned with Pakistan’s national goals.
The role of the SCO in political and economic issues
For China, the SCO complements its Belt and Road Initiative (BRI), which aims to improve global connectivity and economic integration. Russia, on the other hand, sees the SCO as a way to maintain its influence in Central Asia while countering Western geopolitical pressures. By aligning with regional powers, Pakistan can leverage their support to advance its own economic and security objectives. The SCO reflects the growing regional importance of China and Russia and provides a powerful platform for member countries to achieve their political and economic goals. Pakistan’s active participation in the SCO helps it address existing security challenges independently and through joint efforts, as well as strengthen its position in the region. This participation remains important for Pakistan given its location and the economic opportunities that regional cooperation offers.
Resurrecting the Ancient Silk Road: A New Era of Connections
In today’s political economy, restoring the ancient Silk Road is both economically and strategically viable. Restoring the Silk Road, especially through the facilitation of modern road and rail transport among SCO member states, can be a transformative approach towards regional connectivity. The potential for trade and economic alignment remains significant, and the SCO is uniquely positioned to shape the future economic environment of the region. The China-Pakistan Economic Corridor (CPEC), a flagship project of the BRI, is currently underway in Pakistan, with China playing a major role. The success of CPEC will have economic and geopolitical implications, positioning Pakistan as a key hub in the regional commercial network. CPEC can reshape Pakistan’s economic landscape by upgrading infrastructure, creating jobs, and expanding trade capacity. Projects include road, rail, and energy projects aimed at improving Pakistan’s connectivity with China and other member states of the BRI.
Challenges and opportunities
Despite the bright opportunities ahead, Pakistan’s cooperation with SCO member states remains fraught with difficulties. There are regional disruptors in the forum who pursue only their own interests at the expense of regional peace and stability and continue to plot against other countries, while there are also some unique problems within Pakistan. Domestic security remains a concern that needs to be addressed on priority. The economy needs to be resuscitated, social order permanently restored, and all signs of instability removed to create a favorable environment for foreign investment. Moreover, geopolitical conflicts such as the Afghanistan issue and the India-Pakistan rivalry could hinder the collective success of the SCO. However, there are more opportunities than problems. By actively engaging in the SCO, Pakistan can create a safer and more stable environment for economic development. The organization’s emphasis on counter-terrorism is in line with Pakistan’s security objectives. Moreover, SCO economic cooperation and integration may help Pakistan overcome its financial problems.
Conclusion
In summary, Pakistan’s active participation in the SCO is a deliberate move to channel regional cooperation into the nation’s interests, including resolving current economic and security concerns and positioning itself as a key actor in the region’s changing geopolitical landscape. The SCO’s objective of enhanced connectivity and economic integration will provide Pakistan with a path to stability and prosperity, paving the way for a brighter future.
