Pakistan’s active participation in the Shanghai Cooperation Organization aims to leverage regional cooperation for economic growth and stability.

As the rotating head of the SCO, Pakistan will host the organization’s summit later this year. Given Pakistan’s steadfast approach towards regional peace, stability, and prosperity, this event provides an important opportunity to establish better commerce and trade relations with member states, besides attracting foreign direct investment (FDI) for its frail economy. Pakistan, lying at the crossroads of South Asia, Central Asia, and West Asia, can prove immensely valuable 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.

In July, Pakistan’s Prime Minister, Shehbaz Sharif, emphasized during a speech 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. His speech was a clarion call for stern and joint actions against terrorism—a major danger to regional security.

Pakistan has suggested trilateral economic cooperation with Azerbaijan and Turkey. This effort seeks to strengthen economic and commercial links between the three countries. 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.

The SCO’s power goes beyond its member states, affecting global geopolitics. 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 demonstrate 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.

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 geopolitical 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 and Russia’s emerging regional prominence.

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 among SCO member nations, can be a transformational approach towards regional connectivity. The potential for trade and economic coordination remains 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 geopolitical implications, positioning Pakistan as a key node in the regional commerce network.

Despite the bright opportunities ahead, Pakistan’s cooperation with the SCO member nations remains fraught with difficulties. While there are regional spoilers in the forum who wish to exploit 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 a concern that needs to be tackled, once and for all. The economy needs to be resuscitated, social order needs to be fixed on sustained grounds, and all signs of instability need to be removed for a conducive environment for foreign investment. Additionally, geopolitical conflicts, like the Afghan issue and the 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 more 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.

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.