INFUSING spirit of unity, peace and development across the region with cherishing the status of a responsible global leader, China has transformed Shanghai Cooperation Organization (SCO) as the best therapy to cure regional economic crunches, security challenges cultural gaps, people to people concerns and mutual development crisis. Since its inception till game-changing SCO summit being held on October 15-16 in Pakistan, by virtue of China’s anchoring stimulus, SCO member states have been witnessing inclusive trade growth, infrastructure upgradation, security improvement and sustainable development upbeat in diverse sphere of life.
At the time when developing countries had lost hope to keep pace with world and plunged into whirlpool of mayhem due to vested interests of superpowers, China came up with guiding light of the SCO that navigated SCO member states that cover about three-fifths of the Eurasian continent, with a combined population of about a half of the world’s total, to grow and thrive as one united force on the basis of equity, respect, brotherhood. Economic cooperation has always been an important element of SCO cooperation. Since the establishment of the SCO, the member states have been actively integrating into global trade cooperation despite global headwinds. “The Report on Trade Development over 20 Years since the Establishment of the Shanghai Cooperation Organisation (SCO)”, released in 2022, shows that the total trade value of SCO member states increased from $667.09 billion in 2001 to $6.06 trillion in 2020, representing nearly a 10-fold increase over 20 years. SCO’s share of total global trade value grew from 5.4 percent in 2001 to 17.5 percent in 2020, and the influence of SCO member states on global trade has continued to increase.
Central Asia is the traditional geographical area of the SCO. China’s cooperation with the five Central Asian countries has been deepening, and the trade volume has been growing rapidly. China is already the top trading partner and a major source of investment for the five Central Asian countries. Data shows that China’s trade volume with the five Central Asian countries reached $89.4 billion in 2023, up 27 percent year on year, hitting another record high.
As a SCO member state, Pakistan also saw robust economic growth under CPEC framework, signature project of BRI initiated by China. Pakistan’s export of goods and services to China witnessed an increase of 42.02 per cent during the first eight months of the current fiscal year (2023-24) as compared to the exports of the corresponding period of last year, State Bank of Pakistan (SBP) reported. Since the launch of CPEC in 2013, China has become the largest source of investment for Pakistan for 10 consecutive years with $25.4 billion investment in direct projects in the country.
Energy and infrastructure cooperation is central to SCO economic and trade partnerships. Large-scale crude oil and natural gas pipelines among member states have created mutual benefits, with China becoming a key energy partner. Railway infrastructure improvements have also spurred the growth of the China-Europe Rail Express (CERE). Since its first departure through Alashankou in 2011, CERE has expanded for 13 consecutive years, now reaching 21 countries and cities.
As of April 2024, the Alashankou terminal had operated over 36,000 train trips on 118 routes, transporting more than 200 types of goods, with more foreign commodities entering China via the railway. On June 6, the China-Kyrgyzstan-Uzbekistan railway agreement was signed, accelerating SCO economic cooperation. In Pakistan, over 90% of passenger traffic and 96% of freight depend on road transport, with 1,622 km of CPEC motorways completed or under construction, accounting for 40% of the country’s total motorway mileage. These motorways connect key ports like Karachi, Port Qasim, and Gwadar, enhancing cross-border trade.
Under the SCO spirit ignited by China, member states welcomed the adoption of the concept of cooperation among the SCO member states in developing ports and logistics centres, as well as the outcomes of the SCO International Transport Forum held at Tashkent, 1 November 2023. In order to underpin economic trajectories, China motivated member states to expedite the implementation of the Agenda for Sustainable Development until 2030 and fostering inclusive economic globalisation accessible to all.
Now SCO member states aim to eliminate barriers and formulate unified approaches to trade facilitation. As of 2023, the SCO is primarily centred on security-related concerns, describing the main threats like terrorism, separatism and extremism. At SCO summit, held in Tashkent, Uzbekistan, on 16–17 June 2004, the Regional Anti-Terrorist Structure (RATS) was established. On 21 April 2006, the SCO announced plans to fight cross-border drug crimes under the counter-terrorism rubric.
In October 2007, the SCO and Collective Security Treaty Organization (CSTO) signed an agreement in Dushanbe to enhance cooperation on security, crime, and drug trafficking. By 2010, the SCO opposed cyberwarfare, deeming harmful information to states’ spiritual, moral, and cultural spheres a “security threat.” A 2009 accord defined “information war” as efforts to undermine political, economic, and social systems. A 2017 media report noted that SCO foiled 600 terror plots and extradited 500 terrorists through RATS.
At the July 2024 Astana summit, the SCO advocated for a multipolar world order based on the UN’s role, international law, and sovereign cooperation. Led by China, member states emphasized people-oriented collaboration to enhance well-being, while prioritizing the implementation of the Programme of Multilateral Trade and Economic Cooperation and the SCO Economic Development Strategy until 2030. Cultural and humanitarian cooperation was also highlighted, with a focus on preserving heritage and promoting multilingualism for peace and prosperity.
China’s leadership in the SCO further emphasized enhancing e-commerce and digital economy cooperation, with a commitment to narrowing the digital divide and addressing related challenges. Member states welcomed the outcomes of the SCO Digital Forum and the inaugural Technopark and Innovation Cluster meeting in February 2024. Financial support for projects was also stressed, with continued discussions on establishing the SCO Development Bank and Fund to maximize investment potential.
In alignment with the Green SCO agenda, members focused on environmental cooperation, promoting safety, resource management, and climate change adaptation through technology transfers and resource mobilization. They approved joint approaches for addressing environmental issues and launched a plan to implement the Green Belt Programme for 2024-2026, including protected territories and environmental tourism initiatives.
—The writer is contributing columnist.
