IT is an honour for Pakistan to have the privilege of hosting the Shanghai Cooperation Organization (SCO) Heads of State Meeting in October 2024 in the capital, the world’s largest regional organization in terms of geography. The SCO is a regional, political, economic and defence organization established by China and Russia on June 15, 2001. Initially China, Russia, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan were member countries of the SCO. Pakistan and India joined the organization as permanent members on June 2017, Iran in 2023 and Belarus in 2024, bringing the number of permanent members of the SCO to 10. Apart from this, three countries are associated with the SCO as observers and 14 countries as dialogue partners. The SCO covers about 80% of the world’s area, accounts for 40% of the world’s population and about 32% of the GDP. The goals of the organization are good neighbourliness among the member countries, cooperation in the fields of trade, science, technology, education, energy, tourism, peace and security in the region. Ahead of the SCO Summit in October, on September 10 and 11, Pakistan hosted the SCO Trade and Economic Affairs Ministers’ Meeting in Islamabad.
Pakistan reiterates its firm commitment to the goals and objectives of the SCO for peace and prosperity in the region. An invitation was sent to the Indian Prime Minister, Narendra Modi, to attend the SCO summit, but Indian Commerce Minister will attend the Conference online instead. India wants to undermine lasting impact of the SCO and the SAARC. Modi has refused to participate in the SCO conference being held in Islamabad in October because he believes that India is leader of the region and it is India which will set regional economic order. Modi’s refusal is not an insult to the SCO, rather it is an insult to India itself. Last year on July 4, 2023, the then FM Bilawal Bhutto represented Pakistan in the meeting of FMs of the SCO held in India. The FPCCI organized the SCO Business and Investment Conference in Islamabad on September 12 and 13 along with the meeting of the Ministers of Trade and Economic Affairs of the SCO in Islamabad in which the Chambers, Federations, Businessmen of the SCO member countries and all ambassadors of the SCO countries posted in Pakistan participated.
The most successful model of trade promotion in the world is regional trade. If we compare the successful regional trade model of the world, the mutual trade of the North American Bloc ‘North American Free Trade Agreement (NAFTA)’ is 40%, mutual trade of 27 countries of the EU is 57%, mutual trade of the ASEAN countries is 27%, while mutual trade of the SCO countries is barely 5% and mutual trade of the SAARC countries is merely 4%. The SCO and the SAARC Bloc among whose members, trade of the region has not been developed due to political differences aired by India. Pakistan’s trade with the SCO countries is US$ 24.6 bn, in which export from Pakistan is US$ 4.6 bn and import is US$ 20 bn. Trade between Pakistan and China is US$ 22 billion, meaning Pakistan’s trade with other SCO countries is just 1%, or US$2.6 billion, which is negligible within the world’s largest regional trade bloc.
For the economic development and prosperity of the region, business and trade should be kept separate from diplomacy and politics. We should lift the ban on trade with India, and India should also fully engage in the SCO and SAARC so that we can achieve the objectives of these regional blocs. For the promotion of trade with the SAARC countries, we will have to open banking channels in the member countries. We will have to improve standards of transport and logistic facilities for the promotion of the business and trade in Central Asian countries, which don’t have their own ports and are trading from ports of Pakistan using the land routes. The NLC has expanded its trade through containers in Central Asian countries. Pakistan’s trade with Russia and Iran, the two important countries of the SCO, is very low. Russia’s per capita income is US$ 13,647 and our trade is barely US$ 1 bn, while Iran’s per capita income is US$ 4,662 and our trade is US$ 1.8 bn. Similarly, our trade with India is barely US$ 531m, which has a lot of potential to increase.
The purpose of the SCO is not to accept authority of ??a single superpower (America) in the world. In order to control terrorism in the region, the Chinese Foreign Minister proposed in the SCO Foreign Ministers’ Conference that the SCO countries should have broader dialogue with Afghanistan. It will be an important opportunity for Pakistan to implement this idea through the SCO and pursue dialogue with Afghanistan on the issue of terrorism. China rightly believes that peace in the region can bring prosperity to all the SCO member countries. All the SCO member countries including Pakistan should ensure political stability and continuity of economic ties.
—The writer is author of several books based in Islamabad.
