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Pakistan’s Strategic Role in the Shanghai Cooperation Organisation: A Crucial Step Towards Economic Transformation

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Dr Nasir Butt

Pakistan recently took center stage by hosting the 23rd meeting of the Council of the Heads of Government (CHG) of the Shanghai Cooperation Organisation (SCO) on October 15-16 in Islamabad. This event marked Pakistan’s first time hosting the SCO-CHG, which ranks as the second-highest decision-making body within the SCO, following the SCO Head of State Council (HSC).

The SCO is a growing intergovernmental organization consisting of nine member states, 14 dialogue partners, and three observer states, all committed to promoting trade, cultural exchanges, connectivity, and regional stability. Pakistan joined this influential group in 2017, and organizing the recent SCO-CHG meeting holds significant implications for the nation on multiple levels.

Firstly, hosting the SCO meeting highlights Pakistan’s expanding geopolitical influence. The high-profile attendance underscored its rising diplomatic stature. The summit welcomed seven prime ministers from member states, including those from China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus, along with one prime minister from the observer state Mongolia. Notable dignitaries, such as Iran’s first vice-president and the Indian minister of external affairs, also attended. Collectively, these leaders represented over 40% of the global population.

The event was notable for the presence of four of the nine nuclear-armed states—Pakistan, China, Russia, and India—and the involvement of major global powers, reinforcing Pakistan’s capability to engage diplomatically with key regional players while maintaining cordial relations, apart from its relations with India. This achievement signals a significant milestone for Pakistan in both regional and global contexts.

In the lead-up to the summit, Islamabad engaged in numerous high-level meetings with Iran, Russia, China, Turkmenistan, Tajikistan, Kazakhstan, and Uzbekistan, which further demonstrates its commitment to strengthening ties with these nations. The bilateral discussions held alongside the SCO Summit reaffirmed Pakistan’s rising geopolitical importance and its capacity to act as a facilitator of interregional cooperation.

Secondly, the summit was pivotal in underscoring Pakistan’s rising geo-economic significance. The country’s unique position and initiatives can aid in developing collaborative projects, especially under the China-Pakistan Economic Corridor (CPEC). By promoting inclusivity in its economic strategy, Pakistan aligns its goals with the SCO’s aim of combating protectionism and enhancing a non-discriminatory trading system that reflects the principles upheld by the World Trade Organization (WTO) and the SCO Charter.

During a previous SCO ministerial meeting, the focus was similarly placed on promoting mutual trade interests to elevate the economic competitiveness of the member states while fostering robust supply chains to increase global trade participation. This consensus emphasizes the urgency for infrastructure development as a vehicle for economic growth. With its strategic location, Pakistan can leverage its physical connectivity through road, rail, and air networks to facilitate trade among neighboring countries.

Thirdly, the summit underscored Pakistan’s critical geostrategic location, highlighting its potential to act as a hub for regional and global connectivity. Positioned centrally among the SCO member states, Pakistan shares borders with powerful neighbors—Russia and the Central Asian Republics to the north, India to the east, and Iran and Afghanistan to the west. This positioning affirms Pakistan’s role as a vital conduit for transit trade, a unique position that piques interest in its geopolitical dynamics.

In addition to its geographic advantages, Pakistan is enhancing its infrastructure through the establishment of Technical Zones and Special Economic Zones (SEZs) along with initiatives like the Special Investment Facilitation Council (SIFC). The combination of a liberal investment regime, modern infrastructure, a skilled workforce, and advances in digitalization and emerging technologies, such as artificial intelligence and cybersecurity, portends significant opportunities for connectivity.

The integration of CPEC with the International North-South Transport Corridor (INSTC) could further solidify connections between the Central Asian regions, Iran, and China. This network has the potential to facilitate a major trade route, linking landlocked regions to the deep-sea port of Gwadar in southern Pakistan. Such initiatives not only enhance trade prospects for Pakistan but also offer mutual benefits for all involved nations.

The connectedness fostered by the SCO could serve as a transformative force, offering not only commercial opportunities for Pakistan but also broader socioeconomic advancements for the SCO member states. This interconnectedness stands to potentially uplift a significant segment of the global population out of poverty and improve living standards across the region.

Historically, Pakistan has played key roles at various critical junctures in global history. The recent hosting of the SCO Summit positions Pakistan at another pivotal moment, reflecting its considerable efforts to enhance its standing in international affairs. As an emerging middle power within the Global South, Pakistan’s geopolitical, geo-economic, and geostrategic relevance remains firmly on the world stage.

To maintain and amplify this trajectory, it is vital for Pakistan to understand that its domestic political and economic stability directly impacts its external engagements. A stable political and economic climate is not just a local concern, but a global necessity to sustain a robust global footprint.

In striving to uphold its role within the SCO, Pakistan should focus on avoiding polarization and bloc politics while fostering amicable relationships with all parties. The evolving global political landscape has moved beyond the traditional Cold War mindset, offering Pakistan an opportunity to adapt and cultivate a balanced diplomatic approach that enhances its standing both regionally and globally.

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