The 23rd SCO Heads of Government meeting in Islamabad on October 15-16, 2024, reinforces Pakistan's strategic significance in regional diplomacy, as it convenes leaders from eight member states to advance cooperative economic initiatives and collective prosperity.
Pakistan hosted the 23rd meeting of the Heads of Government of Shanghai Cooperation Organization (SCO) on October 15-16, 2024, in Islamabad. The meet-up, which was attended by Prime Ministers of eight out of the ten member states (Iran and India ominously chose to be represented at ministerial level), testifies to Pakistan’s growing regional and multilateral integration and Islamabad’s credentials as a reliable strategic partner of an increasing number of countries.
The SCO is an intergovernmental organization (IGO) established in 2001 in Shanghai by six countries: China, Russia, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. The SCO Charter was signed in St. Petersburg, Russia, in 2002 and came into force on September 19, 2003. Later, Pakistan, Iran, India, and Belarus joined, bringing the total membership to ten. Afghanistan and Mongolia, the latter represented by its premier at the Islamabad meeting, hold observer status in the organization.
The membership of SCO is drawn from Eastern Europe, East Asia, Central Asia, South Asia, and the Middle East. Including four nuclear powers, it has the distinction of being the world’s largest regional organization, both by area and population, and one of the most important strategically. The member countries collectively constitute a quarter of global economic output, and control one-fifth of the world’s oil, and nearly a half of its natural gas reserves. The organization’s goals are exceedingly broad in scope and encompass strengthening mutual trust and good-neighborliness between the member states; encouraging effective cooperation in such diverse spheres as politics, trade, economy, science and technology, culture, education, energy, transport, tourism, and environmental protection; maintaining regional peace, security and stability; and promoting a democratic and fair political and economic international order. In attaining its goals, the organization is guided by four principles: mutual trust, mutual benefit, equality, consultation, respect for diversity of civilizations and pursuit of common development (collectively called the “Shanghai Spirit”); non-alignment; non-targeting at other countries or regions; and openness.
Although the SCO’s spectrum of activities comprises a wide range of areas from health to sports, and from tourism to climate change; it’s three spheres, namely security; energy; and trade, transport and infrastructure development, may be regarded as constituting the organization’s priority.
The member countries collectively constitute a quarter of global economic output, and control one-fifth of the world’s oil, and nearly a half of its natural gas reserves.
Islamabad joined SCO in June 2017. From 2005 to 2017, it enjoyed the status of an observer state. Pakistan's formal association with SCO may be relatively new. Yet its relations with most SCO member states are longstanding, based on a shared history and culture, geographical bonds and commonality of interests. The SCO membership offers Pakistan unique opportunities to get constructively engaged with Eurasia. Pakistan is committed to the Shanghai Spirit, which in essence has been a guiding principle of its foreign policy. Islamabad’s interests in SCO are multifaceted. However, some stand out as prominent. These include security, energy, trade and connectivity, an equitable international order, and peace and stability in Afghanistan.
Security
Across the globe, the security challenges are becoming increasingly complex—more so in the SCO region, as the center of gravity of world politics is shifting to Asia. Not surprisingly, supporting stability and security in the region and beyond remains at the forefront of SCO. The organization was set up with a view to ensuring stability and maintaining security in the enormous Eurasian region and addressing the challenges and threats that could engender insecurity and instability. These range from poverty and backwardness to confrontations and conflicts, and from violation of international law with regard to state sovereignty and territorial integrity to transnational organized crime and illicit drug trafficking. If such political and socioeconomic factors underpin insecurity, the disruptive use of technologies, particularly the internet (cyberterrorism), serves as the most lethal agent of proliferation of extremism, separatism, and terrorism; while illicit drug production and trafficking bankroll these evils.
Over time, SCO has established itself as the primary security organization in the region. For security related collaboration, which includes fight against terrorism, extremism, drug-trafficking and disruptive use of the internet, SCO has a dedicated standing body named the Executive Committee of the Regional Anti-Terrorist Structure (RATS) headquartered in Tashkent, Uzbekistan. The broad instruments of collaboration are joint exercises and trainings, exchange of information, and development of common strategies. The organization’s common response to the growing menace of extremism is embodied in the Shanghai Convention on Combating Terrorism, Separatism and Extremism, 2001, and the SCO Convention on Countering Extremism, 2017. The latter not only improves the mechanism to counteract extremism in SCO region but also incorporates the new threats to international security and the methods to fight them. For example, “extremism” is defined not as an “act” but as an “ideology and practice,” which is the breeding ground of terrorism. Methods to fight extremist ideology, such as preventing the abuse of internet, have also been incorporated. The United Nations (UN) recognizes SCO as a crucial force for stability in Eurasia.
For security related collaboration, which includes fight against terrorism, extremism, drug-trafficking and disruptive use of the internet, SCO has a dedicated standing body named the Executive Committee of the Regional Anti-Terrorist Structure (RATS) headquartered in Tashkent, Uzbekistan.
As one of the countries most severely affected by extremism and terrorism—suffering over 80,000 casualties and more than USD 150 billion in economic losses—Pakistan has continued to fight these threats valiantly. Since its admission to the SCO, Pakistan has remained at the forefront of the organization’s efforts against these twin menaces. Participation in the RATS enables Pakistan to be part of the exchange of key information and intelligence on terrorist and extremist activities. Additionally, participation in the SCO’s counterterrorism exercises and military drills provides our armed forces with the opportunity to learn and draw upon the operational tactics of their counterparts in other member countries.
In 2021, Pakistan hosted the Joint Anti-Terrorism Exercise (JATE) titled "Pabbi-Antiterror-2021" at its National Counter-Terrorism Centre (NCTC) in Pabbi, Khyber Pakhtunkhwa (KP), under the framework of RATS. It was the first-ever exercise with the physical participation of counterterrorism forces from two SCO member states: Pakistan and China. This was also the first time China’s anti-terrorism forces participated in a joint anti-terrorism exercise abroad, using live ammunition, within the SCO region. The exercise was conducted in two stages: first, SCO member states simulated the collection, exchange, and evaluation of anti-terrorism intelligence within their borders. Then, they carried out joint anti-terrorism exercises in Pakistan, including sniping action, indoor counterterrorism operations, and hostage rescue.
Pakistan's location at the crossroads of South Asia, East Asia, Central Asia, and the Middle East makes it a potential trade, investment, and transport hub in the region.
Trade, Investment, and Connectivity
The SCO recognizes that security and development are interlinked. Therefore, enhanced economic cooperation among its members lies at the core of the organization’s objectives. To promote this goal, the SCO has launched two major initiatives: the SCO Economic Development Strategy for the period up to 2030, and the 20-year Programme of Multilateral Trade and Economic Cooperation. The Strategy was adopted at the 2023 SCO Summit, with the Action Plan for its implementation subsequently approved. The Programme aims to establish a free trade zone among SCO member states and, in the short term, seeks to create a conducive environment for trade and investment. The Islamabad meeting reiterated the importance of implementing both these instruments of economic cooperation among SCO member states.
Pakistan's location at the crossroads of South Asia, East Asia, Central Asia, and the Middle East makes it a potential trade, investment, and transport hub in the region. The recent shift from geopolitics to geoeconomics underscores the government’s commitment to realize Pakistan’s potential by putting in place the necessary legal, institutional and policy framework. Pakistan is the only country among other SCO members to have a free trade agreement (FTA) with China, effective since 2007. In addition, Pakistan enjoys duty-free access for more than 80 percent of its exports to all 27 countries of the European Union, which together form the world's largest market. Therefore, businesses from SCO countries, like those from the rest of the world, that invest and produce in Pakistan will have the unique opportunity to export to the two largest markets in the world—the European Union (EU) and China—without having to pay customs duties on most products. Furthermore, they can also sell to Pakistan’s large and growing domestic market.
For seamless trade and investment, enhanced connectivity—both national and international—is essential. Pakistan is a signatory to the Quadrilateral Traffic in Transit Agreement (QTTA), alongside China, Kazakhstan, and the Kyrgyz Republic—all SCO members. The agreement provides Pakistan with an alternative route to trade with the Central Asian Republics (CARs), bypassing Afghanistan. Given the ongoing security challenges in Afghanistan, the Quadrilateral route is crucial for Pakistan to boost its trade with CARs through China, which borders Kazakhstan, Kyrgyz Republic, and Tajikistan. The SCO platform can be utilized to further enhance Pakistan's connectivity with CARs via China. Pakistan is also a member of the TIR Convention1, the flagship global transit system. Since late 2023, the QTTA has been made operational with TIR, as goods from Pakistan were delivered in Almaty (Kazakhstan) through China and Kyrgyzstan.
SCO intersects significantly with China’s Belt and Road Initiative (BRI), which seeks to enhance global connectivity, trade, and investment. Most SCO member states, with the notable exception of India, are a part of the BRI. Unveiled in 2013, the China-Pakistan Economic Corridor (CPEC) is one of the six corridors of the BRI. Under CPEC, China has invested significantly in Pakistan's infrastructure and energy sectors to facilitate the country’s increased trade and investment with the rest of the world. A crowning achievement of the BRI-CPEC is the Gwadar Port, the world’s largest deep-sea port, which aims to position Pakistan as a trade and transit hub. The Gwadar Port also substantially reduces the time and cost of China’s trade with the Middle East, Europe, and North America. Additionally, landlocked CARs can utilize the port for trade with these regions, bypassing Afghanistan. During Chinese Premier Li Qiang's visit to Islamabad for the SCO meeting, the New Gwadar International Airport was inaugurated. This airport is another outstanding example of Pakistan-China cooperation, aimed at enhancing regional connectivity and boosting trade and investment.
The China-Europe freight train is another key BRI initiative that can enhance Pakistan’s connectivity and trade with other SCO countries and beyond. Launched in 2011, the train links more than 60 Chinese cities to over 50 cities in Europe in 12 to 18 days, primarily through Russia and Kazakhstan. The proposed Taxila-Khunjerab (Pak-China border) railway line could connect Pakistan to Kashgar (in Xinjiang, China) and further to Kazakhstan by rail. This rail connectivity with China, and beyond to Europe, could be a gamechanger for Pakistan’s trade with both China and the EU through the SCO platform.
The SCO-Afghanistan Contact Group can play an important role in this regard and help Kabul in overcoming economic problems and building up its counterterrorism potential.
Energy
Due to its large population and growing economy, Pakistan is a major consumer and importer of energy. The SCO Energy Club, established in 2013, has significantly enhanced cooperation between major energy producers such as Russia, Iran, Kazakhstan, and Uzbekistan, and consumers like China, India, Pakistan, Kyrgyzstan, and Tajikistan. The SCO can also play a role in facilitating the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline. This multi-billion-dollar project aims to export up to 33 billion cubic meters of natural gas annually from Turkmenistan to Afghanistan, Pakistan, and India, which will reshape the energy landscape in South and Central Asia. Conceived in the 1990s and initiated in 2018, the project has faced delays due to instability in Afghanistan.
Afghanistan
The security and economic interests of SCO member states are connected to the situation in Afghanistan, which shares borders with six SCO countries including Pakistan. The continuing presence of terrorist organizations in Afghanistan, particularly close to its borders with Pakistan, is a persistent threat to the regional peace, security, and prosperity. In the 2020 Doha Accord with the United States (U.S.), the Taliban committed to not allowing Afghan territory to be used by terrorists against other countries. However, the Taliban regime has failed to keep its word, continuing to harbor the outlawed Fitna al-Khawarij (FAK), formerly known as Tehreek-e-Taliban Pakistan (TTP), an Afghanistan-based terrorist group that has masterminded hundreds of cross-border attacks into Pakistan. Among all SCO members, Pakistan has the highest stakes in Afghanistan’s stability and has remained at the forefront of efforts to promote peace, security, and prosperity in that country.
Pakistan is the only country among other SCO members to have a free trade agreement with China, effective since 2007.
For centuries, Afghanistan remained a buffer zone between global and regional powers. Therefore, in the interest of regional security and prosperity, and more than that its own, Kabul ought to pursue a new peace mission as a link between Central and South Asia. The SCO-Afghanistan Contact Group can play an important role in this regard and help Kabul in overcoming economic problems and building up its counterterrorism potential. The SCO can also provide an integrated platform for all the countries in the region to thrash out the issues related to Afghanistan.
A Fair and Balanced International Order
The unipolar international order established by the end of the Cold War is constantly giving way to a multipolar world. China’s ongoing march toward economic development—alongside its formidable military power—together with the resurgence of Russia, has challenged the supremacy of the West. Brexit signifies that fissures are present within the Western world as well. World orders are not only a political contrivance but also have cultural and civilizational underpinnings. Therefore, the shift toward a multipolar world means that no single political system or economic doctrine holds an uncontested claim to supremacy. Rather, it is up to each nation to decide its destiny and the means to advance toward that goal. No one is better positioned to make these decisions than the national government.
SCO is a significant constituent of a multipolar order in view of its economic and military profile. In the wake of the Russia-Ukraine war and the Palestinian-Israeli conflict, the West has its knife in some SCO member states. The long-term strategic rivalry between Beijing and Washington will also continue. However, unlike NATO and Warsaw Pact, the SCO isn’t a military alliance, nor does it target any third party.
It’s here that Pakistan’s role comes into play. Pakistan is a vehement exponent of a fair and democratic world order resting on the bedrock of multilateralism and win-win cooperation. Whether it’s in South Asian or any other regional or global context, Pakistan is tooth and nail opposed to hegemony and a clash of systems or civilizations. Committed to an independent and principled foreign policy, it’s averse to bloc politics or a confrontational approach. That’s the reason Islamabad enjoys profound and multifaceted relations with both Beijing and Washington, while its ties with Moscow are on an upward trajectory as well.
SCO, thus, provides Pakistan with the right forum to pursue both multilateral and regional cooperation. By the same token, SCO can also benefit from Pakistan’s credentials of being strategically a bridge between the East and the West, the South and the North.
The author contributes to national and international issues, with a special interest in the Chinese economy, governance, and development model.
E-mail: [email protected]
The Convention allows goods to be shipped from one country to another via a third country in authorized sealed load compartments that are controlled by customs, thus cutting back on border waiting times.
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