China's rise as a leading economic power has championed reforms in global governance, promoting cooperation over conflict through platforms like the Shanghai Cooperation Organization. Pakistan has significant opportunities to enhance trade and development by deepening its ties with key SCO member countries like China, Russia, and Central Asia, fostering stronger economic linkages and sustainable growth.

Over the past decade, rapid global economic, social, and diplomatic transformations have redefined power structures. China has emerged as a major economic power, leading efforts to advocate for reforms aimed at refining the global economic and governance systems. While such demands for reform are characteristic of rising powers, China’s approach is distinct. Rather than creating disruption, it has focused on building partnerships and strengthening platforms that offer mutual benefits to all participants. The Shanghai Cooperation Organization (SCO) serves as a prime example of this cooperative framework.
The SCO was initially established to address minor issues related to border management and security, but it later expanded its scope. It is now the largest regional organization in terms of both size and population. Its member states account for approximately 40 percent of the world's population and have a collective gross domestic product (GDP) of USD 24 trillion. These countries also possess 20 percent of global oil reserves and 44 percent of gas reserves. With the potential inclusion of Saudi Arabia and other aspirants, the market size, energy resource share (oil and gas), and overall economic influence will further increase. Notably, the SCO is the only organization that includes four nuclear-armed states (China, Russia, India, and Pakistan) and hosts two permanent members of the United Nations Security Council (UNSC).
The organization's focus is gradually shifting towards enhancing economic linkages and the development of its member countries. In 2004, the Chinese Prime Minister urged all SCO member states to work towards establishing free trade agreements within the organization. In 2005, China presented a 100-point action plan to further these discussions. At the 2018 Heads of State meeting, it was emphasized that trade procedures should be simplified to promote intra-regional trade. In 2019, the SCO's declaration once again called on member states to accelerate their efforts in fostering economic cooperation and trade. By 2024, members approved the second development strategy at the Heads of State meeting, agreeing to cooperate in multiple sectors, including trade and investment, and took a special initiative to involve the private sector in fostering investment cooperation.
China is championing economic cooperation and promoting investment and trade linkages across diverse fields, including technology. It is leading by example, as evidenced by its increased trade with SCO member states in recent years. Currently, China is one of the largest trading partners of nearly all SCO countries.

Its member states account for approximately 40 percent of the world's population and have a collective GDP of USD 24 trillion. These countries also possess 20 percent of global oil reserves and 44 percent of gas reserves.

The two leading SCO nations, China and Russia, have also outlined their visions for future economic development and trade through initiatives such as the Belt and Road Initiative (BRI) and the Eurasian Economic Union. These initiatives offer promising prospects for future economic growth. As an SCO member, Pakistan has a significant opportunity to leverage the economic potential of the organization, its platforms, and the initiatives of its member countries.
Pakistan has yet to fully tap into the potential of the SCO, and its current trade figures with member states, apart from China, remain modest. In Central Asia, the trade figures reflect room for growth. Pakistan’s total exports to Uzbekistan are USD 27.91 million, Kazakhstan USD 107.2 million, Tajikistan USD 32 million, and Kyrgyzstan USD 10.6 million. On the import front, the numbers are similarly modest, with imports from Uzbekistan at USD 32.3 million, Kazakhstan at USD 1.9 million, Tajikistan at USD 202 million, and Kyrgyzstan at USD 309 million. These figures indicate potential opportunities for further development.
Second, Russia is another very important country and one of the leading architects of the SCO. Moreover, Russia is one of the leading economies and developed nations. It was once a superpower and continues to play a decisive role in international affairs. Pakistan has faced challenges in formulating a policy to effectively engage with the Russian market. According to international trade statistics, Pakistan’s total exports to Russia are only USD 88 million, while its imports amount to USD 885 million. It is widely believed that the historical complexities between the two countries have contributed to the limited economic and trade linkages.
However, there is encouraging news: Pakistan and Russia are actively working to overcome their past difficulties and enhance their relationship. The SCO and China's involvement have created opportunities for both nations to strengthen their ties, and they are making strides toward further cooperation. Additionally, Russia has expressed interest in utilizing the Gwadar Port for trade and connectivity. Therefore, there is optimism that these initiatives will lead to improved trade relations.
Third, an examination of the trade statistics with India reveals a challenging situation. Pakistan has relatively weak economic and trade linkages with India. Although both countries are neighbors, their trade remains significantly low compared to its potential. Pakistan’s total imports from India are USD 258 million, while its exports are negligible. However, it is worth noting that the volume of illegal trade is substantial.
Fourth, Iran is another important member of the SCO and a long-standing friend; both countries share a brotherly relationship. Nevertheless, the spirit of cooperation is lacking in the economic and trade sectors. Pakistan’s total exports and imports with Iran stand at USD 9.9 million and USD 943 million, respectively. The story of trade and economic linkages is the same, or even worse. 
The strength, weaknesses, opportunities, and threats (SWOT) analysis indicates that Pakistan encountered many challenges in the past, which created problems with low connectivity and trade with SCO countries. However, the prominent ones were ignoring the SCO countries, missing the dynamics of the Central Asian States and Eurasia region, and concentrating mainly on the Western markets.

with the completion of Gwadar Port, Pakistan has significantly accelerated its efforts to foster deeper linkages with the Central Asian states, focusing on strengthening trade relations and enhancing cooperation.   

Additionally, international dynamics have played a significant role in shaping trade relationships. The issues of low connectivity and suboptimal trade performance are complex and vary by country. For instance, the historical context between Pakistan and India has been marked by enmity and a lack of trust. The ongoing Kashmir dispute continues to hinder prospects for meaningful development, and reports of Indian human rights violations in the region have further complicated the situation. However, there remains hope that the SCO can facilitate dialogue and foster improved relations in the future.
For the Central Asian states, several factors have influenced trade relations, including a lower prioritization of the region and certain assumptions regarding its dynamics. Historically, Pakistan has sought to engage with these countries but may not have fully explored their governance systems and market structures, which could have enhanced bilateral relationships. However, with the completion of Gwadar Port, Pakistan has significantly accelerated its efforts to foster deeper linkages with the Central Asian states, focusing on strengthening trade relations and enhancing cooperation. This proactive approach reflects Pakistan's commitment to building strong ties in the region moving forward.
The relationship between Pakistan and Iran is influenced by various complexities, particularly due to the impact of U.S. and Western sanctions. Despite these challenges, both countries recognize their mutual interests and the significant potential for collaboration. However, the sanctions have posed obstacles to fully realizing this potential. Moving forward, there is optimism that both nations can navigate these challenges to enhance their partnership.
From the above discussion, we can infer that there are two types of challenges facing Pakistan. First, there are external challenges that are beyond Pakistan's control, such as sanctions on Iran. Second, there are challenges that Pakistan can address internally. In this context, Pakistan’s policy must be both strategic and innovative.
First, Pakistan should conduct a thorough analysis of the markets of all SCO countries. To facilitate this, it would be beneficial to establish permanent bodies dedicated to studying the market dynamics and governance structures of these countries. A comprehensive understanding of these elements will enable Pakistan to formulate a well-informed, objective-oriented policy.
Second, Pakistan should explore innovative avenues to enhance trade linkages. For instance, seeking third-country options or leveraging organizations such as the SCO can be effective strategies to improve trade with Iran.
Lastly, beyond trade, SCO members can assist Pakistan in building its capacity across various sectors crucial for accelerating sustainable development. For example, Russia offers significant opportunities to develop a scientific knowledge base, while China can contribute to enhancing Pakistan's technological foundation.
Thus, Pakistan may find it beneficial to adopt a more progressive approach in its discourse. It is encouraging to note that, in recent times, Pakistan has begun to focus on the Chinese market, as well as on Russia, Iran, and the Central Asian States; however, action-oriented policies and plans are still needed.

The writer is the CEO of the Asian Institute of Eco-Civilization Research and Development. 
E-mail: [email protected]