SCO (SHANGHAI COOPERATION ORGANIZATION)

The Shanghai Cooperation Organization (SCO) is an intergovernmental

mutual-security organization which was founded in 2001 in Shanghai by
the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and
Uzbekistan. Except for Uzbekistan, the other countries had been member
of the Shanghai Five, founded in 1996, after the inclusion of Uzbekistan
in 2001, the members renamed the organization.
Aims and Purposes

1. Promote Regional Peace and Stability

To safeguard regional peace, security, and stability through
cooperation in combating terrorism, separatism, and extremism.
2. Enhance Mutual Trust and Collaboration
To strengthen mutual trust, good neighborly relations, and friendly
cooperation among member states.
3. Facilitate Economic and Trade Growth
To encourage economic collaboration by fostering trade,
investment, and financial cooperation, with the long-term goal of
establishing a free trade area among member states.
4. Encourage Cultural and Educational Exchange
To promote cultural connectivity and cooperation in education,
science, technology, tourism, and environmental protection.
5. Address Global and Regional Challenges
To work collectively to address contemporary challenges such as
security threats, economic crises, and natural resource
management.
6. Build a Fair International Order
To contribute to the establishment of a democratic, just, and
reasonable international political and economic system.
7. Advance Energy and Infrastructure Cooperation
To strengthen partnerships in energy, transportation, and
connectivity for mutual benefit and regional integration.
Secretariat
Beijing (China)

Secretary General
Zhang Ming (China)

Deputy Secretary General

Total 6 in number.
Sohail Khan from Pakistan.

Members of SCO
1. China
2. Russia
3. Kazakhstan
4. Kirghizstan
5. Tajikistan
6. Uzbekistan
7. Pakistan
8. India
9. Belarus
10. Iran

Observers
Afghanistan and Mongolia.

Dialogue Partners
14
Guest Attendees
4

Official Language
Chinese and Russian.

Structure
1. Council of Heads of State
The Council of Heads of States is the top decision-making body in
the SCO. The Council meets at the SCO summits, which are held
each year in one of the member's capital.
2. Council of Heads of Government
The Council of Heads of Government is the second-highest council
in the organization. This council also holds annual summits, at
which time members discuss issues of multilateral cooperation.
The Council also approves the organization budgets.
3. Council of Foreign Ministers
The Council of foreign also hold regular meetings, where they
discuss the current international situation and the SCO's interaction
with other international organisations.
4. Council of National Coordinators
As the name suggests, the Council of National Coordinators
coordinates the multilateral cooperation of member states within
the framework of the SCO's charter.
5. Secretariat
The Secretariat of the SCO is the primary executive body of the
organization. It serves to implement organizational decisions and
decrees drafts proposed document (such as declarations and
agenda) function as a document depository for the organization,
 arranges specific activities within the SCO frame work, and
promotes and disseminates information about SCO. It is located in
Beijing.

SCO-REGIONAL ANTI-TERRORIST STRUCTURE (RATS)

The Regional Anti-Terrorist Structure (RATS), headquarter in Tashkent,
Uzbekistan, is a permanent organ of the SCO which serves to promote
cooperation of member states against the three evils of terrorism,
separatism and extremism.
The Head of the RATS is elected to a three-your term. Each member
state also sends a permanent representative to RATS.

Recent Summits
1. Islamabad, Pakistan-2024
2. Virtually, India-2023
 Pakistan and SCO

Introduction
As the incumbent chair of the SCO Council of Heads of Government – the
second highest forum of SCO that deals with economic, trade, social, cultural,
and humanitarian issues and budgetary matters of the organization – Pakistan
hosted the SCO Summit that took place on October 15 and 16 2024 in
Islamabad. SCO member states were represented by the prime ministers of
China, Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan as
well as the first vice president of Iran and the external affairs minister of India. To
ensure the security of participants from member countries of SCO, there was a
complete lockdown in Rawalpindi and Islamabad, with the deployment of 10,000
police and paramilitary personnel for the security of about 900 delegates.

Before that, in 2023, Pakistan hosted the Conference on Transport Connectivity

for Regional Prosperity on November 22, 2023, and the expert-level meeting of
the Special Working Group on Poverty Alleviation entitled “Leveraging Digital
Technologies to Enhance Social Safety Nets in SCO Member States” on
December 6, 2023.

Additionally, in the future, from 2025 to 2026, Pakistan will chair the SCO Council
of Regional Antiterrorism Structure (CRATS). Pakistan will assume the rotational
chair of the SCO Council of Heads of State (CHS) and SCO Council of Foreign
Ministers (CFM) in 2026-27. This is a clear demonstration of Pakistan’s desire to
advocate for addressing regional issues by showing its active participation in
regional organizations like SCO.

What is SCO?
Shanghai Cooperation Organization is an intergovernmental organization
founded in 1996 by five countries, namely the People’s Republic of China, the
Russian Federation, Kyrgyzstan, Tajikistan, and Kazakhstan, to promote peace,
disarm border regions, and encourage regional cooperation under the aegis
of “Shanghai Five.” A memorandum of understanding on creating better
conditions for regional economic cooperation, trade, and investment was signed
in the first prime ministers’ meeting of SCO held on 14 September 2001.

Also Read: The Russia-Ukraine War: Impact on Global Food Security

Additionally, it was vowed to keep the meetings at the level of prime ministers of
the member states to make them a regular mechanism. In today’s era, along with
other meeting mechanisms, the SCO heads of state summit and the SCO prime
ministers’ council meetings held once a year constitute the highest level of these
mechanisms.

Furthermore, the SCO is a crucial cross-regional bloc. Its membership depicts

nearly 80 percent of the Eurasian landmass, 40% of the world population, nearly
30% of the global GDP, and a significant share of oil and gas reserves. It acts as
a land bridge between Asia and Europe.

Agendas of the Council of Heads of

Government Meetings
The SCO meetings sought to explore ways to enhance regional economic
integration through trade and connectivity within the Eurasian political and
security bloc. Additionally, all the member states pledged to offer their services
for working on eradicating poverty while promoting prosperity and sustainable
development in the region.

Member states vowed to collectively work on initiatives aimed at reducing

disparities and promoting inclusive growth. Additionally, connectivity projects,
both in terms of infrastructure and digital networks, can play a significant role in
facilitating trade and ensuring smoother economic interactions across borders.
Furthermore, the organization’s budget was likely to be approved.

Outcomes of the 2024 SCO Summit in

Islamabad
After the two-day summit, a joint communique was issued in which the heads of
delegations advocated for sustainable and inclusive economic growth of member
states by optimizing the region’s potential in areas such as:
 Green development
 Digital economy
 Trade
 E-commerce
 Finance and banking
 Investment
 High technology
 Start-ups and innovation
 Poverty alleviation
 Health care (including traditional and folk medicine)
 Agriculture
 Industry
 Transport
 Logistics connectivity
 Energy (including renewable energy)
 Communications
 Science and technology
 Environment and climate change.

Also Read: The Uncertain Future of Afghanistan: Terrorism, Reconstruction, and Great
Power Rivalry

While underscoring the indispensability of implementing the SCO Economic

Development Strategy for the period up to 2030 and the Program of Multilateral
Trade and Economic Cooperation of the SCO member states, member countries
vowed to ensure stable economic and social development in the Eurasian region.

Heads of the delegation also laid emphasis on enhancing railway transport

cooperation while welcoming the upcoming meeting of railway administrations in
Moscow. They advocated for innovative technologies in multi-model transport
and called for developing infrastructure, logistics, and safety measures, aligning
with the SCO’s concept of cooperation on ports and logistics centers.

Additionally, they emphasized the significance of enhancing further cooperation

in overcoming poverty and ameliorating the living standards of the population,
while adhering to the agenda of the special working group (SWG) of the SCO
member states that deals with poverty reduction issues. Furthermore, during the
meetings, sundry decisions were taken regarding the financial and organizational
activities of the SCO permanent bodies. For this purpose, due attention was paid
to admitting the Republic of Congo to the Shanghai Cooperation Organization.

Member countries also expressed their deep concerns over protectionist and
unilateral actions of imposing trade impediments contrary to the WTO rules and
regulations. They believed such measures had undermined the multilateral
trading system while severely impinging on Third World countries and the global
economy. They vowed to join efforts to reinvigorate a non-discriminatory, open,
equitable, inclusive, and transparent multilateral trading system, predicated on
the WTO.

The heads of the delegation also proposed to promote the adoption of a

resolution by the UN General Assembly in tandem with the SCO initiative “On
World Unity for a Just Peace, Harmony and Development.” The initiative tends to
foster cooperation in establishing new types of international relations predicated
on mutual respect, justice, equality, and mutually beneficial cooperation, as well
as the formation of a common vision of the idea of creating a community of
common destiny for mankind and the development of dialogue on the concept of
“One Earth, One Family, One Future.”

Beyond that, all member countries vowed to enhance cooperation in energy,

economy, and climate change through the development of Interconnectivity and
the creation of efficient transport corridors. Additionally, they laid emphasis on
resolving disputes through bilateral means.

Also Read: Reforming the National Character of Pakistan

Challenges Faced by the SCO in Pursuing its

Objectives
No regional organization can be successful in achieving its agendas if its
members have a self-proclaimed and regional hegemonic attitude towards its
neighborhood. For instance, India has entered into needless competition with
China and seeks to counter its influence in the CARS region. Its approach is
driven by hostile and conflictual relations, particularly with China and Pakistan,
casting a shadow over SCO’s objectives for achieving mutual benefits and
cooperation.

Additionally, in his article published in Nikki Asia, author Brahma

Chellaney argues that India seemed to have had a second thought about
attending the 2024 SCO Summit in Islamabad. This must be attributed to an anti-
Western picture of the organization portrayed by the West. This runs parallel to
the pro-Western propensity of the Indian Prime Minister Narendra Modi.
However, the foreign minister of India attended the ministerial meetings in
Pakistan.
On the other hand, in his article published on the website of the Observer
Research Foundation, the Vice President argues that China has been exploiting
the SCO platform to pursue its hegemonic interests rather than providing any
gains to the members of the CARS region. This Sino-India geopolitical rivalry has
led Russia to focus more on expanding BRICS, a group that seeks to lessen
Western influence by de-dollarizing the world. Moreover, the presence of Iran
and India is an obvious contradiction within the group that threatens to
undermine its foundational purpose. For instance, Iran is battling the Zionist
assault, whereas India has been an anchor of support for Israel.

Conclusion
The 2024 SCO Summit offers a crucial moment to reinvigorate the organization
by building stronger economic ties among its members. Pakistan is eager to push
forward initiatives that not only boost regional trade but also improve connectivity
through better infrastructure and transport links across the region. However,
challenges remain due to geopolitical rivalries. Member countries need to set
aside differences to pursue mutual cooperation and achieve the goals of the
forum.
 SCO moot showcases Pakistan’s importance on the global stage
Observers believe hosting summit enhanced country’s diplomatic
standing, showed that it was "open for business" with the world.
Baqir Sajjad Syed Published October 18, 2024
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HOSTING the 23rd Shanghai Cooperation Organisation’s (SCO)

Council of Heads of Government meeting was more than just a
diplomatic achievement for Pakistan; it provided the government with an
opportunity to show the world the crises it had faced over the past few
years had been contained.

In recent years, Pakistan has dealt with multiple challenges, including

political instability, economic difficulties and security concerns, which
led to negative perceptions that harmed its diplomatic standing and
investor confidence. Successfully organising such a complex diplomatic
event amid ongoing internal challenges, therefore, helped negate those
impressions.

The conference took place under tight security due to ongoing threats
and political unrest. Though the city’s deserted streets during the
security lockdown may not have been particularly reassuring for the
visiting delegates, they still left with the sense that, despite its
challenges, Pakistan remains functional, resilient, and open for business
with the world.

The conference, moreover, presented Pakistan as a country not only

actively engaged in global dialogues, but also capable of leading
initiatives with regional significance. It also showcased the country as a
reliable partner for foreign investors at a time when Islamabad is
desperately seeking foreign investment to revive its economy.

Observers believe hosting summit enhanced country’s diplomatic

standing, showed that it was ‘open for business’ with the world
Pakistan’s presidency of the SCO Council of Heads of Government
highlighted its role as an active player in regional geopolitics. The
presence of eight prime ministers from member countries underscored
Pakistan’s growing importance within the organisation and the region.

The high-level participation signalled that member states view Pakistan

as a crucial partner in addressing regional challenges and advancing
cooperative efforts, reinforcing the seriousness of its diplomatic
outreach.

“Diplomacy is a process, not an event. Hosting the SCO summit has

shown that Pakistan is an important multilateral player and has enhanced
its diplomatic standing with member states,” remarked Dr. Maleeha
Lodhi, a former ambassador and columnist, while commenting on the
importance of Pakistan hosting the event.

However, she cautioned against overemphasizing the significance of

hosting the event, as the rotation of SCO summits follows an
alphabetical order.

Big guns from Beijing, Moscow

Beyond enhancing perceptions of Pakistan and underscoring its regional

significance, the event served to revitalise Pakistan’s bilateral relations.

For instance, Chinese Premier Li Qiang’s visit to Pakistan marked the

first visit by a Chinese prime minister in 11 years, despite the two
countries being long-standing regional allies, particularly in their
collaboration on the China-Pakistan Economic Corridor (CPEC).

Following the Oct 6 attack in Karachi that killed two Chinese workers,
Premier Li had ample reason to pull out and send a lower-level
representative. However, his country being one of the founding members
of the SCO, he attended the event and also engaged in bilateral talks,
reaffirming Beijing’s commitment to its relationship with Pakistan.
Similarly, Russian Prime Minister Mikhail Mishustin’s visit was
significant as it was the first by a Russian prime minister since Mikhail
Fradkov’s trip in 2007. Mishustin’s large delegation and his bilateral
meeting with Pakistani Prime Minister underscored Moscow’s growing
interest in deepening ties with Pakistan, particularly in the areas of trade
and energy exports.

Pakistan-Russia relations have warmed considerably over recent years,

evolving from a period of limited engagement during the Cold War to a
partnership grounded in mutual respect and shared strategic interests,
particularly in Afghanistan’s stability, counterterrorism, and energy
cooperation. This growing relationship has been further solidified by
joint military exercises and trade agreements, especially in the energy
sector.

The India factor

Indian External Affairs Minister S. Jaishankar’s participation, standing

in for Prime Minister Narendra Modi, was also notable as he was the
most senior Indian official to visit Pakistan since 2016. Although both
sides had made it clear in advance that no bilateral engagements would
take place, Pakistan’s hosting of the event remained professional.

Unlike the 2023 Council of Foreign Ministers Meeting in Goa, Pakistan

did not allow its rivalry with India to overshadow the event, despite
Jaishankar making subtle jabs at the hosts during his speech at the
plenary session.

Pakistan’s leadership, including Prime Minister Shehbaz Sharif and

Foreign Minister Ishaq Dar, extended courtesies and exchanged
pleasantries with Jaishankar, which he later acknowledged in a post on
X upon his return to India. Some in the Pakistani media interpreted this
hospitality as a potential icebreaker, though the Indian Ministry of
External Affairs clarified that Jaishankar only exchanged pleasantries in
informal settings, with no substantive discussions on cricket or bilateral
relations.
Former Pakistani envoy Abdul Basit remarked that the SCO still
struggles to assert its relevance in a shifting global order, and that
India’s evolving strategic partnership with the US could become a major
impediment to the organization’s activities.

Talking to Dawn, an SCO official noted that amid geopolitical

uncertainties, member states are keen to strengthen cooperation in
security matters. In his address, PM Sharif called on the member states
to pressure the Taliban administration to prevent Afghan territory from
being used by groups involved in cross-border terrorism.

Former Special Envoy for Afghanistan Asif Durrani added that

Afghanistan’s immediate neighbours and Russia are key players in
counterterrorism efforts, suggesting that India, due to its alleged support
for the Tehreek-i-Taliban Pakistan (TTP) and Balochistan Liberation
Army (BLA), should also be engaged in these discussions.

Published in Dawn, October 18th, 2024

SCO — big power, limited progress

Nasir Jamal Published October 21, 2024

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The world economic order is fast changing, with industrial policymaking

a rapid comeback in the United States and Europe at the cost of
multilateralism and the Global South facing serious headwinds due to
the dominance of the US dollar in the international financial system that
gives Washington and other western capitals enormous leverage to
impose economic blockade on any country.
Against this backdrop, the 23rd Council of Heads of Government of the
Shanghai Cooperation Organisation (SCO) met in Islamabad last week.
The joint communiqué released by the SCO member states at the end of
the moot echoes their concerns — rather frustration — about these
developments as the group is worried over protectionist trade practices
being adopted by the West and the use of economic sanctions by
Washington and other developed European nations as a weapon to
subdue other nations for their own benefits.

At the same time, it underlines the need to protect and promote the
World Trade Organisation’s multilateral trade system for inclusive
global growth, particularly in developing and underdeveloped
economies, reduce reliance on the American currency for international
trade transactions, and improve digital and physical connectivity among
the SCO countries.

Two members of the SCO, Russia and Iran, are facing Western sanctions
restricting their access to international markets and stifling their
economic growth. Others like China are confronting massive tariff
barriers imposed by the US and the European Union on its goods —
especially electric vehicles, solar panels and other green products — and
actions against its technology companies (Huawei and TikTok being two
major examples) for the last decade.

Despite accounting for one-third of global GDP, the bloc’s economic

might will only come into play if bilateral disputes within it are resolved

Still, others like Pakistan have suffered significantly due to the higher-
for-longer US Federal Reserve interest rates, driving up the costs of their
foreign debt payments and retail domestic energy prices. Many
developing nations have also seen investors taking money out of their
economies for better returns in the US securities, shaking down their
currency values and international reserves.
On top of that, the revival of the industrial policy in the US, which has
led Washington to announce large subsidies for its automakers and other
industries, is also being seen with suspicion in the rest of the world.

These factors have led the group founded in 2001 to foster security,
economic and political cooperation among its member states to take a
unified stance against unilateral sanctions and protectionist trade
practices of the US, which are “seen as barriers to open trade and
economic collaboration”, in the joint communiqué released at the end of
the SCO meeting.

The communiqué argues that “sanctions not only undermine the

sovereignty of countries but also disrupt global economic relations”. It
advocates for multilateral cooperation under which countries can openly
trade, and respect for international law takes precedence over unilateral
actions.

“The heads of delegations emphasised that the unilateral application of

sanctions is incompatible with the principles of international law and has
a negative impact on third countries and international economic
relations,” says the communiqué. It also opposes protectionist actions
and trade restrictions that undermine the multilateral trading system and
impede global sustainable development.

The Islamabad moot was also important because of its push for
developing and adopting a local currency payment mechanism to allow
the SCO member countries to settle mutual trade transactions in their
respective local currencies rather than relying on international currencies
like the dollar or the Euro. This would reduce the cost of trade by
eliminating currency exchange and transaction fees, minimising
exposure to fluctuations in the exchange rate of and cost of borrowing in
major global currencies.

Some SCO members, including Pakistan, have already entered into

bilateral currency swap agreements, which allow them to trade goods
and services directly in their local currencies. This is expected to
enhance economic cooperation and increase financial stability in the
region.

In order to encourage the use of local currencies and boost economic

cooperation among member states, the SCO leaders have further decided
to expedite consultations on the establishment of financial institutions:
SCO Interbank Union, SCO Development Bank, SCO Development
Fund and SCO Investment Fund. These institutions are expected to
contribute to economic integration, trade facilitation, and regional
connectivity by providing financing for infrastructure projects,
supporting economic development initiatives and focusing on
investments in key sectors, such as energy, transportation and
telecommunications.

By providing alternative financing options, the SCO aims to reduce

dependence on external financial institutions and promote economic
growth among its member states. “Transitioning to settlements in mutual
currencies will shield us from global financial disruption,” Pakistan’s
Prime Minister Shehbaz Sharif told the meeting as he appealed for
harmony, urging nations to “prioritise collaboration over political
differences.”

Apart from supporting multilateral trade regime over unilateral Western

actions undermining global competition and adoption of local currencies
for mutual trade settlement among member countries, the SCO moot has
sought to increase connectivity and cooperation in joint energy
infrastructure, information technology, security and counterterrorism,
logistics, transportation, environment and climate change, public health,
industrialisation, green technologies, science and so on.

Another major outcome of the Islamabad meeting is the group’s support

for the Belt and Road Initiative (BRI) despite India blocking a consensus
on the infrastructure project. The SCO leaders strongly emphasised
enhancing connectivity and improving transport links as crucial drivers
of regional cooperation and economic growth.
Development of railway systems, multimodal transportation, port and
logistics infrastructure, and the digital transformation of the transport
sector were highlighted as key priorities. “Flagship projects like the Belt
and Road Initiative of President Xi Jinping… should be expanded
focusing on developing road, rail and digital infrastructure that enhances
integration and cooperation across our region,” Shehbaz Sharif said in
his speech as the chair of the meeting.

That said, progress on the common goals of the 10-state SCO — now
one of the world’s largest regional organisations, with members
accounting for roughly one-third of global GDP, around 40pc of the
global population, a significant share of oil and gas reserves, and nearly
two-thirds of the Eurasian landmass — has been slow, despite the initial
euphoria surrounding it.

Some member countries have yet to resolve their bilateral disputes,

while others have yet to ease visa restrictions for other group members
to increase greater people-to-people interaction due to security concerns.

The development of the SCO as a vibrant economic bloc offers

tremendous potential to bolster regional trade and investment, enhance
security cooperation and facilitate access to energy and infrastructure
projects for its members. But these countries will have to tackle their
bilateral tensions to make meaningful strides as a bloc to counter
western hegemony on global trade.

Published in Dawn, The Business and Finance Weekly, October 21st,

2024