The 23rd Council of Heads of Government meeting of the Shanghai Cooperation Organisation (SCO) saw a reaffirmation of support for China’s Belt and Road Initiative (BRI) as leaders from member states gathered in Islamabad to discuss strategies for strengthening regional cooperation and economic growth. Despite India blocking consensus on the sweeping infrastructure project, the summit highlighted the member states’ commitment to enhancing connectivity and criticized Western unilateral sanctions and protectionist trade policies.
The meeting, presided over by Pakistani Prime Minister Shehbaz Sharif, brought together high-ranking leaders from across the region, including Russian Prime Minister Mikhail Mishustin and Chinese Premier Li Qiang, alongside representatives from countries like Belarus, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. India was represented by its External Affairs Minister, Dr. S. Jaishankar.
With a focus on improving transport infrastructure and advancing economic cooperation, the summit showcased the collective will of SCO members to counter challenges imposed by global protectionist measures and sanctions while boosting internal connectivity.
BRI and Regional Connectivity: A Collective Vision for Growth
One of the key outcomes of the summit was the continued strong backing for China’s Belt and Road Initiative (BRI). Eight of the member states, excluding India, voiced their support for the initiative, emphasizing its potential to enhance regional connectivity by bridging the Eurasian Economic Union (EAEU) and OBOR (One Belt, One Road).
As Prime Minister Shehbaz Sharif highlighted in his opening address, the BRI, along with projects like the China-Pakistan Economic Corridor (CPEC) and the International North-South Corridor (INSC), presents an opportunity for expanding regional infrastructure, with a particular focus on roads, railways, and digital transformation.
“Investment in regional infrastructure projects, such as transport and energy corridors, is crucial for economic integration,” Sharif stated, underscoring the importance of regional collaboration in ensuring that such projects benefit all member states.
Prime Minister Mishustin of Russia also stressed the importance of improving transportation routes to unlock the transit potential of SCO countries. He pointed out Russia’s efforts to build the North-South International Transport Corridor in collaboration with Iran and other Commonwealth of Independent States (CIS), aiming to boost cargo flows and improve connectivity across the region.
Chinese Premier Li Qiang echoed these sentiments, calling for improved regional trade facilitation and connectivity, while Iran’s Minister for Trade and Industry Seyyed Muhammad Atabak emphasized the need to strengthen communication lines and transit corridors as essential components of expanded cooperation.
A Unified Front Against Western Sanctions and Trade Protectionism
In addition to discussions on regional connectivity, the summit took a clear stance against the imposition of unilateral Western sanctions and trade protectionist practices. The joint communique issued by the SCO leaders emphasized that such measures undermine global trade, disrupt international economic relations, and often target the sovereignty of independent nations.
Sanctions against Russia and Iran, two key SCO members, have caused significant economic hardship, restricting access to international markets and hindering growth. Russian Prime Minister Mishustin made it clear that despite the pressure from Western nations, Russia remains focused on internal development and economic stability. He reiterated that the sanctions would not achieve their intended goals.
Similarly, Iranian Minister Atabak described the sanctions against his country as “economic terrorism,” urging the SCO to unite in opposition to what he termed illegal actions by the United States against developing countries.
The SCO member states argued for multilateral cooperation that prioritizes open trade and respect for international law, while rejecting unilateral decisions that undermine global economic cooperation. The leaders also voiced their opposition to protectionist trade policies that obstruct the multilateral trading system and threaten global sustainable development.
SCO’s Financial Ambitions: Development Bank and Fund Proposals
In a significant move to bolster regional economic growth, the SCO leaders discussed the creation of financial institutions designed to enhance economic cooperation among member states. These include the proposed SCO Development Bank, the SCO Development Fund, and the SCO Investment Fund, which will provide alternative financing mechanisms for infrastructure projects, trade facilitation, and regional connectivity.
Prime Minister Sharif welcomed these initiatives, expressing Pakistan’s full support for establishing a funding mechanism that can accelerate various development initiatives across the region. He stressed the importance of settling transactions in mutually acceptable national currencies, reducing dependence on Western financial institutions and currencies.
Chinese Premier Li urged member states to “actively prepare for the establishment of the SCO Development Bank,” signaling China’s commitment to boosting financial cooperation within the SCO framework.
The establishment of these institutions is expected to serve as a counterbalance to Western financial dominance, giving SCO members more autonomy over their economic interactions and reducing reliance on foreign currencies like the US dollar.
Addressing Security Concerns and Regional Stability
Beyond economic cooperation, the meeting also focused on regional security and stability, with particular attention given to shared challenges such as terrorism, extremism, and organized crime. Chinese Premier Li put forward a proposal for strengthening cooperation to combat separatism, terrorism, and extremism within the SCO region, urging member states to collaborate in building a comprehensive center for responding to security threats.
Prime Minister Shehbaz Sharif highlighted Pakistan’s concerns over cross-border terrorism, particularly from Afghanistan. He called on SCO members to press the Taliban regime to ensure that Afghan soil is not used for acts of terrorism against its neighbors. Sharif also urged the Taliban to embrace political inclusivity, a key element in achieving long-term peace in the region.
Dr. S. Jaishankar, representing India, made veiled references to Pakistan in his speech, calling for an end to activities across borders that foster terrorism, extremism, and separatism. Jaishankar’s comments, while avoiding direct mention of Pakistan, underscored the ongoing tensions between the two nations.
Environmental and Cultural Cooperation
Another major theme of the summit was the recognition of climate change and environmental sustainability as crucial challenges facing the region. The SCO leaders committed to stronger cooperation on environmental protection and building resilience to the effects of climate change.
Additionally, cultural diversity and people-to-people diplomacy were acknowledged as essential elements of the SCO’s broader mission. The leaders emphasized the importance of cultural exchanges in fostering mutual understanding and strengthening regional cooperation.
Conclusion: A Path Forward for SCO Cooperation
The 23rd Council of Heads of Government meeting underscored the SCO’s commitment to enhancing regional connectivity, fostering economic growth, and promoting security cooperation. By reaffirming support for China’s BRI, criticizing Western sanctions, and advocating for the establishment of financial institutions, the SCO nations took decisive steps towards greater regional integration and economic self-reliance.
As SCO members continue to work together on key initiatives such as infrastructure development, financial cooperation, and security challenges, the organization is poised to play a critical role in shaping the future of economic and political relations in the region.
The summit concluded with the signing of eight important documents, setting the stage for a new era of cooperation among SCO member states.
This summit highlighted the SCO’s unified vision for a more connected and resilient region, focused on sustainable growth and collective security.
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