Businesses see SCO summit as key to boosting Pakistan’s global image

Businesses expressed optimism about Pakistan hosting the Shanghai Cooperation Organisation Summit, viewing it as a valuable opportunity to build trust with member nations, enhance the country’s global image, and strengthen economic ties with powerful regional giants.

They hope that interaction with dignitaries will significantly improve the trade environment, further energizing the country’s growth momentum and boosting economic activity by tapping into underutilized potential. Pakistan’s economy has turned a corner, overcoming hyperinflation, stabilizing the external sector, curbing currency market volatility and securing the $7 billion, 37-month IMF Extended Fund Facility.

Despite internal political strife and security challenges, consumption, production, imports, exports and remittances are showing positive trends. However, the recovery remains fragile and requires careful policy management, especially in light of the volatile situation in the Middle East and its potential impact on oil prices, trade routes and logistic costs.

They hope the current summit will serve as a significant milestone in advancing the goals of the Shanghai Cooperation Organisation (SCO), an intergovernmental forum which represents three billion people, about 40 per cent of the global population. In 2023, its combined GDP stood at $24.2 trillion, roughly one-quarter of the world’s total GDP, and it holds vast reserves of oil (20pc) and gas (44pc). The SCO key objectives include: strengthening mutual trust, friendship and good-neighbourly relations among members; fostering cooperation in politics, trade, economy, science and technology, culture, education, energy, transport, tourism, environmental protection; ensuring peace, security and stability in the region; and promoting a new democratic, fair and rational international political and economic order.

Experts in economic diplomacy view this as a major breakthrough and a crucial opportunity for Pakistan to capitalise on its strategic geography. By positioning itself as a logistic hub, the country can serve as a link between East and West Asia and beyond, as well as Central Asian states, through both land and sea routes.

Official circles hailed the participation of heads of state from several member nations, along with delegations from observer and dialogue partner nations as a significant diplomatic achievement. “There has been reluctance to visit Pakistan for years. The fact that so many leaders and dignitaries have gathered in Islamabad is a major accomplishment in itself. It has brought Pakistan out of shadows and back into global spotlight. Whether this translates into tangible benefits for the economy and the people depends on how effectively the government follows up on the opportunities created during the event”, a senior member of the ruling coalition privately remarked.

The SCO comprises nine member states: China, Russia, Iran, India, Pakistan, Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan. Additionally, it has three observer nations, Afghanistan, Belarus and Mongolia, and 14 dialogue partners including Azerbaijan, Armenia, Bahrain, Egypt, Cambodia, Qatar, Kuwait, Maldives, Myanmar, Nepal, UAE, Saudi Arabia, Turkey and Sri Lanka.

Dr Manzoor Ahmed, Pakistan’s former permanent representative to the World Trade Organisation, highlighted that Pakistan’s opportunity to host the SCO Summit came as a result of its rotational chairmanship of the organisation. He emphasised that the SCO platform offers Pakistan a chance to rebalance its foreign policy, which has historically been tilted towards Western countries.

“The regional interaction can also facilitate normalization of bilateral relations, particularly with Afghanistan and improve Pakistan’s security situation”, he noted.

Dr Ahmed urged the government to promote Pakistan as the most viable trade route for SCO countries. “We should strive to link the CPEC with North-South Corridor, which currently bypasses Pakistan and connects Russia, Central Asia, Iran and India. The Summit could also help revive long-stalled energy projects like the Tajikistan Afghanistan Pakistan India and Peace pipelines”, he added.

Arif Habib, business magnate, capital market trader and founder of Arif Habib Group, viewed the SCO Summit in Islamabad as a recognition of Pakistan’s commitment to the organization’s goals. He emphasised that in addition to fostering closer ties between participating countries, the summit could enhance trade volumes across the region.

“A peaceful and friendly environment leads to increased economic activity, boost business confidence and promotes trade. This can help us discover new export markets and explore better options for sourcing imports”, he remarked.

Muhammad Asif, a marketing expert with experience across multiple companies and currently associated with a real estate organisation, expressed optimism about the SCO Summit. He highlighted that businesses view the summit as a great development with far-reaching potential. Citing reasons for the SCO-related enthusiasm. He pointed to the possibility of enhanced regional trade, including the potential creation of a free trade zone among member states, and the use of a strong regional currency to facilitate smoother transactions.