IRIA News

9 minute read

Leaders and top officials of the 10-member Shanghai Cooperation Organization (SCO) agreed to bolster strategic coordination and economic collaboration among member states, focusing on trade ties and regional stability. They also collectively opposed “unilateral sanctions” that hinder trade, and advocated for a more equitable global trade environment, according to the joint communiqué.

The 23rd meeting of the Council of Heads of Government of SCO, a Eurasian security and political group, was held amid tight security in Islamabad on October 15 and 16, 2024.

The discussions underscored the significant potential for deepening trade ties and initiatives aimed at decarbonizing transport, driving digital transformation, and developing innovative technologies, as well as enhancing ports and logistics centers to strengthen economic partnerships and ensure sustainable growth across the region.

The summit was hosted by Pakistan’s Prime Minister Muhammad Shehbaz Sharif. The meeting brought together leaders from SCO member states China, Russia, Pakistan, India, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus as they deliberated on various pressing geopolitical and economic challenges confronting the region.

At the meeting, Chinese Premier Li Qiang called for deeper cooperation among member states to enhance regional peace and prosperity. He suggested the formulation of a ten-year development strategy, expanded practical collaboration in poverty reduction and green development, a focus on collective security challenges and people-to-people exchanges to strengthen bonds between nations. Li affirmed China’s commitment to translating these proposals into actionable results for the benefit of all member states.

Key dignitaries at SCO summit in Islamabad

Chinese Premier Li Qiang kicked off a high-profile diplomatic visit to Islamabad on October 14, setting the stage for the 23rd Meeting of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO), which was held from October 15 to 16.

The summit attracted a notable lineup of regional leaders, including Russian Prime Minister Mikhail Mishustin, Mongolian Prime Minister Luvsannamsrain Oyun-Erdene, Belarus Prime Minister Roman Alexandrovich Golovchenko, and Kazakhstan’s Olzhas Bektenov. Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek  Zhaparov, Tajikistan Prime Minister Kokhir Rasulzoda and Uzbekistan Prime Minister Abdulla Aripov were also among the attendees.

With SCO leaders at the 23rd SCO CHG meeting in Islamabad. pic.twitter.com/8J0JF5aOdE

— Shehbaz Sharif (@CMShehbaz) October 16, 2024

Other notable attendees included Indian Foreign Minister S. Jaishankar, Turkmenistan Foreign Minister Rasit Meredow and Iran’s Minister of Industry, Mine, and Trade of Iran, Seyed Mohammad Atabak alongside SCO Secretary-General Zhang Ming.

Islamabad under tight security during SCO summit

Pakistan’s capital remained under tight security as SCO leaders arrived for the summit. Pakistani government declared a three-day public holiday in Islamabad, shutting down schools and businesses citing security of the summit. Soldiers and paramilitary forces have been deployed, particularly around the Red Zone, home to the parliament and diplomatic missions.

The summit comes amid heightened tensions as Pakistan went under several terrorist attacks right ahead of the SCO summit, including the one in Karachi that claimed the lives of two Chinese citizens. At the same time, the opposition Pakistan Tehreek-e-Insaf (PTI) party called for protests following the imprisonment of its leader, Imran Khan, which further complicated the security situation in the city.

China’s Li Qiang vows increased economic cooperation with Pakistan

Chinese Premier Li Qiang’s visit to Pakistan marks the first by a Chinese premier in 11 years, highlighting a renewed focus on bilateral ties. Upon his arrival in Islamabad, Li was welcomed by Prime Minister Shehbaz Sharif, who emphasized the importance of the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

Li reiterated China’s commitment to upgrading this key project and enhancing counterterrorism cooperation. “China is willing to work with Pakistan, focusing on establishing an upgraded version of the CPEC,” Li told Pakistani Prime Minister Shehbaz Sharif.

During the visit, the two leaders inaugurated the New Gwadar International Airport, which Sharif hailed as a “gift from China” and a symbol of ongoing economic collaboration. He expressed hope that the airport would bolster Gwadar’s and Pakistan’s economy. The ceremony also included the signing of memoranda of understanding in various sectors.

The CPEC-funded Gwadar International Airport is located in Balochistan, a region that stands at the center of Chinese investments in Pakistan. However, it grapples with significant security challenges, including frequent militant attacks, which pose ongoing threats to stability and development in the area.

SCO’s stand against sanctions

In a joint statement released after the meeting, the SCO criticized “unilateral sanctions” and protectionist trade measures as contrary to the spirit of international trade laws. The statement emphasized that such actions by Western powers are not only disrupting global supply chains but are also negatively impacting third-party countries. The SCO further declared its commitment to combating such measures through continued collective efforts among its member states.

China, Russia, and Iran, countries facing the brunt of Western sanctions, have been vocal critics of unilateral measures that bypass international consensus. The meeting also addressed the broader geopolitical implications of these sanctions, with leaders of sanctioned states expressing concerns about how these restrictions were curbing economic growth and deterring smaller countries from engaging in trade with them. Russia and Iran possess vast energy resources, but sanctions have limited their ability to fully tap into global markets. This has been a source of frustration for energy-dependent nations like Pakistan, which has struggled to pursue cost-effective energy deals with neighboring Iran due to fear of U.S. sanctions.

Expanding BRI

At the heart of the summit was also a call for expanding China’s Belt and Road Initiative (BRI), which has emerged as a pivotal infrastructure and economic development project for many countries across Asia, Africa, and Europe. Pakistan’s Prime Minister Shehbaz Sharif, in his address, highlighted the importance of BRI projects like the China-Pakistan Economic Corridor (CPEC) in fostering regional integration through the development of roads, railways, and digital infrastructure.

“Flagship projects like the Belt and Road Initiative of President Xi Jinping, the China-Pakistan Economic Corridor…should be expanded, focusing on developing road, rail, and digital infrastructure that enhances integration and cooperation across our region,” he stated. “Let us not look at such projects through the narrow political prism, and [instead] invest in our collective connectivity capacities, which are crucial to advancing the shared vision of an economically integrated region,” Sharif said, adding that 40% of the world’s population lives in SCO member countries.

The BRI aims to connect Asia with Africa and Europe through a vast network of land and maritime routes, facilitating global trade and investment. More than 150 countries have signed on to the initiative, with Pakistan playing a central role in the CPEC, a $62 billion project that has already seen China pump significant investments into Pakistan’s road networks, ports, and airports.

However, the BRI has not been without its detractors. Western countries, under the G7 platform, have framed it as a geopolitical tool for China to expand its influence, and in response, they have launched their own $600 billion infrastructure initiative. Despite the criticisms, the SCO members at the summit reiterated their support for BRI projects, emphasizing the benefits of enhanced connectivity and cooperation across the region.

China, Russia, and Mongolia trilateral meeting at SCO summit

In another significant development during the meeting, Chinese Premier Li Qiang held a trilateral meeting with Russian Prime Minister Mikhail Mishustin and Mongolian Prime Minister Luvsannamsrai Oyun-Erdene. The three leaders discussed deepening economic cooperation, focusing particularly on the China-Mongolia-Russia Economic Corridor. The corridor, a key element of the BRI, aims to enhance transportation links and energy collaboration among the three countries.

China’s Premier Li expressed his commitment to pushing trilateral cooperation forward by implementing a medium-term roadmap, strengthening policy communication, and sharing development opportunities. The aim, Li said, was to create a model of friendly cooperation among neighboring countries, emphasizing mutual benefits and sustainable development.

The Russian and Mongolian sides echoed these sentiments, reaffirming their intent to align their economic strategies, such as Russia’s Eurasian Economic Union and Mongolia’s Steppe Road program, with China’s BRI. The three countries are poised to work together on critical areas such as transportation, energy, and cultural exchanges.

India’s veiled message to Pakistan

While the summit largely showcased regional unity, there were moments of tension, particularly between India and Pakistan. Indian External Affairs Minister S. Jaishankar delivered a strong message during the meeting, asserting that efforts to improve trade, connectivity, and energy flow in the region would only succeed if countries adhered to the SCO’s founding principles, especially the commitment to counter the “three evils” of terrorism, extremism, and separatism.

This was widely seen as a veiled critique of Pakistan, with whom India has a long-standing rivalry. Jaishankar’s remarks followed Pakistan’s suggestion that the China-Pakistan Economic Corridor (CPEC) could be expanded and integrated into the broader SCO connectivity framework. India has consistently opposed CPEC, as it passes through the disputed region of Kashmir, which both India and Pakistan claim.

Jaishankar’s presence at the summit was significant in itself, marking a rare visit by a senior Indian official to Pakistan. While the Indian minister made it clear that his participation was focused on SCO matters rather than bilateral relations, his attendance was viewed by some as a sign of the stabilizing, if still cold, relations between India and Pakistan.

Broader implications 

The Islamabad summit underscored the growing importance of the SCO as a platform for countering Western economic dominance and promoting a multipolar world order. The SCO, which was originally founded in 2001 as a security-focused group, has evolved into a comprehensive platform addressing political, economic, and security issues across Eurasia.

With major players like China, Russia, and India as members, the SCO has emerged as a critical counterweight to Western alliances such as NATO and economic groupings like the G7. The organization’s focus on regional stability, multilateralism, and economic cooperation presents a stark contrast to what its members perceive as Western unilateralism and interventionism.

The next meeting of the SCO will be held in Russia in 2025.