Executive Summary the formulation of the Delhi Declaration, which

focuses on several points.

The Shanghai Cooperation Organization (SCO) is a
regional intergovernmental organization established to Against this backdrop, the Institute of Policy Studies
promote cooperation, particularly in the areas of organized a roundtable discussion titled “Regional
politics, economics, culture, education, technology, Cooperation in the Eurasian Region: Role of the SCO”
and security. The organization, founded in 2001 with on July 20, 2023. The roundtable was addressed by
six member states, quickly gained prominence in Ambassador (r) Masood Khalid, Pakistan’s former
international affairs. It expanded its reach and ambassador to China, Dr. Sarwat Rauf, associate
influence in 2017 when Pakistan and India joined it as professor at NUML, Ambassador (r) Abdul Basit,
member states. With that, it became the largest Pakistan’s former high commissioner to India,
intergovernmental organization regarding its Ambassador (r) Syed Abrar Hussain, vice chairman
geographic scope and population. It now has nine IPS, Mehr Kashif Younis, former senior vice president
member countries, with Iran joining it as the youngest Lahore Chamber of Commerce & Industry, Dr. Faisal
member. Javed, assistant professor at FUUAST, Karachi, and
Prof Dr. Fakhr-ul-Islam, director research and
While the SCO holds promise as a viable institution, academic outreach, IPS.
the presence of regional disputes, notably between
India and Pakistan, has the potential to impede the While evaluating the summit’s outcomes, the forum
organization’s effectiveness. Additionally, India’s assessed the significance of the SCO as a crucial
unyielding approach and its history of handling platform for fostering regional stability, economic
SAARC affairs raise concerns about the possibility of development, and connectivity in the Eurasian region,
India leveraging the SCO for its gains again. However, with a particular focus on Pakistan. Key takeaways of
the Chinese presence in the organization provides a the discussion are briefly discussed in the following
gleam of hope. Given China’s considerable economic sections.
influence and strength, there is optimism that it could An Overview of SCO
play a stabilizing role in maintaining peace within the
organization. The SCO has the potential and capability The SCO is a Eurasian political, economic, security,
to generate synergy, promote regional stability, and defense organization that was established in 2001.
economic development, and connectivity in the It is the world’s largest regional organization in terms
Eurasian region, and be a feasible alternative to of geographic scope and population, covering
SAARC, given that the regional disputes are resolved approximately 60% of the area of Eurasia and around
and do not disrupt the working of the organization. 42% of the world’s population. Its combined GDP is
around 20% of the global GDP. The founding
India hosted the most recent SCO summit on July 4,
countries, apart from China and Russia, include four
2023. The summit, held virtually, revolved around the
Central Asian countries – Uzbekistan, Kazakhstan,
pivotal themes of security, connectivity, cooperation,
Kyrgyzstan, and Tajikistan. It currently has nine
development, and economics. The summit resulted in
members; Iran became a member in July 2023,

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whereas Pakistan and India joined in 2017. There are The declaration unequivocally supported all efforts of
three observer states, including Afghanistan, Belarus, disarmament while favoring strict observance of NPT,
and Mongolia, and six dialogue partners: Armenia, opposing the unilateral expansion of global missile
Azerbaijan, Cambodia, Turkey, Nepal, and Sri Lanka. defense systems, standing for promoting multilateral
arms control, and advocating keeping outer space free
The SCO’s supreme decision-making body – the
of weapons. It further emphasized the importance of
Heads of State Council (HSC) – meets once a year, and
BTWC (Biological and Toxin Weapons Convention),
the recent summit in India was a meeting of this forum.
calling for full compliance with CWC (Chemical
The main objectives of the SCO are to strengthen
Weapons Convention) and supporting OPCW
political security and economic cooperation; confront
(Organization for the Prohibition of Chemical
threats emanating from terrorism, extremism, and
Weapons). With that, the declaration endorsed various
separatism; move towards developing a democratic
measures aimed at an early entry into force of the
and equitable international political order; ensure joint
Protocol on Security Assurances to the Agreement on
efforts in maintaining peace, security, and stability in
a Nuclear-Weapon-Free Zone in Central Asia. The
the region; and deepen engagements in trade,
signatories fervently called upon all the participants to
commerce, transport, tourism, environment, cultural
fulfill their obligations for the implementation of the
linkages, education, research, and technology.
Joint Comprehensive Plan of Action (JCPOA) on the
The SCO countries represent more than 42% of the Iranian nuclear program.
global population, forming a significant consumer
The current situation in Afghanistan also came under
market, thriving technology parks, a large bulk of the
discussion with the aim of a better future for the
young population, and covering 22% of the world’s
country and the region. Firstly, the parties advocated
land mass. Notably, SCO has all the potential for
building Afghanistan as an independent, neutral,
greater benefits. However, several obstacles, such as
united, democratic, and peaceful state, free of
historical conflicts and widespread political unrest,
terrorism, war, and drugs, with an inclusive
have hindered cooperation.
government. Secondly, the dignified, safe, and
Central Theme and Focus of the SCO Heads of sustainable return of Afghan refugees was stressed.
State Council Meeting Thirdly, given the evolving humanitarian situation in
Afghanistan, a determination to support continued
The recent SCO meeting in India centered around efforts to assist the Afghan people was shown.
‘Secure SCO,’ a comprehensive framework within
which S represented security, E stood for economic Reaffirming their support for China’s Belt Road
development, C symbolized connectivity, U signified Initiative (BRI), all member countries (except India)
unity, R denoted respect for sovereignty and territorial noted the ongoing work to jointly implement this
integrity, and E encompassed environmental project, including efforts to link the construction of the
protection. A crucial aspect of the summit was the Eurasian Economic Union and BRI.
Global Security Initiative (GSI), presented by Chinese In addition to that, the members agreed to declare 2024
President Xi Jinping, who called for political as the SCO Year of Environment. Finally, the intent to
resolutions to international and regional conflicts to strengthen cooperation in education, culture, health,
establish a solid security shield in the region. disaster management, tourism, sports, and science and
The New Delhi Declaration can be highlighted as the technology was also reiterated.
pivotal achievement of the summit. It is an Views of the Heads of the Key Member States
unprecedented agreement that fervently advocates for
the commitment of the participating countries to Chinese President Xi Jinping stressed remaining
peacefully settling their disputes; countering activities vigilant against external attempts to spark a new cold
of terrorist, separatist, and extremist groups; and war and provoke unnecessary conflicts within the
eliminating conditions conducive to the spread of region. Russian President Vladimir Putin indirectly
terrorism. The parties also expressed concerns about attributed Ukraine’s anti-Russian sentiment to
the production, trafficking, and abuse of narcotic drugs external forces. Indian Prime Minister Narendra Modi
and expressed intentions to conduct joint drug highlighted the significance of connectivity. Still, at
operations. In addition to that, they opposed the the same time, he stressed the need to respect
militarization of information and communications member states’ sovereignty and regional integrity
technologies (ICTs). while criticizing ‘cross-border’ terrorism. Pakistan’s

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Prime Minister Shahbaz Sharif emphasized the need to visible, and only by resolving bilateral disputes among
fight all forms of terrorism but asked not to use it as a countries, any concrete contribution can be made
cudgel for point scoring. In addition to that, he toward realizing the potential of SCO. China and
underlined the need for connectivity and highlighting Russia, the two major stakeholders of SCO, can play a
the importance of engaging Afghanistan. vital role in keeping the forum effective and
preventing any effort to neutralize it.
Bilateral Disputes: A Major Irritant to
Functioning of SCO China as a Mediator in the India-Pakistan
Conflict?
The SCO is confronted with numerous bilateral
disputes at global and regional levels. An organization The Indian ambition to act as the policeman, rather
is established on poor foundations when bilateral hegemon, in South Asia is quite visible now. Due to
relations among member states are in a perpetual state this ambition, SAARC met its fate since India was
of hostility. This had been observed in the case of unable to influence the bloc in the presence of
SAARC, and now the apprehension is that SCO will Pakistan. The present hardline government of India
face the same situation. The US considers China, a has now adopted a policy to unilaterally decide the fate
growing superpower, as its global competitor. The US of issues that have historically been of bilateral
has been counter-poisoning India to partner and work concern between India and Pakistan. In this regard, the
against China, and their strategic partnership is revocation of the special status of Indian-Occupied
evolving and growing very rapidly, which could have Kashmir on August 5, 2019, is self-explanatory.
implications for the SCO. Considering this behavior, Pakistan has been
practically refraining from directly dealing with India.
Similarly, Pakistan and India have serious conflicts,
It is essential for the SCO members to draw attention
particularly over the disputed territory of Jammu and
to India’s ambitions to be a dominant player in the
Kashmir. The situation has become more complicated
region and its growing aspirations to become a global
after August 5, 2019, because currently, there is no
power. This indicates a need to understand and address
diplomatic channel between the two regional powers.
the interests of India in the international arena.
In such a situation, it is rather unclear how regional
cooperation among Asian powers can materialize China, being a leading player on the global stage, can
through SCO. Statements being made at the play a vital role in engaging with India. While trade
international level are good, but the issues revolving relations between India and China may be increasing,
around SCO are pretty grim. it is crucial to recognize the historical military standoff
between the two, which adds complexity to their
India is the biggest hurdle in the growth and effective
relationship. In light of this, China emerges as a
functioning of the SCO as it has serious problems with
potential mediator in solving regional issues involving
both China and Pakistan. In its present form, the SCO
India. The diplomatic skills and experience of the
has very limited prospects, if any. Since SAARC has
Chinese nation could prove valuable in fostering a
become dormant, India realized well that SAARC
peaceful resolution and promoting regional stability.
cannot progress as long as Pakistan-India disputes
Moreover, Chinese support for Pakistan’s stance on
exist. Hence, India started exploring and promoting
various platforms may provide a foundation for a
sub-regional initiatives like the Bay of Bengal
constructive dialogue. By leveraging this alignment,
Initiative for Multi-Sectoral Technical and Economic
China can act as a bridge between India and Pakistan,
Cooperation (BIMSTEC) and the Bangladesh,
encouraging productive discussions and finding
Bhutan, India, Nepal Initiative (BBIN) in South Asia.
common ground on contentious matters. Considering
Similarly, India’s focus now is more on the
the complexity of geopolitical dynamics, engaging
International North-South Transport Corridor rather
China as a mediator offers a chance to navigate
than the BRI, and this difference of opinion was very
sensitive issues and facilitate cooperation
visible in the statements of President Xi and Prime
Minister Modi. In addition to that, Modi, in his In conclusion, Pakistan should work on fostering its
statement, mentioned Iran’s Chabahar port to connect diplomatic relations with China and utilize its
South Asia with landlocked Central Asia. diplomatic expertise to address regional harmony
concerns. By doing so, it can work out constructive
On the other hand, Prime Minister Shahbaz Sharif
solutions and promote a peaceful and stable
stressed making the BRI a bridge between South Asia
environment in the region.
and Central Asia. The differences, therefore, are quite

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How are Pakistan-India Relations increases, enhancing its role on the global stage and
Contributing to SCO’s Situation? strengthening regional security and stability.
Additionally, new members open doors for greater
The term ‘connectivity’ seems very nice and flowery, economic cooperation and development, expanding
but at the end of the day, it is the realpolitik that drives existing initiatives in free trade, investments, and trade
the diplomacy of states. Every state prefers its interests facilitation.
first and foremost, and many times, diverging interests
The SCO’s expansion has implications for cooperation
of members become an obstacle to the functioning of
in energy resources as well. With member states
multilateral arrangements like SAARC and SCO. In
already holding substantial portions of the world’s
the case of Pakistan and India, the positions have
proven oil and gas reserves, the organization may
hardened over the years, especially since 2019, and
potentially position itself as a political challenger to
there does not seem to be much bilateral space left
unipolarity, advocating for a new democratic and
between the two to continue mutual talks. One option
rational international order. Moreover, the expansion
for Pakistan and India is to engage with each other
can help balance the influence of Western powers in
behind the public view through third-party mediation.
the region, alleviating financial pressures on the
This option can only materialize if India is willing to
organization from international institutions.
address the Jammu and Kashmir issue upfront. This
will increase the productivity of the SCO and prevent However, challenges accompany the expansion.
the forum from being riddled with other issues along Unresolved bilateral issues and rivalries, as seen
with global variables directly impinging on its between India and Pakistan or China and India, can
functioning. strain the organization’s cohesion, especially with a
focus shift from Central Asia to the Middle East and
Indications and Prospects for SCO’s South Asia. Scholars have expressed concerns about
Expansion the symbolic nature of the SCO’s expansion,
The SCO started in 2001 with six members and emphasizing the need for tangible institutional
expanded to eight in 2017 when India and Pakistan development to maintain the organization’s
joined as full members. The number has reached nine, effectiveness.
with Iran becoming the youngest full member this Overall, the SCO’s expansion represents a pivotal
year. moment in shaping regional dynamics and global
Primarily, the organization was focused on politics. With new members, the organization gains
strengthening mutual confidence and good-neighborly greater influence and economic opportunities, but
relations among the member countries; promoting addressing challenges and maintaining cohesion will
effective cooperation in politics, trade and economy, be crucial for harnessing the true potential of the
science and technology, culture as well as education, expanded SCO. As this dynamic process unfolds, it
energy, transportation, tourism, environmental undoubtedly impacts the future trajectory of Asia and
protection, and other fields; making joint efforts the global order at large.
to maintain and ensure peace, security and stability Implications of the Summit for Pakistan and
in the region, and moving towards the establishment
Actionable Recommendations
of a new, democratic, just and rational political and
economic international order. Over the years, SCO has Pakistan should remain focused as it is a trade hub, and
grown significantly, welcoming three observer states the importance of its geo-strategic location cannot be
as full members. It currently comprises four nuclear ignored. Currently, several projects are underway in
powers, two members with veto power in the UNSC, collaboration with the Central Asian Republics, such
includes the world’s most populous countries and the as CASA 1000, which has garnered support from
second-largest economy. The member states, various organizations. While initially backed solely by
especially those in Asia like Kazakhstan, Iran, and the US, the project now enjoys the assistance of the
Uzbekistan, possess abundant natural resources, International Development Association. Another
making them influential in the organization. prominent project that has captured media attention is
the Trans-Afghan Transport Corridor. Additionally,
The expansion in its membership indicates a
the Railway Corridor being constructed in partnership
promising future for the organization. With each new
with Uzbekistan will create a vital link between
member, the SCO’s influence in regional affairs
Termez and Peshawar through Kabul. These projects

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are highly feasible, but their success is conditional on Movement (ETIM), which sought to promote
improvement in the security situation and political separatism in its Xinjiang province. Meanwhile,
stability in Afghanistan. Russia was grappling with challenges in regions like
Chechnya and Dagestan, prompting its interest in
Pakistan needs to effectively respond to the Indian
fostering regional stability. The Central Asian
propaganda of being a terror-sponsoring state. The
Republics were also coping with security issues, like
echo of this falsifying propaganda has multiplied
the civil war in Tajikistan and the spillover effects of
during the Modi-led government. It is not only
terrorism from neighboring Afghanistan. These
confined to the high circles of government but Indian
compelling factors culminated in the formation of
academicians and students abroad are very active in
SCO, which initially emerged as the Shanghai-5 and
building this narrative. This may tarnish Pakistan’s
expanded in 2001 to turn into a six-member
image in the region and beyond. In response, it is
organization.
imperative for the Pakistani government to shift its
focus toward academia. Facilitating collaborative Three multilateral organizations are prominent and
research initiatives could play a pivotal role in relevant according to the region’s current landscape,
enhancing the nation’s soft image. Furthermore, and upon close analysis, a distinct pattern emerges
cultural diplomacy and tourism demand significant among them. The first organization, SAARC, is
attention. dysfunctional, while the second, ECO, is also dormant.
Contrastingly, the SCO is the only one that has gained
India has also been very active in creating multilateral
strength over time and is continuously evolving and
forums where Pakistan is not present, often referred to
focusing on regional cooperation, integration, and
as “minus one” arrangements. Given the longstanding
mutual growth among member states. The
India-Pakistan rivalry, this strategy allows India to
organization has different cooperation mechanisms
engage more freely without the complexities that arose
and expert groups, which frequently hold meetings
in SAARC or may potentially occur in the SCO.
and joint exercises.
Pakistan could also consider taking the lead in
establishing multilateral forums without India’s The number of dialogue partners and observers
presence to foster regional cooperation and address associated with the SCO and the pace at which
common challenges more effectively. The India- countries are getting involved and becoming members
Pakistan rivalry has significantly affected SAARC’s demonstrates the growing influence and demand of the
functioning and progress, which could also have organization. The heightened interest of different
implications for the SCO’s effectiveness in the future. states can be attributed to the ever-changing nature of
their foreign policies. In an era where there is
By focusing on forums where India is absent, Pakistan
continuous competition between the US and China,
may find greater scope for regional cooperation and
countries are hedging their positions and want to be
initiatives that promote peace and development.
part of such organizations where they do not have to
Collaborating with Central Asian countries and China,
choose sides, nor do they have to be taught lessons on
for example, could create alternative avenues for
particular definitions of human rights and governance
bolstering regional ties and enhancing Pakistan’s
systems. The joint statement issued in Delhi this year
presence on the global stage.
solidifies this trend, as it outlines a collective stance
A Positive Future with SCO: Prospects and against unilateralism and protectionism. By promoting
Challenges multipolarity and rejecting the alleged hegemony of
Western powers led by the US, this statement reflects
Over the course of two decades, the SCO has a shared sentiment among many nations.
undergone significant evolution. When it was initially
conceived and launched, its foremost focus was Secondly, differences and disputes among countries
centered on security concerns, particularly in are inherent to international relations. All multilateral
countering terrorism, extremism, and separatism. organizations are affected in one way or another by
These priorities were evident in every document geopolitical permutations and contests among regional
related to the organization. The driving forces behind and global powers. The Pakistan-India conflict is no
the establishment of SCO were multi-faceted. different. Conflicts exist between the US and China
and even among Central Asian countries like
China’s motivation stemmed from its concerns Kyrgyzstan, Tajikistan, and Uzbekistan. Yet these
regarding groups like the East Turkestan Islamic disagreements cannot overshadow their keen interest

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in promoting economic cooperation and enhancing peace and stability along with greater economic
trade relations, and connectivity. cooperation and development of the
organization’s existing initiatives. Turkey has
The geopolitical environment is shaping in favor of
shown interest in becoming the organization’s
Pakistan. Attention should be given to India’s ability
full member. Its entry will be pivotal not only for
to sabotage or impede the process of the SCO, but it
the country itself but will also promote regional
must be made sure that these designs are not
connectivity further.
overemphasized. The fact that Pakistan and India
share a platform under Chinese leadership converts  Given the security concerns related to terrorism,
balance in Pakistan’s favor and opens up new avenues extremism, and separatism, the SCO countries
for dialogue between the two rivals. To effectively should strengthen their collaboration in
utilize the organization to pursue its regional interests, addressing these common security threats. They
Pakistan must put its house in order first. Pakistan’s can do this through intelligence sharing, joint
policy circles are duty-bound to do effective military exercises, and coordinated counter-
homework and use it to the country’s advantage. terrorism efforts.
 The SCO members should actively engage in
Policy Recommendations conflict resolution efforts. This includes
encouraging diplomatic dialogue and mediation
 The Eurasian region possesses unique
in regional disputes, such as those between India
characteristics, which makes it an attraction for
and China, or between India and Pakistan, to
foreign powers. Power dynamics have visibly
prevent spillover effects.
been shifting from the West to the East, and the
 Collaboration between member states on projects
role of the SCO members is undeniable in this
related to renewable energy is crucial. This could
regard. Against this backdrop, the SCO countries
involve joint research, exploration, production,
need to talk and sort out their mutual problems
and distribution of renewable energy resources,
themselves and should not rely on or be
ultimately leading the region to reduce emissions
influenced by extra-regional powers.
from traditional energy sources.
 Pakistan and India should show some flexibility
 The SCO member states need to foster greater
diplomatically to promote regional connectivity.
understanding and trust by encouraging
China and Russia, the two key members of the
academic, cultural, and tourism cooperation on a
SCO, can play a vital role in bringing the two
bilateral and multilateral basis to build stronger
neighbors towards dialogue.
people-to-people ties.
 Expansion of the SCO will enhance its
organizational capabilities in ensuring regional

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Prepared by:
Mariyam Ehsan
Project Associate
Institute of Policy Studies, Islamabad

For queries:
Naufil Shahrukh
General Manager Operations
Institute of Policy Studies, Islamabad
[email protected] | www.ips.org.pk

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