Ishaq Dar calls for stronger SCO economic integration

ISLAMABAD – Deputy Prime Minister and Foreign Minister Ishaq Dar yesterday called for stronger economic integration among Shanghai Cooperation Organisation (SCO) member states, proposing enhanced trade links, local currency settlements, improved cross-border payment systems and expanded international partnerships to unlock the region’s economic potential.
Addressing the expanded-format session of the SCO Council of Heads of Government (CHG) in Dushanbe, Dar also reaffirmed Pakistan’s commitment to diplomatic efforts aimed at de-escalating tensions in West Asia and the Gulf, saying dialogue and peaceful resolution of disputes remained the most effective means of achieving lasting regional stability.  “Pakistan remains engaged in mediation efforts between the US and Iran,” Dar said, reiterating Islamabad’s support for constructive diplomatic engagement and collective solutions to regional challenges.
He stressed that regional disputes required cooperative, sustainable and multilateral approaches, underscoring Pakistan’s commitment to promoting peace, stability and closer regional coordination. The DPM described Pakistan as a natural bridge connecting South Asia, Central Asia and Eurasia, highlighting the country’s commitment to regional harmony, trade, transit connectivity and economic integration.
Reaffirming Pakistan’s adherence to the SCO’s founding principles and the “Shanghai Spirit”, Dar said mutual trust, sovereign equality, consultation, respect for cultural diversity and shared prosperity must continue to guide cooperation among member states. Congratulating Tajikistan’s Prime Minister Qohir Rasulzoda on successfully hosting the meeting, he also expressed appreciation for the hospitality extended by the Tajik leadership and government to participating delegations. Outlining Pakistan’s proposals for advancing economic cooperation, Dar called for revitalising the SCO Chambers of Commerce and Business Council to strengthen direct business-to-business engagement, organise joint trade exhibitions and simplify customs procedures, particularly to facilitate small and medium-sized enterprises. He said closer commercial engagement among member states could help expand intra-regional trade, create new business opportunities and translate the organisation’s collective economic potential into tangible benefits for its populations. Dar also emphasised the need to strengthen the SCO Interbank Consortium (IBC), advocating faster progress towards local currency settlements and more integrated cross-border payment systems.
Dar said stronger financial cooperation would help mitigate external financial risks, facilitate trade financing and improve the movement of capital across the region. He proposed that the Interbank Consortium play a more active role in financing infrastructure development while work towards establishing an SCO Development Bank remained pending.
Dar noted that Habib Bank Limited, which currently chairs the IBC, could contribute to advancing this agenda through closer coordination with financial institutions from other member states. He called for expanding the SCO’s institutional engagement with international and regional organisations, including the United Nations, the Association of Southeast Asian Nations and the Economic Cooperation Organization, as well as international and regional financial institutions.
Such partnerships, he said, would reinforce an open, inclusive and rules-based regional order while creating additional avenues for economic cooperation.
Highlighting the organisation’s growing international significance, Dar said the SCO had evolved over its 25-year existence from a regional confidence-building platform into a major transcontinental organisation representing more than 40 per cent of the world’s population. He said adherence to sovereign equality and consensus had enabled the organisation to contribute to regional peace, address shared security challenges and establish a foundation for greater Eurasian connectivity.
The expansion of intra-SCO trade, he added, demonstrated that multilateral cooperation could serve as an effective driver of stability and sustainable development. Dar observed the SCO region, positioned at the crossroads of major international trade corridors and endowed with substantial natural resources, technological capabilities and human capital, possessed considerable potential to become an engine of global economic growth.
He called on member states to harness these strengths to accelerate digital transformation, promote industrial development and advance sustainable economic growth across Eurasia.
Looking towards the next 25 years, he urged the organisation to adopt a forward-looking strategy centred on technological innovation, climate resilience, energy security and secure supply chains. He also stressed the importance of operationalising Eurasian energy and transport corridors and deepening people-to-people contacts through cultural exchanges and educational partnerships.
Dar congratulated Uzbekistan’s prime minister on assuming the chairmanship of the SCO Council of Heads of Government for 2026-27 and reaffirmed Pakistan’s commitment to strengthening cooperation within the organisation. He also expressed Pakistan’s anticipation of hosting SCO heads of state at the Council of Heads of State summit in Islamabad in August 2027, describing the upcoming gathering as an important opportunity to advance the organisation’s shared objectives.
Dar reiterated Pakistan’s resolve to work towards a peaceful, interconnected and prosperous SCO community, stressing that closer cooperation among member states was essential to securing enduring prosperity for their peoples.