Pakistan and SCO

The Shanghai Co-operation Organisation's (SCO) Secretary General Muratbek Sansyzbayevich Imanaliev has said that the body was assessing the membership applications, submitted by observer states, which included Pakistan, Iran, Afghanistan and India.
When the Shanghai Five, the forerunner of the SCO, was founded in 1996 with China, Russia, Kazakhstan, Kyrgystan and Tajikistan as members, the idea was to address the security concerns of the five states, which were defined as terrorism, separatism and extremism. In 2001, with the induction of Uzbekistan as a new member, the organisation was re-christened as SCO. With the passage of time, social and economic co-operation have also been added to the original objectives.
In 2003, the SCO signed a framework agreement to enhance economic co-operation among member states. Establishment of a free-trade area was presented as the long-term goal. Meanwhile immediate steps were taken to improve the flow of goods in the region. At the 2005 Moscow Summit of the SCO, it was decided to prioritise joint energy projects, particularly in the oil and gas sector, the exploration of new hydrocarbon reserves, and the joint use of water resources.
It was also decided to set up an interbank. There are also plans to set for an SCO "Energy Club". In the latest summit at Yekaterinburg, China announced plans to provide a US $10 billion loan, to SCO member states, to shore up the struggling economies of its members, amid the global financial crisis.
Central Asia is one of the world's most energy-rich regions. According to a 2008 BP energy survey, Azerbaijan, Iran, Kazakhstan, Turkmenistan, and Russia, that border the Caspian sea, and Uzbekistan hold roughly 21.4 percent of the world's proven oil reserves and 45 percent of the world's proven natural gas reserves.
This covers an area of over 30-million sq. km., almost 3/5 of Eurasia, and a population of 1.4 billion. The SCO's economic impact and potential is even more impressive. Trade between China and its five Central Asian members registered a 212 percent increase since the setting up of the SCO, reaching $37 billion.
Investments between member states surged to $15 billion, covering oil and gas explorations, transportation, telecommunications, chemicals and agriculture. The last summit, held in Yekaterinburg, had approved 127 economic and technological projects, worth $10 billion, for joint ventures.
According to its Secretary General, the SCO has instituted a roadmap for regional economic co-operation, with focus on facilitating trade and investment, deepening economic co-operation and maximising the free flow of goods, capital services and technology. Once these projects have been completed, a network of energy, transportation and telecommunication would have come into existence for the benefit of all member states.
Pakistan has regularly attended its summit meetings since 2005, when it achieved observer status, and has been keen to become a regular member of the organisation. With the increasing concern, among the members of the SCO on account of the situation in Afghanistan, there is a likelihood of Islamabad achieving full member status.
The policies and programmes of the SCO are in consonance with Pakistan's long-term objectives. It is the newest, but the most significant, regional organisation, both in strategic and political terms. While the ECO and SAARC focus on economic co-operation and collaboration, both have little to show, despite both being two decades old.
While attending SCO meeting after Pakistan was given the observer status Shaukat Aziz said Pakistan attaches high value to its relations with the SCO and fully subscribes to its objectives of promoting economic co-operation amongst the member states.
He emphasised the need to forge trade, energy, investment, transportation, banking and tourism links between the member states. The membership of the organisation will also help Pakistan cultivate better relations with Russia. Islamabad, which has depended on the west for trade and military equipment, needs to diversify contacts to be able to act with greater independence. The membership of SCO will present it with an alternative.