Trade opportunities and cooperation: Pakistan with SCO and Eurasian economies

Greater interaction between Pakistan and global organizations particularly within region will contribute to the dialogue of economic, trade, culture and civilization. The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic, security organization which was founded by China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. It is a permanent intergovernmental international organization formally created in 2001 in Shanghai, China; and has established itself as an internationally recognized and authoritative multilateral association.
In the 21st century, the Globalization has increased interdependence of states which enhances the prosperity and progress. Economic integration and cooperation among SCO members on the basis of principles of equality and mutual benefits is very important for trade creation, employment generation, efficient movement of goods and services through greater market expansion.
The organization provides the means to share development, progress and prosperity and help in stabilizing the region. Pakistan's participation in SCO as member will strengthen its economic ties with Eurasian. The SCO members are jointly counteract emergent challenges and threats to boost economic, trade and other available potentials for member's states as well as neighbors.
Pakistan has become the full member of the Shanghai Cooperation Organization (SCO) in the 17th Summit of Heads of States held in Astana, Kazakhstan on June 9, 2017. The permanent membership is a milestone which will strengthen deep-rooted historical and cultural links as well as strong economic and strategic relations with all the members' countries of the SCO.
China has supported Pakistan's entry in SCO and the membership particularly in the backdrop of China Pakistan Economic Corridor (CPEC) which is a flagship of One Belt One Road project will further enhance Pakistan's importance in the entire region aimed at further enhancing the connectivity, regional stability, development, economic prosperity and trade with the member's nations.
SCO is now a group of eight countries ie Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Pakistan and India. Among its member states the Russia and China have significant role because of their global and regional importance as major powers. At present Iran, Afghanistan, Belarus and Mongolia are observer members of SCO will get full memberships in the forthcoming years. Azerbaijan, Armenia, Cambodia, Nepal, Turkey and Sri Lanka are the dialogue partner of SCO.
With the expansion of organization, the region has become vibrant covering 60 percent of total territory of Europe and Asia, will now represent over 40 percent of the world population (3.5 billion) and nearly 25 percent of the global GDP. The membership of SCO gives the opportunity to Pakistan to create new linkages in the world economy and also expand its trade relations with member countries and avail the trade concessional opportunities which are currently under negotiation.
Currently, share of SCO in Pakistan's total trade is 32 percent which indicates that there exist opportunities for trade and economic relations. The SCO region not only has geographical proximity with Pakistan but also provides easy accessibility and makes a very profitable market for Pakistan's exports.
Pakistan has dynamic relations with SCO members. China is a time tested friend, while Central Asian countries have historical ties with Pakistan. Russia is also on the way of developing relations with Pakistan. While mega project a game changer-China - Pakistan Economic Corridor (CPEC) is at implementation stage and also provides market access to Central Asian states.
The development of Gwadar port makes Pakistan an indispensable link for SCO member states. The Central Asian countries have enormous resources of oil, natural gas, liquefied gas, uranium and hydropower that could be channelized to market electricity to the member's nations of SCO such as China, Pakistan, Russia and observer members like Afghanistan and Iran.
In the economic domain, Turkmenistan-Afghanistan-Pakistan-India (TAPI) and CASA-1000 are important projects for both Pakistan and Central Asian States. TAPI's long 1735km pipeline is planned to transmit 27 billion cubic meters of gas annually to Afghanistan, Pakistan and India from Turkmenistan and Tajikistan respectively, with a potential to enhance the capacity to 33 billion cubic meters.
On the other hand, CASA-1000 project also provides a landmark cooperation opportunity between Kyrgyzstan, Tajikistan, Afghanistan and Pakistan. The plan envisage export of a total of 1,300 MW of excess electricity available during summers from Tajikistan and Kyrgyzstan, 1,000 MW for Pakistan and 300 MW for Afghanistan.
Pakistan, China, Kazakhstan and Kyrgyzstan have also agreed to initiate a bus service that would not only enhance trade but also be an important tool to promote people-to-people contacts between the four countries. Similarly, Pakistan can attract the investments in the energy and infrastructure sector in which some of the SCO countries have a comparative advantage.
The strategic location of Pakistan in the region and its economic potential can also help the SCO members to exploit their economic potential. With the prospects of Afghanistan and Iran and possibly Turkey also joining the Organization in the near future, SCO is likely to emerge as a very strong regional Organization and may merge the Economic Cooperation Organization.
A part from trade, there is a huge potential in culture, sports, tourism, education, science and technology.The Shanghai Business Council created in 2006 with its headquarters in Moscow, Russia aims to boost economic cooperation in the framework of the Organization, establishing direct links and dialogue among business and financial circles of the SCO member states, assisting practical promotion of multilateral projects determined by the heads of government in the Programme of trade and economic cooperation.
To explore opportunities of the Shanghai Business Council, the FPCCI may introduce itself in the Council. This forum will give opportunities to Pakistani Businessmen to interact with the businessmen of the members countries for trade and joint ventures investment. It is concluded the regional economic integration may need to transform into cooperative-union in framework of SCO to stabilize the region and to evolve the socioeconomic prosperity.

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TRADE BETWEEN PAKISTAN & SCO COUNTRIES

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                                                                                                                      (MILLION US$)

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Countries                                                 2014                              2015                              2016

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                                            Exports    Imports Total Trade    Exports    Imports Total Trade    Exports    Imports Total Trade

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China                                       2,753.9   13,244.5    15,998.4    2,474.8   16,441.9    18,916.7    1,912.6   17,232.7    19,145.3

Kazakhstan                                     30.7        2.9        33.6       32.9        1.5        34.4       22.9        2.7        25.6

Kyrgyzstan                                      2.2        0.5         2.7        2.6        0.1         2.7        3.3        0.3         3.6

Russia                                        310.9      143.1       454.0      298.5       96.6       395.1      272.0      133.0       405.0

Tajikistan                                      9.1        0.1         9.2        4.0        0.1         4.1        4.4       19.0        23.4

Uzbekistan                                      2.3        0.7         3.0        2.0        1.1         3.1        3.4        3.2         6.6

India                                         529.9    2,169.9     2,699.8      456.3    1,963.5     2,419.8      461.3    1,591.4     2,052.7

Pakistan's Total Trade with SCO Countries   3,639.0   15,561.7    19,200.7    3,271.1   18,504.8    21,775.9    2,679.9   18,982.3    21,662.2

Pakistan's Total Trade with World          24,722.2   47,544.9    72,267.1   22,089.0   43,989.7    66,078.7   20,435.0   47,155.0    67,590.0

Pakistan's % share of trade with SCO Countries   15         33          27         15         42          33         13         40          32

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