By Our Diplomatic Correspondent
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb has reaffirmed Pakistan’s strong commitment to the Shanghai Cooperation Organisation’s (SCO) economic cooperation agenda, a statement from the Finance Division said on Tuesday.
The minister virtually addressed the meeting of SCO Finance Ministers and Central Bank Governors held in Beijing, saying he was unable to attend due to the ongoing annual budget session in Pakistan. In his address, the finance minister reaffirmed Pakistan’s dedication to the vision and principles of the SCO. “He emphasised that the SCO is an essential platform for promoting regional cooperation, enhancing economic ties, and working towards shared prosperity, in line with the “Shanghai Spirit” and the SCO Charter,” the statement said.
The minister highlighted Pakistan’s ongoing efforts to strengthen economic cooperation within the SCO framework, calling for increased collaboration in trade, investment, and financial integration. He proposed initiatives such as joint ventures, technology transfer, and capacity-building programmes that could deliver mutual benefits to all member states.
Aurangzeb reiterated Pakistan’s strong support for the establishment of the SCO Development Bank, describing it as a “pivotal institution to support infrastructure financing, promote development, and deepen regional economic integration.” “Pakistan strongly supports its establishment. The bank will provide a vital source of funding for infrastructure and development projects, enhancing regional connectivity, and economic integration,” he was quoted in the statement as saying.
He envisioned the Bank as forward-looking, incorporating digital finance, fintech innovation, and green financing tools into its operations. Pakistan looks forward to actively contributing to the technical discussions surrounding its establishment, he said.
“We envision the bank as an institution for innovation, integrating digital finance, digital solutions and green financing mechanisms into its core operations, and look forward to engaging on the technical details of the establishment of the SCO development bank.”
He also welcomed the operationalisation of the SCO Network of Financial Think Tanks, recognising it as a timely initiative that will foster evidence-based research, strategic foresight, and policy coordination among member states, that will “serve as an excellent platform for regional analysis and strategic foresight in our financial cooperation”.
He further emphasised Pakistan’s continued reform efforts which have led to notable macroeconomic stability and laid the foundation for sustainable and inclusive economic growth, per the statement.
These reforms, particularly in the areas of fiscal discipline, improvements in key economic indicators, reduction of the current account deficit, exchange rate stabilisation, and increased investor confidence, were highlighted as examples of Pakistan’s progress. “Pakistan has made significant progress over the last year on the macroeconomic stability front. We registered a current account surplus, the primary surplus on the fiscal side, stable currency on the back of growing foreign exchange reserves, and inflation on a multi-year low … We have seen sovereign credit upgrades by international rating agencies.
This is on the back of structural reforms which are well underway on the taxation side, on the energy side, SOEs, and in the public finance space,” he said.
Recognising the growing importance of the digital economy, he outlined Pakistan’s digital financial initiatives aimed at promoting inclusion and expanding access to capital. He pointed to programmes like Roshan Digital Accounts and digital banking platforms, which have shown notable success in widening access to financial services.
The finance minister stressed that the global economy is currently facing multiple challenges, including sluggish growth, rising inequality, and climate change. He underscored the need for collective action among SCO member states to address these issues and to ensure that the benefits of sustainable development are equitably shared among all countries in the region.
He noted that SCO member states can learn from one another’s experiences and successful policy models, especially those tailored to the unique needs of the developing world.
“Pakistan remains fully supportive of regional initiatives that aim to deliver long-term, sustainable development outcomes,” he said.
In conclusion, Aurangzeb reiterated Pakistan’s unwavering commitment to deepening economic cooperation under the SCO framework.
He expressed confidence that continued collaboration and mutual support among SCO member states would “help unlock regional economic potential, promote resilience, and ensure a more inclusive and sustainable future for the entire region.”
China’s Minister of Finance and the Governor of the People’s Bank of China acknowledged Pakistan’s economic progress and commended the Government of Pakistan for successfully stabilising the economy and advancing its reform agenda.
The SCO was established in 2001 and has nine member states, including China, Russia, Belarus, Kyrgyzstan, Kazakhstan, and Uzbekistan as its founding members while Pakistan, India and Iran joined the organisation in 2017.
