Question 1: Explain BRI and its flagship project

CPEC, its potential to alter the economic landscape

of Pakistan, key projects under CPEC, and
challenges faced by the corridor.

BRI and OBOR: An Overview

Background
The Belt and Road Initiative (BRI), formerly known as One Belt, One Road
(OBOR), is a global development strategy adopted by the Chinese
government. It was announced by President Xi Jinping in 2013. This
initiative aims to enhance regional connectivity and embrace a bright
economic future.
The Two Components
1. The Silk Road Economic Belt: This component focuses on
connecting China to Europe through Central Asia. It revives the
ancient Silk Road trade route, aiming to link China with the Middle
East, Europe, and Central Asia through a network of railways,
highways, oil and natural gas pipelines, and other infrastructure
projects.
2. The 21st Century Maritime Silk Road: This maritime counterpart
seeks to link China's southern coast to the Mediterranean, Africa,
South-East Asia, and Central Asia. It focuses on creating a network of
ports, railways, roads, and pipelines to improve maritime trade and
logistics.
The BRI Project in Detail
Objectives and Goals
 Economic Development: Primarily, BRI aims to boost economic
integration and growth across Asia, Europe, and Africa.
 Infrastructure Investment: It focuses on large-scale infrastructure
investment, including roads, bridges, railways, ports, and energy
projects like power stations and pipelines.
 Cultural Exchange: BRI also emphasizes cultural exchange and
regional cooperation, aiming to strengthen diplomatic ties and mutual
understanding.
Key Features
 Geographical Scope: The initiative covers over 60 countries,
potentially impacting 60% of the world's population and 35% of the
global economy.
 Investment Scale: BRI is one of the most ambitious infrastructure
projects ever conceived, with hundreds of billions of dollars in
funding.
 Sector Diversity: It spans a wide range of sectors beyond
transportation, including energy, telecommunications, tourism, and
even healthcare.
Implementation
 Partnerships: Countries along the BRI routes have engaged in
partnerships with China for funding and expertise in infrastructure
development.
 Multilateral Cooperation: The initiative involves international
organizations and aligns with other regional development strategies.
Challenges and Criticisms
 Debt Sustainability: Concerns have been raised about the debt
burden on participating countries, potentially leading to debt traps.
 Geopolitical Implications: The strategic nature of the initiative has
raised geopolitical tensions, particularly with nations concerned about
China's growing influence.
 Environmental Impact: The environmental impact of large-scale
infrastructure projects is also a significant concern.
Global Impact
 Economic Opportunities: BRI has created substantial trade and
investment opportunities.
 Regional Connectivity: Enhanced connectivity has the potential to
transform global trade patterns.
 Cultural and Academic Exchange: There's an emphasis on
fostering cultural ties and academic collaboration among member
states.

China-Pakistan Economic Corridor (CPEC)

Introduction
The China-Pakistan Economic Corridor (CPEC) is a flagship project within
China's Belt and Road Initiative (BRI). It's a collection of infrastructure
projects currently under construction throughout Pakistan. Originally
valued at $46 billion, the value of CPEC projects is worth $62 billion as of
2020.
Objective
CPEC aims to rapidly upgrade Pakistan's required infrastructure and
strengthen its economy by the construction of modern transportation
networks, numerous energy projects, and special economic zones.
Key Components
1. Transport Network: This includes the development of roads,
railways, and pipelines to connect Gwadar Port in Pakistan to Xinjiang
in China.
2. Energy Projects: To alleviate Pakistan's chronic energy shortages,
CPEC includes the construction of various power plants and energy
projects.
3. Gwadar Port Development: Expansion and upgrading of Gwadar
port are central to CPEC, enhancing its capacity as a major shipping
hub.
Phases
 Phase I (2015-2020): Focused on energy projects and transport
infrastructure.
 Phase II (Beyond 2020): Emphasizes industrial cooperation,
agricultural development, and socio-economic projects.
Energy Sector
 Over half of the investment is allocated for energy generation and
transmission.
 Includes coal, solar, and wind energy projects to increase Pakistan's
energy production capacity.
Transportation and Infrastructure
 Encompasses highways and railways for better connectivity.
 The Karachi-Lahore Motorway and the upgrading of the Karakoram
Highway are notable projects.
Gwadar Port
 Development includes a deep-sea port, an international airport, and
the establishment of a Free Zone to boost trade.
 Envisioned to become a regional economic hub.
Economic Zones
 Special Economic Zones (SEZs) are being established to promote
industrial growth.
 Aims to attract foreign and local investment.
Impact on Pakistan
 CPEC is expected to boost Pakistan’s economy, reduce unemployment,
and improve the standard of living.
 Potential to transform Pakistan into a central trade and economic hub.
Challenges and Controversies
 Security Concerns: Protection of thousands of Chinese workers in
Pakistan.
 Debt Concerns: Worries about Pakistan's ability to repay Chinese
loans.
 Political and Regional Issues: Concerns from neighboring countries
about China’s growing influence in the region.
Geopolitical Implications
 Seen as a game-changer in regional dynamics, particularly in relation
to India and the United States.
 Strengthens China's influence in South Asia.
Future Prospects
 Long-term benefits hinge on sustained political commitment and
effective management of economic and security challenges.
 Could be a model for Chinese-led regional development if successful.

Key Projects under CPEC:

Transportation Infrastructure
1. Karachi-Lahore Motorway (KLM)
  Connects Karachi and Lahore, significantly reducing travel time
and boosting trade.
2. Upgradation of Karakoram Highway
 Improves the primary road between China and Pakistan,
enhancing trade routes and access.
3. ML1 Railway Track Upgradation
 Revamps the main railway line from Karachi to Peshawar,
increasing speed and capacity.
4. Peshawar-Karachi High-Speed Railway
 Aims to facilitate faster rail travel between major cities.
5. Gwadar Port Development
 Enhances the deep-sea port's capacity, making it a major
shipping hub.
Energy Sector
1. Coal, Wind, Solar, and Hydroelectric Power Plants
 Various power projects to alleviate Pakistan’s energy shortage.
 Notable ones include the Sahiwal Coal Power Project, Quaid-e-
Azam Solar Park, and the Karot Hydropower Station.
2. Thar Coalfield Projects
 Exploits one of the world’s largest coalfields in Thar Desert for
energy production.
Special Economic Zones (SEZs)
1. Rashakai Economic Zone
 Focused on manufacturing and processing industries.
2. Dhabeji Special Economic Zone
 Strategically located near Karachi, with a focus on trade and
logistics.
3. Hattar Special Economic Zone
 Aims to attract investment in various sectors, including
pharmaceuticals and textiles.
4. Allama Iqbal Industrial City
  A large-scale industrial zone in Punjab, catering to diverse
industries.
Digital Infrastructure
1. Cross-Border Optical Fiber Cable
 Enhances telecommunications and internet connectivity
between China and Pakistan.
2. IT Parks and Digital Services
 Development of IT parks to boost the digital economy.
Social and Community Development
1. Educational and Health Infrastructure
 Establishment of schools, universities, and hospitals under
CPEC's social sector projects.
2. Community Development Initiatives
 Includes water supply, sanitation, and poverty alleviation
programs.
Agricultural Cooperation
1. Modernization of Agriculture
 Projects aimed at increasing agricultural productivity through
technology and infrastructure development.
Other Significant Projects
1. Gwadar International Airport
 A new international airport to boost connectivity and trade
through Gwadar.
2. East Bay Expressway
 Enhancing road connectivity in Gwadar.
3. Gwadar Smart City Project
 Aimed at developing Gwadar into a modern, sustainable city.

China-Pakistan Economic Corridor (CPEC) Phase II:

Detailed Analysis
Overview
Phase II of the China-Pakistan Economic Corridor (CPEC) represents an
evolution from the primarily infrastructure-focused Phase I to a more
comprehensive development agenda. This phase extends beyond road and
energy projects, delving into industrial cooperation, agricultural
development, socio-economic projects, and IT infrastructure, marking a
shift towards sustainable, long-term growth.
Key Components of Phase II
1. Industrial Cooperation
 Special Economic Zones (SEZs): A major thrust of Phase II is
the establishment and operationalization of SEZs. These zones
aim to boost industrial growth, attract foreign investment, and
create jobs.
 Examples: Rashakai Economic Zone in Khyber
Pakhtunkhwa, Dhabeji Special Economic Zone in Sindh,
and Allama Iqbal Industrial City in Punjab.
 Industrial Clusters: Development of industrial clusters in
sectors such as textiles, garments, steel, and pharmaceuticals
are planned. These clusters are designed to benefit from
regional connectivity and supply chain integration.
2. Agricultural Development
 Modernization: A key focus is on modernizing Pakistan’s
agricultural sector through technology transfer, improved
irrigation, and seed development.
 Food Security: Projects aimed at ensuring food security and
increasing agricultural exports.
 Research and Development: Collaboration in agricultural
research and development is a critical component, with the aim
of increasing yield and efficiency.
3. Socio-Economic Development
 Education and Health: Investments in education and
healthcare infrastructure, including vocational training centers
and hospitals.
 Community Development: Grassroots projects aimed at
community development, such as water supply schemes, skill
development, and poverty alleviation programs.
 4. Digital Infrastructure
 Fiber Optic Projects: Expansion of digital connectivity through
fiber optic cables and IT parks to promote e-commerce and IT
services.
 E-Government Initiatives: Development of e-government
infrastructure to improve governance and public services.

ML1 Project explained.

The Main Line 1 (ML1) railway project, a cornerstone of the China-Pakistan
Economic Corridor (CPEC), is poised to revolutionize Pakistan’s railway
infrastructure. This project focuses on the comprehensive overhaul of the
railway line that stretches from Karachi to Peshawar, covering some of the
most critical economic and logistic corridors in Pakistan.
Project Specifications
 Length and Route: The ML1 covers around 1,872 kilometers, linking
major cities like Karachi, Hyderabad, Multan, Lahore, and Rawalpindi,
culminating in Peshawar.
 Dualization and Upgrading: It involves dualization (creating double
tracks) and upgrading the existing single-track line, which is crucial
for handling increased freight and passenger traffic efficiently.
Objectives and Goals
 Increased Speed: Post-upgradation, trains on the ML1 are expected
to operate at speeds of up to 160 km/h, a significant jump from the
current maximum of 80-105 km/h.
 Reduced Travel Time: The project aims to halve the travel time
between Karachi and Peshawar, currently around 21 hours.
 Safety and Efficiency: Upgrading the signaling and communication
systems is a vital component, enhancing safety and operational
efficiency.
Investment and Funding
 The estimated cost stands at around $6.8 billion, making it one of the
most expensive projects under CPEC.
  The funding model includes a mix of Chinese concessional loans,
grants, and investments, along with a contribution from the Pakistani
government.
Implementation Phases
1. Phase I: Focuses on the critical segments, like the Karachi-Lahore
section.
2. Phase II and III: Include further upgradation and dualization of the
remaining sections.
Economic and Strategic Implications
 Economic Boost: The project is expected to spur economic growth
by enhancing trade and logistics capabilities, reducing transportation
costs, and improving supply chain efficiencies.
 Employment Opportunities: It's projected to create thousands of
jobs, both during the construction phase and in the long-term
operation of the railway.
 Regional Connectivity: Enhancing Pakistan's connectivity with
China and potentially Central Asian states, ML1 plays a strategic role
in the broader BRI framework.
Challenges and Concerns
 Financial Viability: Concerns about the project's debt implications
for Pakistan and its long-term financial sustainability.
 Implementation Delays: Issues like land acquisition, bureaucratic
hurdles, and coordination between various agencies could lead to
implementation delays.
Recent Developments and Examples
 Karachi-Peshawar Section: As a crucial part of the project, this
section's upgrade is seen as a benchmark for the overall success of
ML1.
 Modernization Efforts: The introduction of new locomotives and
upgraded passenger coaches in certain sections serves as an initial
step towards the modernization envisaged by ML1.
Question2: Understanding the underlying issues
with Pakistan’s Economy, Present Status, Steps
takes to improve economic landscape, and future
challenges and concerns.

SIFC: Introduction, Goals, Achievements, Concerns, and

challenges.
Introduction to SIFC
The Special Investment Facilitation Council (SIFC) is a civil-military forum
recently established in Pakistan aimed to bring over $60 billion in
investment to the country in the next five years. This ambitious projection
sets the bar high, especially considering Pakistan's foreign direct
investment (FDI) history.
Investment Goals
 Ambitious Targets: The SIFC is projected to bring over $60 billion in
investment to Pakistan in the next five years, averaging $12 billion
annually.
 Historical Context: This goal is ambitious considering the highest
FDI Pakistan ever received in a year was $5.41 billion in 2008, while
the last year's FDI stood at less than $1.5 billion.
SIFC's Strategy and Operations
 One-Window Operation: Designed to streamline investment
processes and address foreign investors' concerns efficiently.
 Addressing Bureaucratic Challenges: Efforts to reduce
bureaucratic red tape and rationalize the investment process, with the
promise of granting permissions within 15 days.
 Dispute Resolution Mechanism: A new system has been agreed
upon to address and resolve disputes involving foreign investors.
Economic Context and Challenges
 Reliance on Saudi and Emirati Investments: Optimism largely
hinges on materializing the promised investments of $25 billion each
from Saudi Arabia and the UAE.
  Wealth Fund: A wealth fund has been established with state-owned
assets worth $6.1 billion, intended for sale to Gulf investors.
Reception and Perspectives
 Business Community's View: The Pakistan Business Council views
the SIFC as a positive step towards reducing bureaucratic hurdles and
fostering a better investment climate. However, there are concerns
about the persistence of systemic issues like narrow tax base, loss-
making SOEs, circular debt, and high government expenditure.
Expansion of SIFC's Mandate
 Following discussions with businesspersons in Lahore and Karachi,
the army chief influenced the decision to broaden the scope of SIFC.
The organization has evolved into a national platform for discussing
and resolving a wide array of economic and business issues.
Criticism and Skepticism about SIFC
 Views of Economists and Experts Renowned economist Atif Mian
and others have expressed skepticism about the sustainability of
initiatives like SIFC, citing historical precedents of similar projects
failing.
 Concerns Raised by Policy Research Institute A report by the
Policy Research Institute of Market Economy (PRME) suggests that
SIFC may not meet its goals due to a lack of focus on structural
economic issues. It also warns against the potential destabilization
resulting from military involvement in economic decision-making.
Government's Approach and Institutional Neglect
 Neglect of Institutional Reforms The government's focus on
attracting foreign investment through SIFC, while overlooking crucial
institutional reforms and regulatory concerns, is highlighted as a
significant issue. This approach has led to a lack of trust in the
political government and exclusion of the local business community.
 Misalignment with National Needs The report asserts that SIFC's
mandate and objectives are not in sync with Pakistan's actual needs,
drawing parallels between SIFC and the Board of Investment (BOI).
Fundamental Questions and Future Concerns
 Reliance on Foreign Investment The report questions the efficacy
of relying solely on foreign investment to address Pakistan's economic
challenges, especially in an unfavorable policy environment.
  Shrinking Role of Civilians in Economic Policymaking There is
growing concern about the diminishing role of civilians in economic
decision-making. The report points out the expanding influence of the
military, particularly its chief on the SIFC apex committee, in areas
outside its expertise. The approach of the next government to this
anomaly is yet to be determined.

IMF Deal: A Boon and a Burden

Overview of the IMF Deal
 Context and Significance: The IMF deal with Pakistan involves
unlocking a crucial $700 million tranche, contributing to a total of
$1.9 billion released within a larger $3 billion bailout framework. This
financial support is viewed as critical to stabilizing Pakistan's
economy, which has been grappling with various fiscal challenges. The
deal aims to provide immediate relief while setting the groundwork
for long-term economic reforms.

Response of Government and Market

 Government's Optimistic Outlook: The caretaker government has
shown a sense of achievement and optimism, viewing the deal as a
validation of its efforts to stabilize the economy. This sentiment
reflects the government's belief that the agreement will pave the way
for improved financial conditions and investor confidence in Pakistan.
 Market Dynamics and Business Sentiment: The Pakistani market
has generally welcomed the IMF deal, despite some reservations.
Businesses see it as a necessary step toward financial stability, albeit
with cautious optimism. A positive market response is crucial in
maintaining investor confidence and steering the economy towards
recovery.

Impact on Pakistan's Economic Landscape

 Inflation and joblessness concerns: The conditions attached to the
IMF deal, such as increased taxes and elevated energy rates, have led
to concerns about inflation and joblessness among the general
population. These measures, while aimed at stabilizing the economy,
have immediate negative impacts on household budgets and the cost
of living, disproportionately affecting lower and middle-income
groups.
  Government's Balancing Act: In response to these challenges, the
government has emphasized the need for economic and price stability,
particularly for the poor. The strategy involves a delicate balance
between meeting IMF conditions and mitigating their impact on the
public. The government's ability to navigate these challenges will be
crucial in determining the deal's overall success.

SIFC's Role in Pakistan's Economy

 Corporate Sector’s Insights: Pakistan Business Council’s
perspective highlights a concern in the corporate sector about the
increasing cost of doing business under the IMF regime. Criticisms
focus on the disproportionate burden on the formal sector and how
IMF measures might incentivize evasion in the informal sector.
There's an acknowledgment that while the IMF has become more
receptive to taxing untaxed sectors, similar flexibility is needed in
energy tariffs.
 Debate Over SIFC’s Efficacy: While the Special Investment
Facilitation Council (SIFC) is defended as a practical solution to
government fragmentation, there are concerns about its effectiveness
in the face of looming debt challenges and IMF-driven policy changes.
The SIFC's role in navigating these complex dynamics and its ability
to facilitate sustainable economic growth remain subjects of debate.

Criticism of the Deal and positive takeaways

 Voices from Industry Leaders: Concerns raised by industry
underscore the broader economic implications of the IMF deal. The
fear of increased operational costs leading to the closure of industries,
particularly in the textile sector, poses a significant threat to
Pakistan's competitiveness in global markets. The call for fair taxation
implementation by the FBR and the need for clearer economic
communication are pivotal.
 Election's Role in Economic Stability: The emphasis on the
necessity of free and fair elections, as pointed out by industry leaders,
is seen as a vital step toward removing economic uncertainty.
Transparent governance and democratic processes are essential in
building investor confidence and ensuring policy consistency, which
are crucial for economic stability in the wake of the IMF deal. The
IMF's scrutiny of the SIFC also raises questions about the role of
governance in economic reform and the importance of establishing
systems that prioritize sustainable development and social welfare.
 Addressing the symptoms rather than root causes

Analysis of Pakistan's Export Dynamics and Geopolitical

Challenges
Overview of Pakistan's Export Destinations
 Changes Over a Decade: Over a period of ten years, Pakistan's top
export destinations have shifted. In FY10, the USA, UAE, Afghanistan,
China, and the UK were the primary destinations. By FY20, this list
changed, with the USA still at the top, followed by China, the UK,
UAE, and Germany. Afghanistan dropped off the list, as revealed by
the State Bank of Pakistan.
 Increased Exports to Major Economies: Between FY20 and FY23,
Pakistan's export earnings from the US and China grew faster than
from the UK, UAE, and Germany. This growth is credited to Pakistani
exporters' ability to increase market share in the American and
Chinese markets.
 Influence of Geopolitical Strategy: Pakistan's balanced approach in
global and regional politics has been instrumental in maintaining and
growing its export relationships, especially with the US and China.

Geopolitical Challenges and Economic Dependencies

 Impact of Global Conflicts: Recent conflicts, such as the Russian
war in Ukraine and the Israel-Palestine war, have created complex
challenges for Pakistan. These conflicts necessitate a finely tuned and
balanced geopolitical approach to sustain trade relations with
Western countries.
 Reliance on Foreign Funding: Pakistan's fragile external economy
has led to increased dependence on foreign funding from countries
like China, Saudi Arabia, and the UAE. To qualify for such funding,
Pakistan needs to stay in good standing with the IMF, where US
influence is significant.
 IMF's Increased Resources and US Influence: The recent approval
by the IMF executive board of a US-backed proposal for a 50%
increase in quota resources will enhance the lending capacity of the
IMF and continue US influence in its policymaking.
 Pakistan's Need for a Strategic Shift: Given these developments,
Pakistan must focus on attracting more investment and increasing
 export earnings, while maintaining good relations with the US and
Western markets and being a disciplined borrower of the IMF.

Export Market Diversification and Challenges

 Importance of Market Diversification: Nearly half of Pakistan's
goods export earnings come from five destinations, underscoring the
need for diversification to ensure sustainability. Avoiding over-
concentration in a few markets is crucial.
 Expanding to Next Major Markets: Pakistan's next five main export
markets are Spain, Italy, Bangladesh, Belgium, and Afghanistan.
Increasing exports to these countries, especially to Western nations
like Spain, Italy, and Belgium, presents similar challenges as
exporting to the broader West.
 Export Potential in Afghanistan and Bangladesh: Boosting
exports to Afghanistan is desirable but currently challenging due to
volatile relations and the situation in Kabul. In contrast, exporting to
Bangladesh and other Asian countries faces the issue of
competitiveness.
 Competing with China and India: Intra-Asian trade is growing, but
competition with China and India in traditional exports is tough due to
production costs and technological gaps.
 Focus on Niche Products: Capitalizing on niche products is a
potential avenue, but Pakistan currently lacks in this area.
 Expanding to Western Asia and Southeast Asia: Exporting more
traditional items to these regions is an option, but it's important to
avoid excessive focus on low-end food items to prevent domestic food
inflation.
 Normalizing Trade with India and Exploring Other Markets:
Normalizing trade ties with India and exploring opportunities in Iran
and Central Asian nations are also crucial for Pakistan's export
growth.

Debt's Grip on Pakistan: Navigating Towards Economic

Stability
Introduction: Contextualizing Pakistan's Economic
Challenges
 Budgetary Shortcomings: The current state of Pakistan's budget
reflects a narrow approach, focusing primarily on immediate
accounting practices without incorporating robust, future-oriented
fiscal strategies. This lack of forward-looking planning is a significant
impediment to the country's economic health.
Debt and Debt Servicing Issues
 Heavy Reliance on Indirect Taxes: The government's historical
approach has been to elevate indirect taxes, which disproportionately
affect consumers and contribute to inflation.
 Inflation and Ineffective Monetary Policies: Despite attempts to
control inflation, averaging around 25% over the last two years,
through contractionary monetary policies, these measures have not
yielded satisfactory results due to predominant cost-push inflation
factors.
 Escalating External Debt: As of June 2023, Pakistan's external debt
has reached a staggering $124.3 billion, with a significant portion of
the budget allocated to servicing this debt, amounting to 105% of the
total tax revenue.
Strategies to Deal with Debt Repayments
 Exploring Debt Rescheduling: To manage the external debt,
Pakistan is considering debt rescheduling, especially with key
bilateral lenders such as China and Saudi Arabia.
 Banking Sector's Risk Exposure: The banking sector's
overwhelming reliance on government lending poses a risk,
suggesting a need for diversification and the exploration of alternative
financing strategies.
 Reforms in Fiscal Management: Effective counterstrategies include
expanding the tax base, integrating the informal sector into the formal
economy, and enhancing public sector efficiency through privatization
or public-private partnerships.
Economic Reform and Political Landscape
 Political Parties and Economic Management: The capability of
mainstream political parties to effectively manage these challenges is
crucial. Parties must adopt clear economic frameworks to address
these issues, moving away from populist agendas.
 Need for Comprehensive Economic Change: Reforms should
encompass civil bureaucracy revitalization, defense expenditure
 reduction, and land reforms. A holistic approach, including a
consensus-based Charter of Economy, is vital for sustainable
development.
Conclusion: Charting a Path Forward
 Towards Sustainable Economic Growth: Overcoming the
challenges of high debt and poor fiscal management requires a multi-
pronged strategy. Pakistan must adopt inclusive, just, and sustainable
fiscal and administrative strategies, emphasizing broad-based
economic reforms and efficient governance. The path to prosperity
will depend on Pakistan's ability to implement these changes and
effectively navigate its socio-economic landscape.
Question 3: Regional Cooperation Organizations
and the Role of Pakistan

Shanghai Cooperation Organization (SCO) and the Role

of Pakistan
Introduction
The Shanghai Cooperation Organization (SCO) is a pivotal Eurasian
political, economic, and security alliance, representing one of the world's
most expansive multinational collaborations. Established in 2001, SCO
has evolved into a comprehensive platform for regional cooperation.
Pakistan's full membership since 2017 marks a significant milestone in
its foreign policy, emphasizing its commitment to regional stability and
cooperation.
Historical Context and SCO's Evolution
 Origins of SCO: Originating from the "Shanghai Five" in 1996, the
SCO transformed into its current form in 2001 with Uzbekistan's
inclusion. Initially focused on border security, its scope expanded to
cover broader issues including terrorism, economic cooperation, and
cultural exchange.
 Expansion and Member States: SCO's expansion to include major
South Asian nations like Pakistan and India reflects its evolving role in
regional geopolitics. Current member states include China,
Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India, and
Pakistan.
Pakistan's Entry and Contributions
 Pakistan’s Membership: Pakistan's journey with the SCO began as
an observer in 2005, culminating in full membership in 2017. This
move aligns with Pakistan's goals for regional connectivity and
stability.
 Participation in RATS: Pakistan is actively involved in SCO's
Regional Anti-Terrorist Structure (RATS), sharing intelligence, and
partaking in joint counter-terrorism efforts.
 Experience in Combating Terrorism: Pakistan's domestic
experience in counter-terrorism is a valuable asset to SCO's collective
security initiatives.
 CPEC and Regional Connectivity: The China-Pakistan Economic
Corridor (CPEC) significantly aligns with SCO's regional trade and
infrastructure development goals.
 Advocacy for Economic Cooperation: Pakistan has been a
proponent of greater economic integration within the SCO, pushing
for reduced trade barriers and enhanced connectivity.
Diplomatic and Conflict Resolution Roles
 Mediator in Regional Conflicts: Leveraging its strategic position,
Pakistan can mediate in regional conflicts like Afghanistan, utilizing
the SCO platform for dialogue facilitation.
 Emphasis on Environmental Cooperation: Pakistan champions
collaborative approaches within the SCO for environmental protection
and water resource management. Balancing Geopolitical Interests:
Pakistan's role in the SCO involves balancing its relations with key
members like India and China, and fostering new ties with Central
Asian states and Russia.
Energy Cooperation
 Potential as an Energy Transit Hub: Pakistan's geographic position
offers opportunities to become a key energy corridor for SCO
countries, especially in Central Asian energy projects.
 Renewable Energy Initiatives: Actively involved in promoting
renewable energy within SCO, Pakistan explores collaborative
projects and shares expertise in this sector.
Inter-Member Relations within SCO
 Managing India-China Dynamics: Pakistan navigates its
relationships with India and China within the SCO, maintaining
diplomatic engagement despite bilateral tensions.
 Engagement with Russia and Central Asia: Pakistan's SCO
membership opens avenues for deeper political and economic
engagement with Russia and Central Asian countries.
Challenges and Opportunities
 Geopolitical Complexity: Pakistan faces the challenge of managing
its bilateral relations within the multi-faceted dynamics of the SCO.
 Economic Growth and Diversification: Effective utilization of the
SCO platform for economic growth and diversification remains a key
goal for Pakistan.
 Security and Stability Objectives: Continued participation in SCO's
security initiatives is vital for Pakistan to address regional threats and
maintain stability.
Conclusion
Pakistan’s engagement in the SCO is multi-dimensional, encompassing
aspects of security, economic cooperation, and cultural diplomacy. The
SCO serves as an essential platform for Pakistan to amplify its regional
influence, contribute to stability, and pursue economic growth
opportunities. While navigating complex inter-member relationships and
regional challenges, Pakistan's strategic involvement in the SCO is
crucial for shaping a cooperative and stable regional future.

Developments and Initiatives within SCO Involving

Pakistan (2020-2023)
1. SCO Summit Developments and Pakistan's Role
 2020 SCO Summit: At the SCO summit held virtually in November
2020, Pakistan, under Prime Minister Imran Khan’s leadership,
emphasized combating COVID-19 and boosting economic cooperation.
Pakistan highlighted the significance of the China-Pakistan Economic
Corridor (CPEC) as a regional connectivity project aligned with SCO’s
objectives.
 2021 Dushanbe Summit: During the 2021 SCO summit in
Dushanbe, Tajikistan, Pakistan focused on the evolving situation in
Afghanistan. Pakistan’s Prime Minister stressed the need for a
coordinated approach to ensure peace and stability in Afghanistan,
recognizing its critical impact on regional security and economic
integration.
2. Economic and Trade Cooperation
 SCO Trade and Investment Forums: Pakistan has been an active
participant in various SCO trade forums, seeking to enhance
economic and trade relations with member states. In 2020 and 2021,
Pakistan engaged in dialogues focusing on expanding trade,
improving transport links, and capitalizing on the economic potential
of the SCO region.
 SCO Business Council and Chamber of Commerce Meetings:
Pakistan has been part of the SCO Business Council, where it engaged
with member states to explore business opportunities and investment
 potentials. The focus has been on sectors like agriculture, IT, and
energy.

Role of Shanghai Cooperation Organisation in new world

order
Introduction
The Shanghai Cooperation Organization (SCO) has emerged as a
significant multilateral entity influencing the geopolitical landscape of
the modern world. Established in the aftermath of the Cold War, its
increasing influence and membership expansion signal a shift towards a
more multipolar world order. This comprehensive analysis delves into the
role of SCO in shaping this new world order, examining its growing
influence, its comparison with other organizations, its impact on global
dynamics, and specifically its relevance to Pakistan.

SCO's Increasing Role and Comparison with Other

Organizations
 Historical Context and Expansion
Initially formed as the Shanghai Five in 1996, the SCO evolved
from a regional security pact into a substantial international
organization, comprising major global players like China, Russia,
India, and Pakistan. Its expansion stands in contrast to NATO's
post-Cold War enlargement, often perceived by Russia as a direct
threat.
 Strategic Importance for Member Countries
For member states, the SCO serves as a strategic platform for
balancing global influences, particularly those from the West. It
offers Russia a gateway to global engagement amidst Western
sanctions, while Central Asian countries view it as a bulwark
against external political influences. For India and Pakistan, it
provides a counterbalance to US dominance, and for nations like
Iran and Afghanistan, it's a channel for reducing international
isolation.

SCO and the New World Order

 Multipolarity Advocacy
The SCO is increasingly seen as a pivot to a multipolar world order,
championed by Russia and China. This shift reflects a growing
 discontent with US hegemony and the unipolar structure that
dominated post-Cold War international relations.
 Economic and Security Collaboration
The organization fosters significant economic and energy
cooperation among its members, strengthening their collective
bargaining power on the global stage. It also plays a critical role in
regional security, offering a cooperative framework that contrasts
with the perceived unilateralism of Western alliances.

Challenges Facing SCO

 Internal Disparities and Policy Divergence
Despite its potential, the SCO faces challenges, primarily due to
differing priorities among its members. China emphasizes
economic cooperation, whereas Russia focuses on security and
military aspects. Additionally, internal disputes, like India-Pakistan
tensions and Central Asian border conflicts, hinder the
organization's unified approach to regional issues.
 External Rivalries and Expansion Effects
The inclusion of countries like Saudi Arabia introduces new
dynamics, potentially bringing external rivalries into the
organization. While expansion enhances the SCO's global clout, it
also complicates achieving consensus among diverse members with
varying national agendas.

Pakistan and the SCO in the New World Order

 Strategic Significance for Pakistan
For Pakistan, SCO membership is pivotal for multiple reasons. It
offers an alternative platform to Western-dominated global forums,
providing Pakistan with enhanced diplomatic and economic
engagement opportunities.
 Balancing Regional and Global Interests
Pakistan's participation in the SCO allows it to balance its relations
with major powers like China and Russia, while also managing its
complex relationship with India. This is crucial for Pakistan in
navigating the new multipolar world order, where regional
dynamics and global power shifts are increasingly intertwined.
 Economic and Security Prospects
Being part of the SCO opens doors for Pakistan in terms of regional
connectivity, trade, and energy cooperation. It also offers a forum
for addressing security concerns, particularly in the context of its
regional security challenges and its role in the broader Asian
landscape.
Conclusion
The Shanghai Cooperation Organisation, with its expanding influence
and diverse membership, is playing a pivotal role in shaping the new
multipolar world order. While it faces challenges due to internal
disparities and policy divergences, its significance in global politics,
particularly for countries like Pakistan, cannot be overstated. As nations
seek alternatives to Western-centric models, the SCO stands as a
testament to the evolving dynamics of international relations in the 21st
century.

What Iran’s Membership of Shanghai Cooperation

Organisation Means
Context
 Iran's SCO Membership: Iran's bid to join the Shanghai Cooperation
Organisation (SCO) was approved by the bloc's seven permanent
members, marking a diplomatic success for the country.

Diplomatic and Economic Implications

 Political Significance: President Raisi of Iran viewed the approval as
a significant diplomatic achievement, linking Iran to Asia's economic
infrastructures and resources.
 Bilateral Agreements: Iran engaged in high-level meetings, leading
to significant agreements, notably with Tajikistan, aiming to boost
bilateral trade.

Iran’s Perception and Misunderstandings

 Iran's View of SCO as a coalition of non-Western powers: Iran
perceives the SCO as a coalition of non-Western powers, potentially
challenging US hegemony. This view, however, may not align with the
realities of other member states' relationships with the US.
 SCO balancing the Member Dynamics: SCO members are cautious
about engaging in Iran’s regional rivalries, evident in the inclusion of
Saudi Arabia, Qatar, and Egypt as dialogue partners for balance.

Potential for Iran in SCO

 Iran in a regional block
This marks the first time Iran becomes a full member of a major
regional bloc since its 1979 revolution.
 Iran’s inclusion means that SCO members don’t recognize
sanctions on it as international sanctions.
Iran is subject to unilateral sanctions. This means that SCO members
don’t recognize those as international sanctions and that’s why
they’ve accepted Iran’s request for full membership.
 Iran’s economic Aspirations regarding China, Russia, and
CARs: Iran is eyeing political and economic gains, especially with
China, with which Iran signed a 25-year comprehensive cooperation
agreement in March, and Russia, with which Iran is looking to expand
a pre-existing cooperation agreement. Moreover, Iran could gain
significant access to the Central Asian region, which can be regarded
as a market for exports of Iranian goods.

Limitations
 Limited Economic Benefits in the face of Western Sanctions: US
sanctions could prove to be roadblocks on the way to achieving those
potentials should they persist but will not halt Iran’s economic progress.
Iran and world powers have conducted six rounds of talks in Vienna to
restore the country’s 2015 nuclear deal, which, if successful, would
see US sanctions lifted. The talks have been on hold since late July to
allow Raisi to form his administration but are expected to resume
soon. If the nuclear deal is revived, it would only be one wing. The
other is the increasing development of ties with the East, which would
happen regardless of whether talks with the West are successful.
 Marginal direct benefits: The direct economic benefits from the
SCO are marginal” but member states could pursue bilateral
agreements.
 Limitations of SCO itself: The SCO is mainly a geopolitical and
security organization with limited infrastructures to pursue economic
integration. There is no Russia-China-Iran axis with formalized
commitments akin to an alliance, and the SCO certainly will not
provide the institutional structure for such an alliance.

Can the SCO be Turkey’s Alternative to the West?

Turkey Expresses Interest in Joining the SCO
 Erdogan Announces Intentions to Seek SCO Membership:
Turkish President Erdogan reveals Turkey's plan to become a full
member of the Shanghai Cooperation Organisation, highlighting a
shift in Ankara's focus amid strained ties with the West.
 Turkey's Current Status and SCO's Composition: The article
details Turkey's position as a dialogue partner within the SCO, which
includes a diverse group of countries across Asia, contrasting its
cooperative nature with NATO's defense commitments.

The Interplay of Turkey's Foreign Relations and SCO

Aspirations
 SCO is closer to the model of the European Union than to
NATO: It aims to increase dialogue and cooperation, solve problems
among its members when needed and stand in solidarity with one
another against interventions in the region by outside powers.
 Escalating tensions in the Mediterranean Sea between NATO
members Turkey and Greece
 Growing Turkey-Russia Ties Influence Erdogan's SCO
Consideration: Erdogan's interest in the SCO is influenced by
Turkey's strengthening relations with Russia, including significant
defense and energy deals, despite differences in the Syrian conflict.
 Balancing Act Between Russia and the West Amid Conflicts:
Turkey's nuanced approach in the Russia-Ukraine conflict, providing
support to Ukraine while avoiding direct confrontation with Russia,
reflecting its complex relationship with Western powers.

Evaluating the Feasibility of Turkey's SCO Membership

 Analysts Doubt Turkey's Potential SCO Membership: Experts
express skepticism about Turkey's likelihood of joining the SCO, citing
its NATO membership and EU candidacy as potential obstacles, along
with its geographical and political alignment with the SCO's
objectives.

Saudi Partners with China-led Security Bloc as Ties

Grow

Saudi Arabia Joins SCO as Dialogue Partner

 Saudi's Agreement with SCO: Saudi Arabia has agreed to join the
Shanghai Cooperation Organisation (SCO) as a dialogue partner,
 indicating closer political ties with China and a shift in its foreign
policy.
 SCO's Composition and Role: Details on the SCO, established as a
political, economic, and security organization in 2001, its members,
and its purpose as an alternative to Western institutions.

Strategic Developments and Investments

 Cabinet Approval and International Discussions: The decision for
partnership was approved in a cabinet meeting chaired by King
Salman, following discussions during Chinese President Xi Jinping's
visit to Saudi Arabia.
 Saudi Aramco's Investment in China: Saudi Aramco raised its
investment in China, signaling deepening economic ties, by finalizing
a joint venture and acquiring stakes in a Chinese petrochemical
group.

Saudi-China-Iran Triangle and Middle East Dynamics

 China-Brokered Saudi-Iran Reconciliation: The article discusses
the recent reconciliation deal between Saudi Arabia and Iran,
brokered by China, aiming to restore full diplomatic relations and
ease regional tensions.
 Xi Jinping's Role and Saudi-U.S. Relations: President Xi Jinping's
involvement in the reconciliation process and its implications on Saudi
Arabia's traditionally close partnership with the United States, amidst
recent strains over human rights and oil production issues.

Economic Cooperation Organization (ECO) and role of

Pakistan
From Inception to Expansion: ECO's Historical
Trajectory
 ECO's Foundational Shift from RCD: The Economic Cooperation
Organization (ECO) came into existence in 1985. It was established as a
successor to the Regional Cooperation for Development (RCD), which was
founded in 1964 by Iran, Pakistan, and Turkey. The transformation into ECO
in 1985 marked a significant expansion of the organization's scope and
objectives, with the inclusion of additional member states from the Central
Asian region.

 The Member States

 Diverse Nations Under One Umbrella: Showcasing the diversity
within ECO's composition, which includes Afghanistan, Azerbaijan,
Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey,
Turkmenistan, and Uzbekistan, each bringing unique cultural and
economic assets to the coalition.

Setting the Sails: ECO's Ambitious Goals

 Forging Economic and Cultural Synergies: ECO's primary aim is
to enhance economic collaboration and cultural exchanges among
member countries, fostering regional integration.
 Trade and Infrastructure Development: A key focus is on
developing trade links and improving transportation infrastructure to
facilitate smoother inter-regional commerce.
 Energy Cooperation and Sustainable Development: ECO places a
high priority on energy projects and initiatives for sustainable
economic growth, aiming to elevate the living standards across
member states.

ECO's Achievements
 ECOTA: Catalyzing Regional Trade: The establishment of the ECO
Trade Agreement (ECOTA) is a flagship achievement, significantly
enhancing trade relationships and reducing tariff barriers among
member countries.
 Connectivity and Infrastructure Projects: ECO's success in
launching pivotal infrastructure projects, like the Istanbul-Tehran-
Islamabad railroad, demonstrates its commitment to improving
regional connectivity.
 Energy Projects Driving Cooperation: Initiatives like the TAPI
pipeline underscore ECO's focus on energy collaboration, aligning
member nations in pursuit of shared energy security and economic
benefits.

Navigating Challenges: ECO's Journey Ahead

 Political Divergences and Security Dynamics: Addressing how
political differences among member states and regional security
issues pose challenges to the organization’s unified progress.
 Economic Disparities and Infrastructure Gaps: Analyzing the
impact of varying levels of economic development and infrastructural
capabilities among member states on the implementation of ECO
projects.
In summary, the Economic Cooperation Organization embodies a
collective endeavor to forge a path of economic and cultural unity among
its diverse member states. ECO's journey from its inception to its current
stature is marked by significant achievements in trade, transportation,
and energy, although it continues to face challenges that require
innovative solutions and steadfast commitment to its overarching goals
of prosperity and regional integration.

Pakistan's Strategic Engagement in the ECO: Aiming for

Regional Prosperity

Elevating ECO's Role in Global and Regional Trade:

Pakistan's Proactive Stance
 Boosting ECO's Trade Footprint: Emphasizing the need to increase
ECO's share in global trade from its current level of 2%, Pakistan
advocates for strategies to elevate the bloc's trade presence.
 Leveraging ECO's Intra-Regional Trade Potential: Highlighting
the contrast between ECO's intra-regional trade figures and the global
market, Pakistan identifies opportunities for growth within the
organization.
 Addressing Trade Imbalances within ECO: Acknowledging the
need to balance ECO's $39 billion regional imports against global
imports of $577 billion into the region, and $46 billion exports within
 the region against global exports of $459 billion, to harness the
organization's full trade potential.

Pakistan's Vision for ECO's Economic Transformation

and Competitive Edge
 Transforming ECO into an Action-Oriented Economic Bloc:
Advocating for a shift from rhetoric to action, Pakistan calls for
concrete measures to enhance ECO's economic competitiveness.
 Reducing Barriers to Economic Integration: Pakistan identifies
the reduction of economic barriers as key to fostering a more
integrated and efficient regional market within ECO.
 Promoting Competitive Economic Policies:

Harnessing Pakistan's Strategic Role in Realizing ECO's

Economic Goals
 Exploiting Pakistan's Geographical Advantage: Utilizing its
strategic location, Pakistan aims to improve trade routes and market
access for ECO member states.
 Enhancing Regional Connectivity through Infrastructure
Projects: Leveraging initiatives like the China-Pakistan Economic
Corridor (CPEC) to improve connectivity and trade within the ECO
region.
 Facilitating Economic Growth Through Regional Collaboration:
Exploring collaborative projects and trade agreements to stimulate
economic growth across ECO member states.

Strengthening Diplomatic and Cultural Ties within ECO

 Fostering Stronger Bilateral Relationships: Through meetings
with leaders of ECO countries, Pakistan seeks to solidify its diplomatic
ties and explore new cooperative avenues.
 Cultural Diplomacy as a Catalyst for Closer Ties: Utilizing
cultural exchanges and visits to historical sites, such as the shrine of
Imam Bukhari in Samarkand, to deepen mutual understanding and
trust among ECO members.
In conclusion, Pakistan's role at the ECO Summit is critical in advocating
for and implementing strategies to enhance the organization's global and
regional trade impact. By focusing on economic integration, competitive
policies, strategic collaborations, and diplomatic engagements, Pakistan
is positioned as a key driver in ECO's journey towards achieving its full
economic potential.

Has SAARC withered or can it revise itself and play a

role in regional politics and economy?

Foundations and Framework of SAARC

 The Genesis of a Regional Vision: Established in 1985, SAARC was
conceived to promote economic and regional integration among its
eight member states: Afghanistan, Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan, and Sri Lanka.

Glimpses of Success: SAARC's Notable Triumphs

 Early Days of Promise: SAARC achieved initial success in fostering
regional understanding and cooperation, particularly in cultural and
humanitarian initiatives.
 SAFTA: A Step Towards Economic Integration: The South Asian
Free Trade Area (SAFTA), established in 2006, aimed to reduce
customs duties of all traded goods to zero by the year 2016, a
significant move towards economic collaboration.

Stumbling Blocks: The Indo-Pak Dynamics and

Organizational Hurdles
 The Shadow of Indo-Pak Tensions: Persistent political and military
tensions between India and Pakistan have significantly hampered
SAARC's progress, often leading to the cancellation or postponement
of annual summits.
 The Impact of Regional Conflicts: Specific incidents, such as the
2008 Mumbai attacks and the subsequent blame on Pakistani-based
groups, have led to heightened tensions and mistrust within SAARC,
affecting collaborative efforts.
 Economic Initiatives in Limbo: Projects like SAFTA have been
underutilized due to these tensions, with intra-regional trade
stagnating at around 5% of South Asia's total trade, far below its
potential.

Can SAARC Reinvigorate Itself?

 Overcoming Geopolitical Impediments: For SAARC to become
effective, it's crucial to address the Indo-Pak conflicts that often
overshadow the organization's agenda.
 Potential Pathways for Revival: Focusing on less contentious areas
such as trade, climate change, and public health could pave the way
for rebuilding trust and cooperation.
 Leveraging External Partnerships: Engaging with other
international players and organizations might provide new impetus for
SAARC's initiatives and help bridge divides.

Conclusion: SAARC's Crossroads - Towards Renewal or

Obsolescence?
 SAARC at a Juncture: The organization's future hinges on its ability
to navigate through the complex Indo-Pak relationship and refocus on
economic and social development goals.
 The Imperative for Collaborative Leadership: A concerted effort
from all member states, particularly India and Pakistan, is essential to
move SAARC beyond its current impasse and towards a more
integrated and prosperous South Asia.
In conclusion, SAARC's journey has been significantly impacted by the
Indo-Pak dynamics, affecting its ability to realize its full potential. While
the organization has had successes, particularly in areas like cultural
cooperation and economic agreements, the recurring conflicts between
India and Pakistan have stalled substantial progress. For SAARC to
reemerge as a powerful regional entity, it must find ways to mitigate
these tensions and refocus on common goals that benefit all member
states.