Deputy Prime Minister and Foreign Minister Ishaq Dar on Tuesday encouraged members of the Shanghai Cooperation Organisation (SCO) to use national currencies for “mutual settlement” and establish other financial mechanisms to “offset international financial shocks”.
He made the remarks while addressing the SCO Council of Heads of Government (CHG) meeting in Tajikistan’s capital Dushanbe, where he arrived a day earlier.
The SCO comprises 10 member states, namely Pakistan, China, India, Iran, Russia, Kyrgyzstan, Belarus, Kazakhstan, Tajikistan and Uzbekistan. The two observer states are Afghanistan and Mongolia. The CHG is the SCO’s second-highest decision-making body and provides guidance on economic, financial, trade, connectivity and socio-economic cooperation, as well as the organisation’s budgetary matters.
Addressing the SCO meeting, Dar highlighted the “need to accelerate efforts to promote the use of national currencies for mutual settlement”, as well as to establish the SCO Development Bank, SCO Development Fund and SCO Investment Fund.
“Such tools are measures which will advance development initiatives and help the SCO region to offset international financial shocks,” the former finance minister noted.
Dar reiterated his call to accelerate local currency settlements in a later address to an expanded-format session of the meeting.
Two members of the SCO, Russia and Iran, face Western sanctions restricting their access to international markets and stifling their economic growth.
In the joint communiqué for the Pakistan-chaired 2024 CHG meeting, SCO member states had reaffirmed the need for consistent implementation of a roadmap on gradual increase in the share of national currencies in mutual settlements.
It underlined the need to protect and promote the World Trade Organisation’s multilateral trade system for inclusive global growth and reduce reliance on the American currency for international trade transactions.
At that summit, PM Shehbaz Sharif had noted “growing consensus among the member states on the use of mutual currencies for settlements” and said such a transition would “shield us from global financial disruptions”.
Speaking in Dushanbe, Dar highlighted that the China-Pakistan Economic Corridor (CPEC) offered “every SCO partner a compelling opportunity to participate in and accelerate our shared journey towards comprehensive economic integration”.
“For our region to achieve seamless economic integration, targeted investment in core sectors, most notably in energy and transport, is vital,” he stressed.
The foreign minister criticised “protectionist policies and unilateral coercive measures”, saying they contradicted the principles of international law, “suppress economic growth, block technological progress and increase inequality”.
“Therefore, reform of the global financial architecture and trade regimes is essential for achieving equitable global development,” the deputy PM declared.
He said Pakistan strongly advocated for “expanding investments into high-potential industries, including agriculture, mining and minerals, and information technology, to build a resilient and interconnected economic future”.
He expressed Pakistan’s “belief that artificial intelligence, digital transformation, innovation, energy cooperation and international information security should become important pillars of future cooperation within the SCO”.
Dar then recalled the priority areas identified by PM Shehbaz for the SCO Council of Heads of State (CHS) summit that Islamabad is set to host in 2027.
These comprised peace, security and mutual trust; regional connectivity and trade; innovation, AI and digital transformation; climate resilience and sustainable energy; and people-to-people exchanges.
He emphasised that strategic investment in transport and energy infrastructure was not merely beneficial but “absolutely imperative for true regional economic integration”.
At the outset of his speech, Dar extended his appreciation to the Tajik government and people for their “very warm and generous hospitality”.
“For the past 25 years, the SCO has remained anchored in the Shanghai spirit of mutual trust and respect for diversity and expanded its mandate to encompass trade, infrastructure, culture and innovation,” he noted.
Dar went on to state that Pakistan’s journey within the SCO highlighted its commitment to the Shanghai spirit, recalling that the country’s chairmanship of SCO’s Regional Anti-Terrorist Structure (SCO-RATS) and the SCO Working Group on Poverty Alleviation.
He said Pakistan intended to highlight the role of small and medium enterprises in reducing poverty.
‘Pakistan wants peaceful, regionally integrated Afghanistan’
During his speech at the CHG summit, DPM Dar also raised the issue of cross-border terrorism emanating from Afghanistan.
Noting that sustainable economic development cannot be guaranteed without durable peace and security in the region, he said ensuring stability in Afghanistan was “imperative” for safeguarding regional peace.
“Pakistan continues to be desirous of a peaceful, stable, regionally integrated and prosperous Afghanistan, which is at peace with itself and its neighbours.”
The deputy premier pointed out that Islamabad had only one expectation from the “Afghan Taliban regime: that Afghan territory should not be used for terrorism against Pakistan and the world”.
He reaffirmed Pakistan’s commitment to a peaceful and stable neighbourhood as an essential foundation for regional development and prosperity.
Islamabad has repeatedly urged the Taliban administration in Kabul to dismantle terrorist sanctuaries on Afghan soil, particularly those linked to the banned Tehreek-i-Taliban Pakistan, that are used for attacks in Pakistan. Officials say those appeals have gone unheeded.
Concluding his address, Dar congratulated Tajikistan and the heads of SCO’s permanent bodies on the successful completion of the CHG meeting, and congratulated Uzbekistan for taking over the chair. He also commended the SCO national coordinators for their help in finalising documents.
He stated: “The fundamental strength of the SCO is anchored not only in our deeply intertwined histories, but more importantly, in the resilient, shared future that we collectively choose to forge.
“Pakistan stands resolute in its commitment to serve as an active architect of this shared destiny, and to shape the next decade of Eurasian connectivity and economic prosperity.”
Recommendations to deepen intra-SCO cooperation
Addressing an expanded-format session of the CHG meeting later, Dar reaffirmed Pakistan’s commitment to regional harmony, trade, transit connectivity and economic integration as “a natural bridge connecting South Asia, Central Asia, and Eurasia”.
“Pakistan firmly believes that dialogue and diplomacy offer the most effective path to resolving regional tensions,” he said, highlighting the country’s efforts for de-escalation in the Middle East.
To this effect, Pakistan remains engaged in mediation efforts between the US and Iran, he added.
“We will continue to support all efforts for dialogue and peaceful resolution of disputes for lasting peace and stability,” the foreign minister said.
“Our diplomatic strategy is guided by our firm belief that regional challenges require collective, cooperative, and sustainable multilateral solutions.”
He went on to highlight that SCO had transformed from a regional confidence-building platform into a premier transcontinental organisation representing over 40 per cent of humanity.
Dar further highlighted that the intra-SCO trade had expanded significantly, proving that cooperative multilateralism can effectively drive stability and sustainable development across our shared continent.
“The future prospects of the SCO remain bright,” the deputy premier remarked, noting that the region was situated at the crossroads of major international trade corridors.
By leveraging our vast natural resources, technological advancements, and vibrant human capital, the SCO could lead digital transformation, industrial growth, and sustainable economic development across Eurasia, he emphasised.
To realise this vision, the foreign minister also proposed recommendations to deepen economic cooperation among SCO countries and expand international partnerships.
Firstly, Dar called for empowering the SCO Chambers of Commerce and Business Council by establishing direct business-to-business links and organising joint trade expos. He also urged member states to streamline customs procedures to support SMEs.
Secondly, he proposed the strengthening of the SCO Interbank Consortium (IBC).
“We must accelerate local currency settlements and enhance the SCO Interbank Consortium framework to mitigate external financial risks, harmonise cross-border payment systems, and facilitate seamless trade financing,” he said.
Pending the establishment of the SCO Development Bank, the IBC can play a more active role in financing infrastructure upgrades, Dar added.
He underlined that Habib Bank Limited (HBL), the current chair of the IBC, can help advance this agenda through close coordination with fellow members.
At last, the foreign minister recommended expanding international partnerships.
“The SCO should actively expand structured partnerships with international organisations including the United Nations, Asean, the Economic Cooperation Organisation (ECO), and other international and regional financial institutions, to reinforce an open, rules-based, and inclusive regional order,” Dar underscored.
He added: “Pakistan recommends that the SCO adopt a forward-looking strategy focused on joint technological innovation, climate resilience, energy security and secure supply chains.
“We must also operationalise Eurasian energy and transport corridors while deepening people-to-people ties, cultural exchanges, and educational partnerships.”
Concluding his speech, Dar said Pakistan looked forward to welcoming the heads of state at the SCO CHS summit in Islamabad in August 2027.
“Pakistan remains steadfast in its resolve to foster a peaceful, interconnected, and prosperous SCO community. Together, let us forge a shared future of enduring prosperity for all our people,” he resolved.
Dar meets Tajik top leadership
Ahead of the SCO meeting, DPM Dar called on Tajik President Emomali Rahmon, along with other heads of delegations.
“President Rahmon welcomed the leaders and emphasised the importance of strengthening regional economic cooperation under the SCO to promote connectivity, stability and shared prosperity,” the Foreign Office (FO) said.
He, along with other delegates, was then welcomed by PM Qohir Rasulzoda.
Later in the day, Dar met with Tajikistan’s FM Sirojiddin Muhriddin on the sidelines of the meeting.
The two ministers “reaffirmed the longstanding brotherly ties between Pakistan and Tajikistan, rooted in shared history, culture and faith”, FO said.
They underscored the need to further expand trade and economic cooperation, enhance regional connectivity and strengthen cooperation in energy, security and people-to-people exchanges.
The foreign ministers also exchanged views on regional and global developments and underscored the importance of continued coordination at regional and multilateral forums to advance shared goals of peace and prosperity, FO added.
The deputy premier then returned to Islamabad in the evening after concluding his “productive visit”, FO said.
During his visit, Dar also held bilateral meetings with his counterparts from SCO member states on the sidelines of the SCO moot, according to FO.
On Monday, Dar held a meeting with the Tajik premier. He also met with China’s PM Li Qiang and Mongolia’s First DPM Jadambyn Enkhbayar on the sidelines of a banquet dinner hosted for the delegates.
Pakistan, which hosted a CHG meeting in October 2024, is now scheduled to host the CHS summit in 2027 after it assumed the chairmanship last month.
On Sept 30, Dar reviewed preparations for the CHS summit as SCO national coordinators, who were in Islamabad for a meeting, called on him.
In July, Pakistan hosted the 12th meeting of the Heads of Border Services of the Competent Authorities of the SCO.
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