Conference proposes SCO bank

Business leaders have called for the establishment of a dedicated investment and trade development bank within the Shanghai Cooperation Organisation (SCO), aimed at facilitating transactions in local currencies. The proposed bank would operate independently of the US dollar, euro, or British pound, promoting trade through local currencies, a common currency, or barter systems to reduce reliance on Western financial systems.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Golden Ring Economic Forum (GREF) at FPCCI Regional Office Lahore organised a roundtable Conference on "SCO and Pakistan's Economic Interests," according to a press statement released on Monday.

President FPCCI Atif Ikram Sheikh and Regional Chairman and Vice President Zaki Aijaz said that the SCO includes several member states, with varying populations and economic significance including China with about 1.4 billion people, India with the same at 1.4 billion, Russia with about 145 million, Pakistan standing at 240 million, Kazakhstan at about 19 million, Kyrgyzstan at approximately 6.5 million, Tajikistan standing at nine million and Uzbekistan with nearly 35 million. The FPCCI vice president said that the SCO member states are rich in natural resources, have large labour forces, and play crucial roles in regional trade, energy supply, and geopolitical stability.

Aijaz highlighted the SCO's role as a key forum for fostering regional integration through increased trade, investment, and cultural exchange. "At this crucial moment, as Pakistan positions itself within this multilateral framework, it is imperative that we engage in constructive dialogue to capitalize on the opportunities presented by the SCO," he said. He pointed to the China-Pakistan Economic Corridor (CPEC) as a prime example of economic cooperation within the region, noting that Pakistan's borders with China and India are essential for trade routes, economic collaboration, and regional security.

Sheikh, the FPCCI President, stressed the importance of regional cooperation in the evolving global economic landscape. "The vast potential for trade, energy partnerships, and infrastructure development within the SCO framework is immense, and Pakistan stands to benefit greatly by advancing these avenues," he said. He added that Pakistan must pursue proactive policies that align with the dynamic needs of the region and its own strategic objectives.

Lt Gen Sikander Afzal (Retd) Chairman of GREF and Hasnain Reza Mirza, Founder and President of GREF said that this conference aims to develop a broad-based multilateral policy framework for member countries' economic, educational, financial, and industrial cooperation and joint working, to establish SCO joint chamber of agriculture, commerce, industry and mines, establish local currency SCO investment and trade development bank, independent of dollar/euro or GB pounds for all transactions and to promote trade in local currencies or a common currency and barter.

Other proposals included the creation of an SCO Energy Council, an SCO Environment Agency, and an SCO Education Framework to promote degree equivalence and shared curricula across member countries. These initiatives, they suggested, would help foster long-term, sustainable economic growth and cooperation within the region.