SCO Membership for Economic Development of Pakistan

A visible drift towards multi polar world is a wakeup call. In the ending years of 20th century economic development and defence cooperation among Asian nations have presented them as a formidable bloc. Presence of Russia, China, India and central Asian republics formulate a strong regional coalition. On the south western borders of Asia outbreak of war against terrorism has created smoggy conditions for economic growth. Tensions among the western power sharers and Iran, and political milieu in Pakistan and Afghanistan leave little room for economic cooperation. Since the US-led war against terrorism has started, Pakistan has shady relations with all: India, Iran and Afghanistan. China is the sole supporter in many ways. Limited options and unlimited challenges create a very desperate situation for Pakistan, especially in terms of economy. In the wake of all this scenario Pakistan feels very clutched, fractured and insignificant among Asian powers. Undoubtedly, the potential and assets are much higher, but liabilities and pressures have magnified over past few years and things have worsened.

Economic condition of Pakistan reflects that the country is not on right track. With the GDP growth rate of only 2.4%, urban unemployment of 7.8%, youth population of around 61% that is largely underemployed and ill educated, trade deficit of around 14 billion US dollars and with increasing poverty and population it is a Herculean task for Pakistan to cope up with the challenges of modern economic system.

World at large has been suffering from serious economic crunch for half a decade or more. Nations are exploring various options to ensure their survival and striving for smooth economic growth. Hence, Pakistan must realise and look forward to all available options to rejuvenate the damaged and disaster hit economy. In this region, Pakistan holds a very significant position strategically. World on the east has this realisation that Pakistan is the door to access the west. Quite unfortunately, where the other regional economic blocs have been doing exceptionally well in the field of economic cooperation, Saarc is not doing noticeably well. This forces Pakistan to extend a hand of cooperation towards other regional economic blocs to ensure economic growth.

Why SCO is a better option for Pakistan? : A Rationale:

Pakistan’s policy makers are yet not out of anti-Indian syndrome and even less change has been seen in Indian attitude in past six decades. As long as the political rift between the two powerhouses of South Asia is not ameliorated, economic and defence strategic development is beyond question. Water issues, territorial disputes and now terrorism; discussion never goes beyond these points and economic stalemate is the outcome. Pakistan has awarded MFN status to India lately but this is one option that will take time to make the most of it to its full potential. Talking about western border, both Iran and Afghanistan do not find Pakistan as a brotherly Muslim country with atomic potential, rather they show distrust in Pakistan because of its ties with western blocs in war against terrorism. This creates a tough state of affairs for Pakistan to survive in. So, it can be easily concluded that Saarc and OIC are not serving the purpose for which they have been formulated. Therefore, utilising the other options is the call of the day.

Pakistan has such an ideal location that can prove very beneficial in terms of political as well as economic ties. Pakistan provides trade route from east to the central Asia. Pakistan can also be a suitable choice for access to Europe for eastern powers. More importantly, Pakistan’s energy woes, unemployment, industrial backwardness and other such issues can be addressed in a better way.  Twenty-first century is the century of geo-economics. Since the eastern economic giants have converging interests of ousting the western influence in the region by developing their own defence and economic strengths it is time for Pakistan to realise that it is important to make new ties. Pakistan cannot carry on with developed economic states and stable political system by keeping hostile relations with regional powers or even by ignoring them. India especially has won the confidence of not only western powers but also of Russia and China. All are interested in joining hands with India for economic and defence ties.

 Therefore, SCO is a very viable and appropriate choice for Pakistan to develop relations with. SCO is the only organisation that has the observer status with UN, EU, Asean, CIS and OIC. All except China are the members of EEC as well. It is the only regional bloc that is thinking of replacing the current banking system with its own model. In west SCO is considered thoroughly as a defence organisation that is meant to curtail Nato and US influence in the conflict regions. Currently, India, Iran and Pakistan are having the observer status in SCO. Russia and China have shown strong liking for the full membership of India. If this happens then Pakistan will find it more difficult to establish itself at the diplomatic and international front and protect its economic and political interests.

In the last summit in June 2012, Russia had extended full support for extending full membership to Pakistan. This is very important for Pakistan to grab this opportunity and capitalise on it. Similarly, China has shown signs of positivity towards Pakistan. If Pakistan succeeds in attaining full membership of SCO it will be a breakthrough not only in economic sphere but in diplomatic and political arena as well.

In a nutshell, it is important to realise that Pakistan is currently facing a huge challenge of terrorism within the country as well as at its western border. The only reason Pakistan is known to the world is because of terrorism and personalities related to it. Pakistan’s administration, government and forces, all are facing tough challenges to save the country from further deterioration. In such conditions, full membership of SCO can prove to be a very positive way out from economic slum.