As Pakistan assumes the chairmanship of the Shanghai Cooperation Organisation’s (SCO) Council of Heads of State for 2026-27, Islamabad has an opportunity to place economic cooperation, development and regional connectivity at the centre of the organisation’s agenda. With a combined population of around three billion people, the SCO represents a vast geographical and economic space whose potential remains far from fully realised.
Prime Minister Shehbaz Sharif has outlined a broad agenda aimed at promoting cooperation in areas that directly affect the lives and livelihoods of people across the region. Information technology, artificial intelligence, energy development, poverty alleviation, disaster management, healthcare, culture and sports have been identified as areas where member states can pool their expertise and resources. Unlike contentious geopolitical questions, these sectors offer relatively practical avenues for cooperation and can help build trust among countries with often divergent strategic interests.
The real test, however, will be whether the SCO can translate these aspirations into meaningful action. The organisation has the potential to serve as an important platform for geo-economic cooperation across Central and South Asia, but its effectiveness will depend on the willingness of member states to prevent bilateral disputes from overwhelming the broader regional agenda.
Pakistan’s decision to raise issues such as terrorism and the weaponisation of water resources also reflects the realities confronting the region. These disputes cannot simply be ignored in the pursuit of economic integration. Persistent tensions create instability, discourage investment and undermine the connectivity and trade projects that are essential for long-term regional prosperity. Islamabad has therefore rightly argued that confrontation over such issues only risks creating further chaos and instability.
The SCO summit in Bishkek brought together leaders seeking to strengthen the organisation as a more coherent regional platform. Yet building a genuinely integrated bloc will require its major stakeholders—including China, Russia and Iran—to encourage greater engagement between Pakistan and India. No regional economic framework can reach its full potential while one of the region’s most consequential bilateral relationships remains dominated by mistrust and confrontation.
There are already examples of cooperation that could provide a foundation for such an approach. At last year’s Tianjin summit in China, Pakistan and India agreed in a joint communique to view terrorism through a common lens. That understanding should be expanded to other areas of mutual concern. The equitable and lawful management of shared water resources, particularly the Indus river system, is one obvious area where dialogue is urgently needed.
A direct meeting between the leadership of Pakistan and India could provide an important opening for rebuilding communication. Even limited engagement would demonstrate that regional institutions such as the SCO can facilitate dialogue rather than merely provide a platform for competing political narratives. The credibility of the organisation ultimately depends on whether it can help its members manage differences while pursuing shared interests.
The timing makes such cooperation even more important. The Middle East remains engulfed in conflict, while disruptions around the Strait of Hormuz threaten global energy markets and supply chains. Countries across Asia are consequently facing greater uncertainty over energy security, trade routes and commodity prices. In such an environment, regional organisations have a responsibility to strengthen economic resilience and keep channels of diplomacy open.
Pakistan can use its SCO chairmanship to promote precisely such an approach. Its previous experience of facilitating dialogue between major powers, including the United States and Iran, demonstrates that Islamabad can potentially play a constructive role in encouraging communication between countries with sharply different interests. The challenge now is to turn that diplomatic experience into a broader regional initiative.
The SCO cannot resolve every geopolitical dispute, nor should it attempt to become a forum for settling all bilateral conflicts. Its greatest value may instead lie in creating practical areas of cooperation that gradually build confidence among its members. Energy, digital connectivity, artificial intelligence, health, disaster preparedness, trade and transport corridors are issues on which countries can work together even when political differences remain unresolved.
Pakistan’s 2026-27 chairmanship therefore offers more than an opportunity to host meetings and formulate declarations. It is a chance to demonstrate that geo-economics can provide a common language for a region often divided by geopolitics. If the SCO can move from statements to implementation—and if its major members are willing to support dialogue rather than confrontation—it could emerge as a stronger vehicle for peace, connectivity and shared prosperity across Asia.
Shafaqna Pakistan
pakistan.shafaqna.com
Note: Shafaqna do not endorse the views expressed in the article
