How the SCO summit can transform Pakistan’s economic landscape

The Shanghai Cooperation Organization (SCO) summit is a highly positive development for Pakistan, as most of the member countries share borders, creating excellent opportunities to enhance trade. Pakistan can learn a great deal from the development journeys of the countries participating in the SCO conference, especially in improving governance and ensuring transparency. Pakistan should take advantage of the experiences of SCO member states to address these challenges.

As a nation of 250 million people, Pakistan possesses a labour force that is among the cheapest in the world. It is essential that foreign investments coming into various sectors provide maximum employment opportunities for the people. This would not only improve their economic condition but also enable them to contribute more effectively to the country’s development. Additionally, Pakistan needs to focus on the information technology and e-commerce sectors, which offer vast potential for income generation. Trained professionals in the IT sector can work from home, earning substantial amounts every month, thereby playing a vital role in stabilizing the national economy. Moreover, political stability, adherence to the rule of law, and upholding the constitution are crucial for Pakistan’s success. Without these, Pakistan cannot earn a respectable place in the international community.

On the side-lines of the summit, Saudi Arabia announced investments exceeding $2 billion in sectors like agriculture and mining, which is a positive step for Pakistan’s economy. Similarly, major Chinese companies are investing in the economic zones being developed under the China-Pakistan Economic Corridor (CPEC). This will not only aid Pakistan’s economic progress but also help China continue its exports to the U.S. despite restrictions on direct exports from China. These investments will further strengthen the economic ties between the two friendly nations. Foreign investments in these sectors were urgently needed, and they will help improve Pakistan’s economic conditions, create local jobs, and reinforce relationships with allied countries.

In recent years, Pakistan has faced severe economic challenges, affecting everyone from ordinary citizens to major industrial and business entities, all fighting for survival. This situation highlights the urgent need for strict fiscal discipline and consistent, transparent decision-making at the government level to achieve economic stability. A case in point is the agreements made with independent power producers (IPPs) to address the energy crisis. These deals have become a burden on the economy, creating obstacles to Pakistan’s development. The public deserves to know whether the terms of these agreements, which have placed undue financial strain on consumers, were the result of deliberate decisions or personal negligence and corruption.

To avoid such situations in the future, foreign investment agreements, particularly those with friendly countries, should not be kept secret. Current agreements on foreign investments should be made public. While negotiating the terms of these deals, special care should be taken to avoid future disputes that could harm bilateral relations. Instead, these agreements should be a foundation for further investment and stronger ties. The best strategy would be to structure foreign investments as joint ventures between business entities rather than between governments. The role of the government should be to create favourable and equitable conditions for businesses, not to engage in business itself. Additionally, the government should focus on reducing energy tariffs and bank interest rates to lower the production costs of export goods. This would restore Pakistan’s competitiveness in the global market.

(Senior Politician, Former Federal Parliamentary Secretary)