Last week, Pakistan assumed the chairmanship of the Shanghai Cooperation Organisation (SCO) for 2026-27 from Kyrgyzstan. It will host the organisation’s Council of Heads of State summit in 2027. Its new role affords Islamabad an opportunity to reinforce its diplomatic, political and economic engagement with member states of the grouping.

Lahore has also been designated the SCO Tourism and Cultural capital, giving Pakistan another platform to showcase its cultural heritage and tourism potential while it leads the organisation.

The handover came as the SCO marked its 25th anniversary at the Bishkek summit on August 31-September 1, where member states adopted a declaration setting out the organisation’s political and economic priorities.

The declaration seeks to reinforce the organisation as a platform for multilateral cooperation amid growing geopolitical tensions, protectionism and divisions along political and economic lines. It said the SCO is neither a military nor a political bloc and is not directed against any country or international organisation.

Pakistan should push for proposals on trade, connectivity, tech and access to Central Asian markets

It reaffirmed the principles of openness, non-interference, equality and mutual respect, while rejecting bloc-based confrontation. The Bishkek Declaration also reaffirmed the role of the United Nations and international law in resolving disputes, and called for greater participation by developing countries in global decision-making. Member states opposed unilateral coercive measures, saying such actions can undermine food, energy and humanitarian security.

The declaration’s position on the US-Israel war on Iran was prominent. SCO leaders condemned military strikes on Iranian territory and called for the conflict to be resolved through political and diplomatic means. They reaffirmed Iran’s sovereignty and territorial integrity. On Palestine, members stressed that lasting peace in the Middle East required a comprehensive and just settlement of the Palestinian question.

Security remains an important part of the SCO agenda, but the emphasis is on coordination among member states rather than military alliances. Members reaffirmed their commitment to combating terrorism, separatism and extremism and rejected the use of such groups for political purposes. They also called for counterterrorism efforts to be conducted with a central role for the United Nations.

Afghanistan remains a particular concern for the organisation because instability there has direct security and economic implications for several SCO members, including Pakistan. The grouping reiterated its support for a peaceful, independent and neutral Afghanistan free of terrorism, war and drugs, and expressed readiness to support international efforts aimed at the country’s stability and development.

For a country seeking to expand IT and technology exports, links with the large markets and technology ecosystems represented within the SCO could be more valuable than simply increasing conventional goods trade

Technology now occupies a larger place on the SCO’s security agenda. Members opposed the militarisation of information and communications technologies and threats to critical information infrastructure, while supporting the safe and responsible use of artificial intelligence. They also backed greater cooperation in digital infrastructure, scientific research and peaceful nuclear technology.

For Pakistan, however, the more immediate gains may come from the SCO’s economic agenda.

The Bishkek Declaration places emphasis on trade, transport, energy, digital commerce and investment. Members backed a transparent and non-discriminatory multilateral trading system, fairer market access and special treatment for developing countries. They also agreed to implement the SCO Economic Development Strategy to 2030 and deepen financial cooperation.

The declaration calls for new and modernised road and rail links, multimodal transport corridors, logistics centres and greater use of digital technologies. Cross-border e-commerce and digital settlement of commercial disputes are also identified as areas for cooperation.

For Pakistan, connectivity is perhaps the most tangible opportunity for now. The country’s geography gives it potential access to Central Asian markets while its ports can provide these landlocked economies with routes to the Arabian Sea.

Yet Islamabad has so far captured only a fraction of the transit and trade potential offered by its location. Improved SCO connectivity should help Pakistan develop into a more effective transit and logistics hub, linking Central Asian economies with seaports and international markets. But that would also require efficient borders, reliable customs, storage facilities and predictable trade rules if Islamabad is to attract transit traffic.

The emphasis on logistics centres, seaports and transport corridors also fits closely with Pakistan’s interest in expanding the economic potential of Gwadar and the China-Pakistan Economic Corridor (CPEC). Barring India, all SCO members reaffirmed support for the Belt and Road Initiative (BRI) and efforts to align it with the Eurasian Economic Union.

Energy is another area where regional cooperation could serve Pakistan’s interests. SCO members called for deeper cooperation in oil and gas, electricity and new energy, as well as more stable and balanced global energy markets. Pakistan, which remains heavily dependent on imported energy, needs more secure and diversified sources of supply. Regional electricity trade, gas infrastructure and cooperation in renewable energy could help reduce some of that vulnerability.

The SCO’s growing focus on digital infrastructure also creates room for Pakistan. Cooperation in data centres, artificial intelligence, digital commerce, cybersecurity and technology skills could help the country participate more deeply in regional digital value chains. For a country seeking to expand IT and technology exports, links with the large markets and technology ecosystems represented within the SCO could be more valuable than simply increasing conventional goods trade.

The declaration’s agenda extends to agriculture, healthcare, education, scientific research, tourism and environmental cooperation. New platforms for cooperation among health-management experts and national academies of science, alongside work on green technologies, biodiversity and energy efficiency, offer further scope for joint projects.

Pakistan should therefore use its SCO chairmanship to push specific proposals on trade routes, border connectivity, transit arrangements, energy cooperation, digital infrastructure, investment and access to Central Asian markets.

The Shanghai Spirit — mutual trust, equality, consultation and mutually beneficial cooperation — will have greater meaning for Pakistan if it produces faster trade routes, new investment partnerships, stronger energy links and greater regional commerce. Whether the year leaves behind stronger trade, transport, energy and investment links between Pakistan and the wider region will be the real test of its chairmanship.

The writer is a Dawn staffer

Published in Dawn, The Business and Finance Weekly, September 7th, 2026