Islamabad – Federal Finance Minister Muhammad Aurangzeb has voiced strong support for the Shanghai Cooperation Organization (SCO)’s plan to establish a dedicated Development Bank. In a virtual address during the meeting of Finance Ministers and Central Bank Governors of SCO member countries held in Beijing, China, the Finance Minister also welcomed the proposal to activate the SCO Network of Financial Think Tanks, calling it a vital step toward future-oriented economic collaboration.
Pakistan’s Commitment to Regional Economic Cooperation
Finance Minister Aurangzeb emphasized Pakistan’s commitment to promoting regional cooperation and highlighted the importance of Pakistan’s membership in the SCO. He described the organization as an effective multilateral platform for enhancing economic, financial, and diplomatic ties among member states. While regretting his inability to attend the meeting in person due to the ongoing budget preparation in Pakistan, Aurangzeb conveyed his eagerness to continue active engagement with the SCO agenda.
Importance of the SCO for Regional Growth and Stability
During his address, Aurangzeb lauded the SCO’s role in maintaining regional peace, stability, and economic prosperity. He acknowledged the organization’s achievements in advancing multilateral trade and financial cooperation and stated that Pakistan remains fully committed to the core principles of the SCO Charter and the “Shanghai Spirit,” which emphasizes mutual trust, shared development, and non-interference in domestic affairs.
Support for the SCO Development Bank
A central point in Aurangzeb’s speech was his enthusiastic endorsement of the SCO Development Bank. He termed the initiative as critical for unlocking development financing across member states, enabling sustainable infrastructure development, and boosting regional connectivity.
“The establishment of a SCO Development Bank can become a cornerstone of financial cooperation, offering tailored funding solutions to member countries, especially for cross-border transport, digital, and energy infrastructure projects,” Aurangzeb remarked.
He further noted that Pakistan envisions the bank adopting innovative financing models that incorporate digital finance, fintech solutions, and climate-resilient investment strategies. Such an approach, he emphasized, will promote inclusive and green growth across the region.
Advancing Digital Finance and Financial Inclusion
The Finance Minister placed significant focus on the role of the digital economy in shaping the region’s economic future. Citing Pakistan’s progress in expanding digital payment systems and enhancing access to financial services through mobile banking and fintech, he proposed greater intra-SCO cooperation on digital finance.
“We need to fully harness the power of digital technologies to foster inclusive economic growth. Financial inclusion is no longer a choice but a necessity for sustainable development,” he said.
Aurangzeb emphasized that digital innovation must be a key pillar of SCO financial cooperation, especially as member countries grapple with challenges stemming from global economic uncertainties.
Activating the SCO Network of Financial Think Tanks
In another important development, the Finance Minister expressed strong support for operationalizing the SCO Network of Financial Think Tanks. He described the initiative as a valuable resource for member states to share research, policy recommendations, and economic forecasts.
“A dedicated network of financial think tanks will not only strengthen evidence-based policymaking but also help synchronize regional strategies to tackle macroeconomic shocks, energy transitions, and climate-related financial risks,” he noted.
He added that such a platform could facilitate cooperation on issues such as regulatory harmonization, taxation, and investment promotion.
Addressing Global Economic Challenges
In line with the collaborative spirit of the SCO, Aurangzeb called for unified action to tackle major global challenges, including the ongoing economic slowdown, widening economic disparities between countries, and the existential threat of climate change.
He proposed that member states work together to create a development model that ensures shared prosperity and resilience. “Our region has the potential to become a growth engine for the global economy, provided we align our efforts and mobilize resources efficiently,” he said.
Infrastructure Development as a Catalyst for Growth
The Finance Minister also stressed the importance of large-scale infrastructure development in promoting economic connectivity and regional integration. He advocated for greater investments in transport corridors, energy grids, and digital networks to unlock trade and investment potential.
Pakistan, he said, is already engaged in regional connectivity projects such as the China-Pakistan Economic Corridor (CPEC), which could be aligned with broader SCO development goals to generate mutual benefits.
Reforms and Economic Stabilization in Pakistan
Aurangzeb used the occasion to update SCO members on Pakistan’s recent economic performance and reform efforts. He highlighted achievements in reducing the current account deficit, stabilizing the exchange rate, and restoring investor confidence.
“Through prudent macroeconomic management and structural reforms, we have managed to lay the groundwork for sustainable and inclusive economic growth,” he explained. Reforms in taxation, financial governance, and public sector efficiency were also cited as key contributors to this positive trajectory.
Chinese Appreciation for Pakistan’s Economic Progress
Earlier in the meeting, the Chinese Finance Minister and the Governor of the People’s Bank of China extended congratulations to Pakistan for its economic achievements. They appreciated Islamabad’s reform agenda and its efforts to maintain financial discipline amid challenging global economic conditions.
This acknowledgment from Beijing signals a strong vote of confidence in Pakistan’s fiscal and economic policies and reinforces the close partnership between the two countries within the SCO framework.
Looking Ahead: Strengthening Economic Cooperation Through the SCO
In conclusion, Finance Minister Muhammad Aurangzeb reaffirmed Pakistan’s dedication to strengthening regional economic ties through the SCO. He called for deepening cooperation in trade, finance, and development to ensure stability and progress across the Eurasian region.
“Let us continue to promote mutual trust, respect, and benefit to create a prosperous and interconnected future for all SCO members,” Aurangzeb said.
As the region faces both opportunities and challenges, Pakistan’s proactive role in supporting the SCO Development Bank and related initiatives positions it as a key stakeholder in shaping the economic destiny of the broader region.
