Lahore (TDI): Business leaders have called for the establishment of a dedicated investment and trade development bank within the framework of the Shanghai Cooperation Organization (SCO) to facilitate transactions in local currencies.
The proposed bank would operate independently of the US dollar, euro, or British pound, promoting regional trade through local currencies, a common currency, or barter systems, thereby reducing reliance on Western financial systems.
The proposal emerged during a roundtable conference titled “SCO and Pakistan’s Economic Interests,” organized by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Golden Ring Economic Forum (GREF) at the FPCCI Regional Office in Lahore, according to a press release issued on Monday.
Atif Ikram Sheikh, President FPCCI, and Zaki Aijaz, Regional Chairman and Vice President, emphasized the significant economic potential of SCO member states, which include China, India, Russia, Pakistan, and several Central Asian countries.
Together, these nations represent vast populations and resource-rich economies that play crucial roles in regional trade, energy supplies, and geopolitical stability, he said.
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Aijaz underscored the SCO’s importance as a forum for regional integration through enhanced trade, investment, and cultural exchange.
“As Pakistan positions itself within this multilateral framework, it is crucial to engage in constructive dialogue to leverage the opportunities presented by the SCO,” he said.
He highlighted the China-Pakistan Economic Corridor (CPEC) as a key example of regional cooperation, noting that Pakistan’s borders with China and India offer vital trade routes and opportunities for economic collaboration.
FPCCI President Atif Ikram Sheikh stressed the need for regional cooperation in the evolving global economic landscape.
Vast Potential for Trade, Energy Partnerships
“The potential for trade, energy partnerships, and infrastructure development within the SCO framework is vast. Pakistan stands to benefit significantly by advancing these opportunities,” he said, urging Pakistan to adopt proactive policies that align with both regional needs and national strategic objectives.
Lt Gen (retd) Sikander Afzal, Chairman of GREF, and Hasnain Reza Mirza, Founder and President of GREF, outlined the broader policy framework being developed to enhance economic, educational, financial, and industrial cooperation among SCO member states.
They proposed the establishment of an SCO Joint Chamber of Agriculture, Commerce, Industry, and Mines, as well as an SCO investment and trade development bank.
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This bank would facilitate trade in local currencies or through a common currency, bypassing reliance on traditional Western currencies.
Other proposals discussed at the conference included the creation of an SCO Energy Council, an SCO Environment Agency, and an SCO Education Framework to promote degree equivalence and shared curricula among member states.
These initiatives, it was suggested, would foster long-term economic growth and regional cooperation.
