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Premiers have been deployed in the East
The 23rd meeting of the heads of government of the Shanghai Cooperation Organization (SCO) was held in Islamabad on Wednesday. The prime ministers discussed ways to develop trade and economic cooperation between the member countries of the Association. In particular, this is the creation of a mechanism for joint project financing. The creation of a special account for this support and the emergence of a development bank and the SCO Development Fund, which have been discussed for more than ten years. In a statement adopted following the meeting, the Association countries also confirmed their intention to increase the share of their currencies in mutual agreements.
The SCO Heads of Government Meeting was a very important event for Islamabad. As a result, the three days were declared public holidays and security measures in the capital were significantly tightened. Additional military forces were also deployed to protect the Red Zone, where government offices are concentrated and major high-level events are held. Islamabad was visited by many distinguished guests, including the heads of government of Belarus (attending the summit for the first time as a full member of the SCO), Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, Mongolia (an observer country) and Turkmenistan (an honorary member of the meeting). The Indian Foreign Minister also visited Pakistan for the first time in a decade, which went unnoticed given the extremely difficult relations between Delhi and Islamabad.
Pakistani Prime Minister Shehbaz Sharif, opening the meeting, called for using the gathering to exchange ideas and develop concrete action plans. He said the SCO should “promote the vision of a united Eurasia” and invest in infrastructure projects in the macro-region, rather than simply increasing bilateral trade.
Russian Prime Minister Mikhail Mishustin said that improving transport links between the countries and creating effective logistics routes are top priorities. In particular, using the transport potential of the East-West and North-South corridors will lead to an increase in cargo flows. The Prime Minister recalled that several years ago an agreement was signed to open six automobile routes that would be covered by multilateral logistics permits. "Unfortunately, the agreement is not being implemented today. We call on our colleagues to resolve differences and begin implementing the agreement," Mikhail Mishustin addressed the country's representatives.
The Russian Prime Minister reported that by the end of 2023, the volume of trade between the SCO member states and the Russian Federation reached 30 trillion rubles, having increased by 5.5% in the first half of 2024.
President Mikhail Mishustin raised the issue of international settlements involving the Russian Federation, stating that it is necessary to focus on "protecting the financial sector from the influence of third countries" and implementing a roadmap to increase the share of national currencies in mutual settlements. The Prime Minister pointed out the need to create an independent payment and settlement mechanism of the SCO, for example, in the form of an electronic platform or a banking institution.
Mikhail Mishustin also proposed creating a financial support instrument for SCO project activities. The option indicated was the creation of a special account through which the project would be supported at the first stage. This could be implemented through public-private partnerships, especially with the help of national budgets and development agencies.
Prime Minister of Belarus Roman Golovchenko called for intensifying work on the creation of a development bank and the SCO Development Fund, which could be used, among other things, to finance joint projects. These ideas were discussed in the SCO as follows: More than 10 years. The Belarusian Prime Minister also proposed creating an SCO Inter-Exchange Union to "stabilize prices on the markets of member countries and increase the volume of foreign currency."
Following the meeting, the prime ministers signed a number of documents, including a joint statement, in particular, instructing the national departments of the SCO to strengthen consultations on the aforementioned banking and fundraising mechanisms and confirming their readiness to increase them. The share of national currency by mutual agreement.