At the Shanghai Cooperation Organisation (SCO) Summit held in Tianjin, Chinese President Xi Jinping unveiled a strategic proposal to establish an SCO Development Bank aimed at bolstering regional economic cooperation and reducing dependence on Western financial institutions.
The new bank is envisioned to finance infrastructure and development projects across member countries, injecting significant momentum into the bloc’s combined economy, valued at nearly $30 trillion.
“The SCO Development Bank will give a strong boost to infrastructure development and inject fresh momentum into the economies of member countries,” President Xi said, urging member states to expedite its creation.
China pledged 2 billion yuan (approximately $280 million) in free aid and an additional 10 billion yuan in loans to support the bank’s establishment. This move aligns with Beijing’s broader vision of promoting multilateralism while challenging hegemonism and the dominance of Western-led global financial systems.
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The summit also saw China reaffirm its commitment to landmark initiatives such as the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC), which Prime Minister Shehbaz Sharif of Pakistan highlighted as vital frameworks for regional connectivity and economic integration.
Using the SCO platform, Prime Minister Shehbaz Sharif called for a “comprehensive and structural dialogue,” facilitated by a third party, to resolve outstanding regional disputes particularly focusing on the Indus Waters Treaty (IWT) dispute with India.
He expressed concern over India’s unilateral suspension of the treaty and urged the SCO chairman to lead mediation efforts to ensure lasting peace and cooperation among member states.
“We respect all international and bilateral treaties and expect similar principles to be followed by all SCO members,” Shehbaz said, emphasizing Pakistan’s commitment to peaceful diplomacy, multilateralism, and respect for international norms.
In addition to diplomatic appeals, the Pakistani premier highlighted the severe humanitarian crisis facing his country due to unprecedented flooding caused by torrential rains, cloudbursts, and river overflows. He expressed gratitude for international support, particularly from China, which has provided rescue assistance and financial aid.
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Addressing regional security challenges, Shehbaz condemned terrorism and foreign interference in attacks such as the March hijacking of the Jaffar Express train in Balochistan, urging collective SCO action against extremism and separatism. He reaffirmed Pakistan’s sacrifices in combating terrorism, citing over 90,000 lives lost and economic damages exceeding $152 billion.
On the geopolitical front, the summit featured strong condemnations from Pakistan regarding Israel’s attacks on Iran and the humanitarian crisis in Gaza. Shehbaz reiterated support for a two-state solution to the Israeli-Palestinian conflict, calling for an immediate end to violence.
The summit further marked a milestone in SCO’s expansion as dialogue partners and observers were merged into a new category of SCO partner countries, bringing the total membership to 27 nations. This enlargement underscores the growing influence of the SCO as a platform for regional cooperation.
Beyond economic development, the Tianjin Declaration adopted at the summit emphasized the bloc’s opposition to the militarization of information and communication technologies, commitment to drug control cooperation, and plans to hold an SCO Plus Dialogue on security issues in Uzbekistan.
The summit was also notable for the presence of key world leaders, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, who jointly reinforced the bloc’s message of solidarity and genuine multilateralism.
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China and Russia underscored their aim to develop an alternative payment system to reduce reliance on the US dollar and counteract the impact of Western sanctions.
China announced plans to build an artificial intelligence cooperation center for SCO nations and invited members to participate in its lunar research station, highlighting the bloc’s commitment to scientific and technological collaboration.
