TIANJIN – The Shanghai Cooperation Organization (SCO) is set to unlock new opportunities for Pakistan’s financial sector after China announced fresh commitments to support regional economic integration and development financing. This was stated by Shaikh Muhammad Shariq, Vice President and Chief Representative of the National Bank of Pakistan (NBP) in Beijing, according to a report carried by Gwadar Pro. Following the 25th Meeting of the Council of Heads of State of the SCO in Tianjin, where Chinese President Xi Jinping on Monday pledged to provide 2 billion yuan (about $281 million) in grant aid this year and 10 billion yuan in loans to member banks of the SCO Interbank Consortium over the next three years to promote development financing, Shaikh Muhammad Shariq highlighted the potential benefits for Pakistan. He noted that the proposal to establish an SCO Development Bank could provide much-needed liquidity and project financing while reducing dependence on Western-led institutions. According to Shariq, Pakistani banks stand to gain from greater access to regional credit lines for infrastructure, trade, and SME development. He stressed that cross-border trade financing, particularly with China, Central Asia, and Russia, could expand significantly, while local currency settlements in RMB, Ruble, and Rupee would ease pressure on Pakistan’s foreign exchange reserves. He also pointed out that SCO cooperation could enable Pakistani banks to leverage Chinese expertise in digital payments, blockchain, and AI-driven credit scoring. This would open new avenues for green financing, ESG products, and Islamic banking, especially in Central Asia and other Muslim-majority SCO member states. Shariq further emphasized that Pakistani participation in regional payment systems and syndicated loans for SCO projects-particularly those linked with CPEC-could strengthen financial inclusion, enhance liquidity, and build investor confidence in Pakistan’s economy.
