ISLAMABAD: Pakistan and China have co-chaired the fifth round of consultations on the establishment of the Shanghai Cooperation Organization (SCO) Development Bank, with representatives from 29 countries discussing the proposed institution’s operational parameters.
The consultations were held on Sept 14-15 in China’s Hangzhou city marking the latest step toward establishing a regional financial institution that Pakistan has consistently supported as part of efforts to strengthen economic cooperation among SCO member states.
According to the SCO Secretariat, the two-day consultations involved a “thorough exchange of views on the operational parameters of the SCO Development Bank” and were held in a constructive atmosphere.
The political decision to establish the SCO Development Bank was taken at the SCO Council of Heads of State meeting in Tianjin on Sept. 1 last year.
The Tianjin Declaration said interested SCO member states had resolved to establish the bank and intensify consultations on issues related to the functioning of the financial institution.
The latest round of consultations comes shortly after the Sept 1, 2026, Bishkek Declaration, in which SCO member states noted progress toward establishing the bank and stressed the importance of continuing work in this area.
SCO financial institutions
Pakistan has previously backed the establishment of the SCO Development Bank as part of its broader push for greater economic integration within the organization.
In April, Finance Minister Muhammad Aurangzeb conveyed Pakistan’s “full and unconditional support” for the establishment of the SCO Development Bank during a meeting with his Chinese counterpart, Lan Fo’an, in Washington.
Pakistan’s Finance Ministry said the position reflected Islamabad’s commitment to regional cooperation ahead of its SCO presidency.
Pakistan had also called for the establishment of the Development Bank during the SCO Council of Heads of Government meeting in Moscow in November 2025.
Deputy Prime Minister and Foreign Minister Ishaq Dar said Pakistan should take concrete steps toward promoting the use of national currencies for mutual settlements and establishing the “SCO Development Bank, SCO Development Fund, and Investment Fund.”
“Such tools and measures will help the SCO region offset international financial shocks and advance development initiatives,” Dar said in his statement.
The latest consultations therefore place the proposed bank among the key economic initiatives moving from political endorsement toward discussions on its practical functioning.
Economic cooperation with EAEU
The Development Bank discussions came as the SCO also moved to deepen economic cooperation with the Eurasian Economic Union (EAEU).
The SCO Secretariat on Sept 17 hosted the EAEU Days in Beijing, featuring a roundtable on “EAEU-SCO: Activating Economic Cooperation” and the signing of an Action Plan for implementing the memorandum of understanding between the SCO Secretariat and the Eurasian Economic Commission.
The action plan provides for joint activities involving the SCO and EAEU business councils in areas including agro-industry, food security and customs regulation, as well as information exchanges on the green economy, digitalization and information and communication technologies.
SCO Secretary-General Nurlan Yermekbayev said the two organizations share an interest in expanding mutual trade, transport connectivity, industrial cooperation and investment ties.
He also highlighted the “shared aspiration to expand mutual trade” and develop stronger connectivity and investment links between the two groupings.
Senior diplomats from Pakistan and India participated in the EAEU-SCO roundtable alongside representatives from other SCO member states, according to the SCO Secretariat.