From Energy Crisis to Energy Security: Pakistan’s SCO Journey – Qaiser Nawab

Qaiser Nawab

The CARs are rich in energy resources, enabling Pakistan to import energy resources at a relatively cheap rate. Furthermore, the SCO has formed an Energy Club that facilitates transparent and effective energy export and import. In 2023, Pakistan approved an agreement to import Liquefied Natural Gas (LNG) from the State Oil Company of Azerbaijan Republic (SOCAR) in addition to the shipment of Russian crude oil.

Pakistan is also seeking to meet its energy requirements by furthering natural gas from the CARs through the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. The TAPI project aims to transport natural gas from Turkmenistan through Afghanistan and Pakistan to India. This project has the potential to benefit Pakistan by enhancing its energy security and alleviating its economic woes.

Pakistan recently revived the TAPI pipeline and overcame implementation challenges. In June 2023, Pakistan’s Petroleum Minister Musadik Malik announced the signing of the TAPI joint implementation plan in Islamabad. The upgraded pipeline would enable Russia to transit its natural gas to Turkmenistan via Kazakhstan, expanding the capacity to supply natural gas to Pakistan on behalf of Russian Gazprom.

Pakistan’s geo-strategic location plays a vital role in maximizing its economic benefits from SCO membership. Its distinctive geography offers land links for interconnectivity and the shortest route to warm waters, which benefit trade and commercial activities among all SCO members. Pakistan also plays a crucial part in North-South trade, providing an energy corridor from Gwadar to the Central Asian Republics.

The Pak-China memorandum of understanding on the Kashgar-Gwadar Road and railway’s launch is a positive step that will likely generate millions of dollars in transit fees for Islamabad. The shorter transit route to China compared to the South China Sea benefits Pakistan’s position and elevates its status.

Thus, SCO membership offers Pakistan an opportunity to integrate itself into the world economic landscape. Pakistan has completed the necessary procedures for full membership and now needs to prove its capabilities in the Business Council of the SCO, Business Forum, and Interbank Association.

Furthermore, the SCO’s character seeks to establish regional stability by linking member states and resolving their bilateral differences. It offers institutional mechanisms for regular engagement among states, providing a platform to resolve conflicts during leadership meetings.

For Pakistan, the SCO offers an important political imperative: the opportunity to develop and increase bilateral engagement with India, with which relations have deteriorated. The multilateral forum can serve as a bridge between Pakistan and Delhi, facilitating normalization of the relationship and resolution of outstanding issues such as the Kashmir dispute.

Pakistan’s foreign minister’s participation in the meeting of SCO foreign ministers in April 2023 marked a significant breakthrough in diplomatic interaction between the two countries after nearly 12 years. By participating in SCO meetings, Pakistan and India can create a favorable environment for normalization.

Pakistan’s role in the SCO has multifaceted prospects for enhancing regional cooperation, economic opportunities, counter-terrorism collaboration, and increasing its geopolitical influence. It highlights the positive transformation Pakistan has experienced as an active participant in the regional organization. Through high-level discussions with other member states, including Russia and China, Pakistan can present its perspective on important regional issues such as Afghanistan, terrorism, and security.

The SCO has also helped Pakistan influence Afghanistan’s affairs to avoid regional instability. Pakistan’s membership in the SCO, coupled with its participation in the Belt and Road Initiative (BRI), has further increased the significance of the China-Pakistan Economic Corridor (CPEC). Economically, SCO membership has strengthened Pakistan’s position in the region by opening new avenues for trade and investment.

The SCO’s emphasis on regional connectivity aligns with Pakistan’s vision of growth and connectivity, benefitting its flagship project, CPEC. Pakistan’s inclusion in the SCO has yielded significant political and economic benefits. This paper highlights the positive developments since Pakistan’s membership and suggests measures for further cooperation.

Similarly, Pakistan has reinvigorated its bilateral relations with Russia, an important member state. The bilateral relationship between Russia and Pakistan has historically been strained since Pakistan’s independence. However, in a significant development on May 24 of this year, the first oil tanker carrying cheap crude oil from Russia arrived at Karachi port, marking a milestone in their renewed cooperation. Initially, an impressive quantity of one lakh metric tons of affordable crude oil has been imported from Russia.

It is worth noting that Russian crude oil is anticipated to yield a higher proportion of furnace oil compared to Arab crude oil, while providing a lesser amount of petrol. Nevertheless, the contemporary international political landscape, characterized by Russia’s strategic shift towards the East, has further facilitated regional connectivity with Asian states.

Moreover, the withdrawal of the United States from Afghanistan has served as a catalyst for Pakistan’s increased focus and investment in the regional landscape. Through sustained high-level interaction and the implementation of institutional mechanisms within the SCO, bilateral relations between Pakistan and Russia have embarked on a promising upward trajectory.

About the Author:
Mr. Qaiser Nawab is a highly esteemed international expert on the Belt and Road Initiative (BRI), Afghanistan, South and Central Asia.