SCO Offers Pakistan $281M Financial Boost

Beijing/Islamabad, September 2, 2025, 08:39 PM PKT — The Shanghai Cooperation Organization (SCO) is set to unleash transformative opportunities for Pakistan’s financial sector, following China’s bold commitments to boost regional economic integration and development financing, as highlighted by Shaikh Muhammad Shariq, Vice President and Chief Representative of the National Bank of Pakistan (NBP) in Beijing, after the 25th Meeting of the Council of Heads of State of the SCO in Tianjin. Chinese President Xi Jinping pledged 2 billion yuan ($281 million) in grant aid this year and 10 billion yuan in loans over three years to SCO Interbank Consortium member banks, fueling development financing.

Shariq underscored that an SCO Development Bank could deliver critical liquidity and project financing for Pakistan, reducing reliance on Western institutions, while Pakistani banks gain access to regional credit lines for infrastructure, trade, and SMEs, with cross-border trade financing with China, Central Asia, and Russia poised to surge via local currency settlements (RMB, Ruble, Rupee), easing foreign exchange reserve pressure. He also highlighted Chinese expertise in digital payments, blockchain, and AI-driven credit scoring, opening doors to green financing, ESG products, and Islamic banking in Central Asia and Muslim-majority SCO states, plus participation in regional payment systems and CPEC-linked syndicated loans to boost financial inclusion, liquidity, and investor confidence. Web context on regional alliances shows past challenges, while posts found on X reflect optimism mixed with caution—some cheer funding, others question dependency. Critically, the narrative of “economic uplift” may mask geopolitical risks—web data hints at debt concerns, and X sentiment suggests distrust in balanced growth, pointing to potential pitfalls.