Dar urges SCO states to trade in national currencies at Dushanbe summit
DUSHANBE: Deputy Prime Minister and Foreign Minister Ishaq Dar on Tuesday urged members of the Shanghai Cooperation Organisation to settle mutual trade in national currencies and build new regional financial institutions to shield the region from global financial shocks.
Addressing the 25th meeting of the SCO Council of Heads of Government (CHG) in Tajikistan’s capital, Dar said the bloc should “accelerate efforts to promote the use of national currencies for mutual settlement” and establish an SCO Development Bank, an SCO Development Fund and an SCO Investment Fund, Dawn reported. The Dar SCO national currencies appeal was the centrepiece of his address.
“Such tools are measures which will advance development initiatives and help the SCO region to offset international financial shocks,” the former finance minister told the gathering.
Why the Dar SCO national currencies push matters
The call carries weight because two SCO members, Russia and Iran, face Western sanctions that restrict their access to international markets. Settling trade in local currencies would reduce the bloc’s dependence on the US dollar for cross-border transactions.
The proposal builds on earlier groundwork. When Pakistan chaired the CHG meeting in October 2024, member states reaffirmed a roadmap for gradually increasing the share of national currencies in mutual settlements, stressing the need to protect the multilateral trading system. At that summit, Prime Minister Shehbaz Sharif had noted a “growing consensus” on the use of mutual currencies, saying such a transition would “shield us from global financial disruptions”.
The CHG is the SCO’s second-highest decision-making body, guiding economic, financial, trade and connectivity cooperation as well as budgetary matters. The 10-member bloc includes Pakistan, China, India, Iran, Russia, Kyrgyzstan, Belarus, Kazakhstan, Tajikistan and Uzbekistan, while Afghanistan and Mongolia hold observer status.
CPEC pitch and criticism of protectionism
Dar used the platform to present the China-Pakistan Economic Corridor as an opening for every SCO partner, calling it a “compelling opportunity to participate in and accelerate our shared journey towards comprehensive economic integration”.
He said targeted investment in energy and transport was “absolutely imperative” for true regional economic integration. He urged member states to expand cooperation in agriculture, mining, minerals and information technology, and said artificial intelligence, digital transformation, innovation, energy cooperation and international information security should become important pillars of future SCO cooperation.
The deputy prime minister criticised “protectionist policies and unilateral coercive measures”, saying they contradicted international law and suppressed growth. He declared that reform of the global financial architecture was “essential for achieving equitable global development”.
Dar also recalled the priority areas Prime Minister Shehbaz Sharif had identified for the SCO Council of Heads of State summit that Islamabad is scheduled to host in 2027: peace, security and mutual trust; regional connectivity and trade; innovation, AI and digital transformation; climate resilience and sustainable energy; and people-to-people exchanges. He said Pakistan intended to highlight the role of small and medium enterprises in reducing poverty, recalling the country’s chairmanship of the SCO’s Regional Anti-Terrorist Structure.
Afghanistan and cross-border terrorism
On security, Dar said durable peace was a precondition for economic development and called stability in Afghanistan “imperative” for regional peace. “Pakistan continues to be desirous of a peaceful, stable, regionally integrated and prosperous Afghanistan, which is at peace with itself and its neighbours,” he said.
He added that Islamabad had only one expectation from the Afghan Taliban regime: “that Afghan territory should not be used for terrorism against Pakistan and the world”. Pakistan has repeatedly urged Kabul to dismantle terrorist sanctuaries on Afghan soil, particularly those linked to the banned Tehreek-i-Taliban Pakistan. The issue has sharpened after Pakistan confirmed calibrated airstrikes against militant hideouts in Afghanistan earlier this month, and it also featured in recent Moscow-format talks on Afghanistan.
On the sidelines of the Dushanbe moot, Dar called on Tajik President Emomali Rahmon along with other heads of delegations. Dar arrived in Dushanbe a day earlier for the meeting, and on Monday he met his Tajik counterpart as well as China’s Premier Li Qiang and Mongolia’s First Deputy Prime Minister at a banquet dinner. Uzbekistan takes over the SCO chair from Tajikistan.
FAQ
What did Ishaq Dar propose at the SCO meeting in Dushanbe?
Dar urged SCO members to settle mutual trade in national currencies instead of the US dollar and to establish an SCO Development Bank, an SCO Development Fund and an SCO Investment Fund to offset international financial shocks.
Which countries are members of the SCO?
The SCO has 10 member states: Pakistan, China, India, Iran, Russia, Kyrgyzstan, Belarus, Kazakhstan, Tajikistan and Uzbekistan. Afghanistan and Mongolia are observers.
When will Pakistan host the next SCO summit?
Pakistan is scheduled to host the SCO Council of Heads of State summit in 2027. It previously hosted a Council of Heads of Government meeting in October 2024.
