In an era where regional integration defines economic strength, Pakistan finds itself at a crossroads within the Economic Cooperation Organization (ECO). Since its inception, Pakistan has played a pivotal role in the ECO’s framework, engaging in trade agreements, developing transport infrastructure, and forming energy partnerships. However, despite its strategic geographic position and significant contributions, the country has yet to reap the full benefits of this regional bloc. The question is whether Pakistan can transform its historical engagement with the ECO into a viable pathway for sustainable economic growth.
Pakistan was among the founding members when the ECO was established in 1985 as a successor to the Regional Cooperation for Development (RCD). It later expanded in 1992, incorporating Afghanistan and several Central Asian states, forming a 10-member bloc that spans over 8 million square kilometers and has a population of nearly 500 million. The primary aim of this organization is to enhance economic collaboration, boost regional trade, and integrate its members into global markets. Pakistan has actively contributed to ECO’s initiatives, from trade facilitation to infrastructure projects. Nevertheless, trade within ECO remains minimal, accounting for only 3 percent of Pakistan’s total foreign trade, which highlights the need to reassess the country’s approach to regional economic diplomacy.
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Over the years, Pakistan has signed multiple trade agreements with ECO members, including Preferential Trade Agreements with Azerbaijan, Uzbekistan, and Iran. Furthermore, it has entered into Free Trade Agreements with Turkey and other nations to improve intra-regional trade. Despite these measures, obstacles such as trade barriers, complicated customs procedures, and infrastructural limitations continue to hinder Pakistan’s ability to maximize the benefits of these agreements. Moreover, the ECO Trade Agreement, which could significantly enhance trade among member states, remains stalled due to a lack of political will. To address these challenges, Pakistan must advocate for tariff reductions and streamlined cross-border trade regulations, ensuring a more integrated regional economy.
Pakistan has played a central role in developing regional transport corridors under the ECO framework. The Islamabad-Tehran-Istanbul railway and road projects stand as evidence of Pakistan’s commitment to regional connectivity. Additionally, the country has signed the ECO Transit Transport Framework Agreement. It is part of the Ashgabat Agreement, which aims to establish efficient transport routes between South Asia, Central Asia, and the Middle East. However, these projects remain underutilized due to security concerns, political instability, and bureaucratic inefficiencies. If Pakistan is to benefit from these trade routes fully, it must proactively ensure their security and expedite customs clearance processes.
Energy security remains one of Pakistan’s most pressing concerns, and ECO offers an opportunity for collaboration in this sector. Pakistan has been involved in key energy projects, including the Iran-Pakistan gas pipeline and the Turkmenistan-Afghanistan-Pakistan-India pipeline. While both projects promise to meet the country’s growing energy demands, political tensions and international sanctions have delayed progress. Pakistan must, therefore, actively engage with ECO members to explore alternative energy solutions, such as renewable energy partnerships and electricity-sharing mechanisms. Expanding energy cooperation within ECO can significantly reduce reliance on expensive fossil fuel imports while strengthening industrial output.
Pakistan, one of the most climate-vulnerable nations, has used ECO to highlight the need for collective action on environmental issues. The country’s advocacy for a Loss and Damage Fund at COP27 and its accession to the Istanbul Declaration on Climate Change reflect its commitment to regional sustainability. However, ECO’s role in climate action remains limited. Pakistan should push for a dedicated ECO Climate Fund to support green energy projects, afforestation drives, and climate-resilient infrastructure in member states. By spearheading such initiatives, Pakistan can position itself as a leader in regional environmental cooperation.
While Pakistan’s historical contributions to ECO are commendable, the future demands a more strategic and result-oriented approach. Pakistan must adopt a more aggressive trade policy to expand its influence within the ECO. By leveraging its strategic location, the country can serve as a transit hub for landlocked Central Asian nations, providing them access to global markets via the Arabian Sea. Moreover, strengthening diplomatic ties with key ECO members will boost trade and enhance regional geopolitical stability. Additionally, Pakistan should push for greater economic cooperation under the Islamabad Declaration and the ECO Vision 2025, which emphasize sustainable development, trade facilitation, and regional connectivity.
The China-Pakistan Economic Corridor offers an opportunity to integrate ECO members into a broader trade network. Gwadar Port, a key component of this corridor, has the potential to serve as a gateway for economic development in Central Asia. Pakistan should work towards aligning CPEC’s infrastructure with ECO’s transport corridors, facilitating smoother trade flows and increased investment opportunities. Such integration would boost Pakistan’s economy and solidify its role as a regional trade hub.
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Despite its rich historical and cultural heritage, Pakistan remains underrepresented in regional tourism. In contrast, Turkey has successfully leveraged its tourism industry to drive economic growth. Pakistan can follow suit by promoting religious and cultural tourism within ECO. Establishing regional tourism agreements, easing visa restrictions, and investing in hospitality infrastructure can attract travelers from Iran, Turkey, and Central Asia. Furthermore, the potential for religious tourism, particularly for Buddhist, Sikh, and Islamic heritage sites, remains untapped and should be a key focus in Pakistan’s tourism strategy.
Pakistan’s engagement with ECO has been longstanding, yet the returns on its contributions remain far from optimal. To truly benefit from regional integration, the country must shift from passive participation to active leadership within the ECO framework. By aggressively pursuing trade liberalization, enhancing regional connectivity, fostering energy cooperation, and promoting tourism, Pakistan can strengthen its economic foundation and play a transformative role in shaping the future of ECO. The road ahead demands bold reforms and strategic diplomacy; however, if navigated wisely, Pakistan can emerge as a central pillar in the region's economic resurgence. The time for hesitation is over. Pakistan must seize the opportunities within ECO and chart a new course towards prosperity and regional dominance. If it can be achieved, the vision of economic integration will not remain an unfulfilled promise but a reality that drives the nation towards sustainable growth and progress.
