CSS 2024 Solved Current Affairs Past Paper | Role and Prospects of ECO for Pakistan
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Question Breakdown
This question has two parts. The first part requires elaboration on Pakistan’s historic role in the Economic Cooperation Organization (ECO), and the second part requires evaluating the future prospects of ECO in terms of regional integration.
Outline
1-Introduction
2-Economic Cooperation Organization (ECO): An overview
- 2.1-Elucidating Pakistan’s historic role in ECO
- ✓Free trade and Transit Trade agreements to boost regional economic integration
- ✓Construction of transport infrastructure for enhanced connectivity
- ✓Development of the energy sector through bilateral and multilateral projects
- ✓Emphasizing changing climate trends and appealing for a collective response from ECO members to mitigate climate vulnerabilities
- 2.2-Highlighting future prospects of ECO for Pakistan in the realm of regional integration
- ✓Strengthening diplomatic relations with ECO members via enhanced trade agreements and economic activities
- ✓Collaborating in regional energy projects under the ECO framework to address Pakistan’s energy requirements to boost industrialization
- ✓Acknowledging the role of CPEC and Gwadar Port for the ECO region by linking it with world trade networks
- ✓Transforming the tourism sector of Pakistan to foster regional tourism, cross-cultural exchanges, and social cohesion
3-Conclusion
Answer to the Question
Introduction
The emergence of regionalism in the global arena as an aftermath of WW II has greatly morphed the relationships among states by fostering economic cooperation, socio-cultural connectivity, and regional integration. Among various regional organizations surfacing at the Eurasian block, the Economic Cooperation Organization (ECO) was established in 1985 by three founding members, Iran, Pakistan, and Turkiye, to promote economic, cultural, and technological cooperation. Moreover, ECO stretched its circumference in 1992 by including seven new members: Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Indeed, due to its leveraging geo-strategic location and abundant natural resources, ECO could become a powerful engine to boost economic growth in member states. As a founding member, Pakistan has played a pivotal role in ECO by signing free trade agreements with Afghanistan and Turkiye such as Afghanistan Pakistan Trade Transit Agreement (APTTA) corridor, constructing transport infrastructure in the form of Islamabad-Tehran-Istanbul (ITI) road corridor and Islamabad-Tehran-Istanbul (ITI) rail corridor; and developing energy infrastructure through bilateral and multilateral projects such as Turkmenistan-Afghanistan Pakistan-India (TAPI) gas pipeline projects. Likewise, the intrinsic aspects of the ‘Islamabad Declaration’ adopted in the 13th ECO Summit align with ‘ECO Vision 2025’ with core principles of sustainability, integration, and a conducive environment in areas of intra-regional trade, transport and communication, energy, tourism, economic growth and productivity, environment, and social welfare. In addition, CPEC and Gwadar Port set the stage for Pakistan to turn into a transit hub and ‘Global gateway to Central Asia’, widening opportunities for economic cooperation and integration among member countries of ECO. Thus, Pakistan needs to revamp existing policies and focus on dynamic pathways to collaborate with member states to revive ECO and amplify its due share in international trade.
‘Let’s make ECO the organization not just of words but action, not just of commitments but implementation.’
Caretaker Prime Minister Anwaar-ul-Haq Kakar, 16th ECO Summit, Tashkent
Economic Cooperation Organization (ECO): An overview
Economic Cooperation Organization (ECO) is an intergovernmental regional organization that promotes sustainable economic and technological development among member states and increases inter-regional and intra-regional trade volumes through enhanced connectivity. Its genesis dates back to 1964 when Pakistan, Iran, and Turkiye jointly established a collaborative organization, Regional Cooperation for Development (RCD), with headquarters in Tehran until 1979. Furthermore, as an aftermath of the Iranian Revolution and the collapse of the Soviet Union, it was renamed ECO in 1985, became fully operational in 1991, and crafted its core objectives through the Treaty of Izmir in 1996. Presently, it consists of ten Central and West Asian Countries: Pakistan, Iran, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, and Turkiye. Additionally, ECO member states cover a population of about 500 million in an area of 8 million square km. Moreover, the region finds its importance due to the abundance of natural resources, unparalleled geo-strategic location, and richness in culture and heritage. Through the years, ECO has initiated various projects in the fields of trade, tourism, energy, and social development under the umbrella of connectivity and regional integration. Thus, the global ECO trade volumes and intra-regional trade have gradually increased as per statistics of ECO given in the following table:
| Years | Global ECO Trade (US $) | Intra-regional Trade (US &) |
| 2015 | 648 billion | 58 billion (9%) |
| 2022 | 1035 billion | 85.6 billion (8.2%) |
A- Elucidating Pakistan’s historic role in ECO
Pakistan has remained a fundamental participant in multidimensional initiatives supported by ECO in the spheres of communication, transport, trade, and energy. Over the years, the country has acknowledged ECO’s critical position in the region and actively contributed to ECO Summits and ECO Meetings of the Council of Ministers (COM).
- Free trade and Transit Trade agreements to boost regional economic integration
The economic factors that lay a solid foundation for amplifying regional economic integration for any organization include free trade agreements, preferential trade agreements, cross-border capital flows, common markets, and reduced tariff and non-tariff barriers. Keeping in view, Pakistan has signed multiple transit trade, free trade, and preferential trade agreements with member states of ECO as per the Ministry of Commerce as shown below:
| Trade Agreements | ECO Member States |
| Preferential Trade Agreement (PTA) | Azerbaijan, Uzbekistan, Iran |
| Transit Trade Agreement (TTA) | Azerbaijan, Tajikistan, Afghanistan |
| Free Trade Agreement (FTA) | Turkiye |
Moreover, ECO’s intra-regional trade stands at $76.5 billion, or 8.2% of the overall external trade of ECO Member States. However, Pakistan’s share in ECO trade accounts for only 3% of its total foreign trade, which reflects the disparity in current trade volumes and the scope for expanding intra-regional trade depending upon the size of the population and share of natural resources in the region.
- Construction of transport infrastructure for enhanced connectivity
The role of well-designed transport infrastructure in flourishing trade in any region is undeniable as it provides essential mobility, facilitation in cross-border trade, and interconnectedness of businesses to worldwide networks. Likewise, Pakistan, on recognizing the need for trade routes for transportation and communication, adopted the Quetta Plan of Action in 1993 under the framework of the Treaty of Izmir. Additionally, the country became a signatory to the ECO Transit Transport Framework Agreement (TTFA) initiated in May 2006, which sought to foster a corridor-based transit and transport connectivity approach. Furthermore, it aims to curb cross-border ill-legal trafficking of goods within a region, reduce non-physical barriers, and accelerate transport services through harmonization and modernization. Similarly, the list of constructed transport infrastructure extends to the form of the Islamabad-Tehran-Istanbul (ITI) road corridor and the Islamabad-Tehran-Istanbul (ITI) rail corridor. Moreover, Pakistan joined the Ashgabat Agreement in 2016, including Uzbekistan, Kazakhstan, Turkmenistan, Oman, Iran, and India, which is a multi-model international transit and transport corridor specifically designed to facilitate the transportation of goods between Central Asia and the Persian Gulf. Hence, Pakistan has always contributed to ECO initiatives to establish connectivity in businesses, tourism, and economic and cultural exchanges.
- Development of the energy sector through bilateral and multilateral projects
Besides constructing trade routes and transport infrastructure for regional connectivity, Pakistan has remained an integral participant in developing the energy sector through bilateral and multilateral projects within the umbrella of ECO. Whether the TAPI or IP gas pipeline project, Pakistan stood on the frontline for association in joint ventures. About TAPI, a trans-country gas pipeline project of four countries – Turkmenistan, Afghanistan, Pakistan, and India – initiated in 1991 to provide 33 billion cubic meters of Turkmenistan’s natural gas to three countries annually in an even share of 42% each for Pakistan and India and 16% for Afghanistan. Although the project has various benefits for contributing states, it has not become operational even after three decades due to standing geopolitical constraints. IP, also termed the Peace Pipeline, is a gas pipeline initially estimated to be about 785km long to import 750 million cubic feet of Iranian gas to Pakistan daily, with the signing of a preliminary agreement in 1995. Nonetheless, the project was halted due to different geopolitical dynamics, with a section of 80km remaining undeveloped by Pakistan; the debate about resuming the IP gas pipeline project has sparked in recent times. Hence, it shows that Pakistan has prioritized the mutual interest of all states for regional integration in the realm of the energy sector as well.
- Emphasizing changing climate trends and appealing for a collective response from ECO members to mitigate climate vulnerabilities
The menace of climate change has continuously threatened the ECO region through frequent floods, torrential rains, land erosion, water shortages, droughts, and sand storms. Unfortunately, Pakistan is among the most vulnerable countries in the region to the impacts of climate change, with less than 0.8% of the global carbon footprint. It is evident from the devastating floods of 2022, which affected 33 million people and submerged one-third of the country. In response, Pakistan multiplied its efforts to expand its message of ‘climate justice’ through the ECO platform and asked for a collective response to address climate risks. Similarly, during the 26th ECO Council of Ministers (COM) meeting held at Tashkent, the Pakistan delegation called for establishing a ‘Loss and Damage Fund’ at the UN Climate Change Conference (COP27). It highlighted the gravity of enhanced cooperation among ECO member states for adaptation and mitigation measures against climate catastrophes. Previously, Pakistan acceded to the ‘Istanbul Declaration on Climate Change and Green Economy in the Context of Sustainable Development’ adopted in the 5th ECO Ministerial Meeting on Environment in 2014. Hence, Pakistan has become vocal about the changing climate patterns, their outcomes at the ECO platform, and the need for collaborative efforts in the following strata to adapt to climate change effectively.
B- Highlighting future prospects of ECO for Pakistan in the realm of regional integration
Despite Pakistan’s historic role in ECO, there is still room for regional integration in multifaceted domains, as discussed further.
- Strengthening diplomatic relations with ECO members via enhanced trade agreements and economic activities
Under the ECO framework, Pakistan could strengthen its diplomatic relations among member states by widening the export base, reducing trade barriers, and pursuing economic reforms. Moreover, Pakistan has a diverse manufacturing base in textiles, agriculture, and technology, offering regional players a lucrative marketplace with cheap labour and access to regional markets. Fundamentally, Pakistan provides CARs with natural routes to the sea and South Asian markets, widening the gateway for trade liberalization and maximization of economic efficiency. Keeping this in view, Pakistan adopted the ‘Islamabad Declaration’ at the 13th ECO Summit, whose intrinsic aspects align with ‘ECO Vision 2025’ with core principles of sustainability, integration, and a conducive environment in areas of intra-regional trade, transport and communication, energy, tourism, economic growth and productivity, environment, and social welfare. Crucially, Pakistan must formulate dynamic economic policies and introduce economic reforms while considering international trends. Hence, multilateral collaborations among ECO members would accelerate regional connectivity through enhanced business and commercial activities, people-to-people interaction, and tourism.
- Collaborating in regional energy projects under the ECO framework to address Pakistan’s energy requirements to boost industrialization
Another significant space for Pakistan to collaborate among ECO members is to engage in regional energy projects, as the ECO region has immense potential for untapped energy resources. Significantly, CARs pose total reserves of around 150 billion barrels of crude oil and 1234 trillion cubic feet of natural gas. Furthermore, oil and gas-rich countries in the ECO region include Kazakhstan, Azerbaijan, Iran, Turkmenistan, and Uzbekistan. Owing to these circumstances, Pakistan finds ample opportunities to engage in the development and infrastructure of regional energy projects. In addition, Pakistan’s energy sector has a growing demand for uninterrupted supply with a focus on sustainable, reliable, and renewable energy sources. Consequently, the country could materialize its energy demands by collaborating with regional players to invest in its power generation, transmission, and distribution systems. Moreover, Pakistan could boost its industrial sector, particularly the textile industry, which has been slowed down in the past decade due to multiple hindrances. Currently, the country has been actively engaged with ECO to ensure the implementation of CAREC Energy Strategy 2030, which provides a new long-term strategic framework for the energy sector of Central Asia. Thus, Pakistan needs combined efforts from all stakeholders to channel ways and means for involvement in regional energy projects and agreements.
- Acknowledging the role of CPEC and Gwadar Port for the ECO region by linking it with world trade networks
The Chinese Belt and Road Initiative (BRI) have created immense opportunities with longstanding benefits for the ECO members by linking with worldwide trade networks. Chiefly, the China-Pakistan Economic Corridor (CPEC) has been crafted to uplift the economic standing of the entire Central Asian Region. Furthermore, CPEC encompasses development and infrastructure in transport, communication, energy, telecommunication, and tourism sectors that would catalyse the ECO region regarding connectivity, trade, and people-to-people interaction. Significantly, Gwadar Port holds economic and strategic importance as it acts as an international trade hub for Pakistan and provides a crucial trade route to land-locked CARs. Referring to its prime location in the Arabian Sea near the Straits of Hormuz, the Gulf of Oman, and at the junction of South Asia, Middle East, and Central Asia, the port has the potential to function as a transhipment harbour and attract traffic from CARs, Afghanistan, and western countries. Hence, Pakistan needs to galvanize its efforts to benefit from the game-changer project and turn ECO’s vision of intra-regional trade, socio-economic development, and regional prosperity into reality.
- Transforming the tourism sector of Pakistan to foster regional tourism, cross-cultural exchanges, and social cohesion
Besides rewarding enormous economic gains, developing a country’s tourism industry promises cultural preservation, socio-ethnic linkages, and infrastructure development. Undeniably, Pakistan has been bestowed with various attractive landscapes, appealing geographical locations, profound heritage, and dynamic cultures, making it a popular tourist destination. It is evident from the fact that Pakistan has ranked 101st in the World Economic Forum (WEF) Travel & Tourism Development Index 2024. Despite its potential, the country has been grappling with multiple issues regarding expanding the tourism industry and making it a profitable source of revenue generation. Therefore, transforming the tourism sector of Pakistan under the ECO platform would favour fostering regional tourism, cross-cultural exchanges, and social cohesion among the member states. Turkiye sets an example among ECO member states by becoming the best travel and tourism destination, ranking 29th among 119 countries in the World Tourism Index 2024. Likewise, ‘ECO Vision 2025’ also prioritizes tourism as one of the cooperation areas for the ECO region. Hence, Pakistan needs to modify its tourism sector under the ECO umbrella to boost people-to-people interaction, cultural exchanges, and harmony among areas. Thus, all stakeholders must join hands to move in the right direction for Pakistan’s more sustainable, resilient, and inclusive tourism development.
Conclusion
To cap it all, the Economic Cooperation Organization (ECO) has a distinctive position in regional organizations depending upon the region’s resource richness, trade opportunities, and geo-strategic location. The intergovernmental organization of three Asian and seven Eurasian countries has the core objectives of enhancing economic cooperation, communication, tourism, and regional integration among member states. Moreover, Pakistan, one of the founding members of ECO, has played a crucial role in ECO by cooperating in multiple areas, such as signing free trade and transit-trade agreements with member states, constructing transport infrastructure for expanding trade, and developing the energy sector by adopting bilateral and multilateral regional energy projects. However, specific prospects could evolve the role of Pakistan in ECO under the framework of regional economic integration. Driven by its geostrategic location, infrastructure development, and economic reforms, Pakistan could strengthen its diplomatic ties with ECO members by enhancing trade partnerships, collaborating in regional energy projects to meet its energy requirements, and fully utilizing the potential of CPEC and Gwadar Port. To conclude, Pakistan recognizes the significance of the ECO region and economic cooperation. Still, there is a dire need for policy reforms to materialize the goals of ECO and amplify the country’s due share in regional economic integration.
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