Economic Cooperation Organization Logo

ECO (Economic Cooperation Organization) was formerly called RCD (Regional Cooperation for Development).  RCD (an inter-state regional organization) was established in 1964 by Pakistan, Iran, and Turkey with the basic aim to promote cooperation among member states for development and sustainable economic growth.  RCD remained active till the Islamic revolution of Iran (1979) and after that, it was dissolved. The treaty of Izmir which was to be the legal framework for the former organization soon turned out to be the main charter for ECO and served as a transition agreement from RCD to ECO.

The disintegration of USSR (Union of Soviet Socialist Republics) brought about a new change in the region with the independence of new states in Central Asia. These Central Asian states having a close cultural affinity with the founding members of ECO wanted to join this organization. Thus on 28^th May 1992; Kazakhstan, Uzbekistan, Kyrgyzstan, Azerbaijan, Tajikistan, and Turkmenistan alongside with Afghanistan became formal members of this organization after giving accession to the treaty of Izmir.

ECO was established with some basic policy goals that include enhancement of trade and commerce, people to people contact between among member states via Rail, road and air and effective use of vast sources of energy that exist in this region for boosting economic development in member states and in the entire region.

The hierarchical structure of ECO consists of Council of Ministers, Council of permanent representatives, Regional planning council and General Secretariat. Council of Ministers is the leading body of ECO whereas others are below in hierarchy. Council of permanent representatives consists of permanent members from the member states and General Secretariat consists of sub-secretariats. ECO members have built many institutions and agencies to further enhance economic cooperation. These institutions include ECO chamber of commerce and industry, ECO reinsurance company, ECO cultural institute, ECO Consultancy and Engineering company and last but not the least, ECO trade and development bank.

Pakistan, Iran, and Turkey are the largest and equal contributors to the funds of the organization and thus have dominating influence in the organization.

ECO has certainly great potential in furthering economic interests of the whole region and Pakistan can play a vital role in this development. PTA ( Preferential trade agreement) was signed between member states in the 90s which provided a base for economic relations among member states, Pakistan is one of the Military superpowers and emerging economy of Islamic World is vital to the success of ECO. Furthermore, the region was declared “Free trade area” in a summit in 2005 which was attended by the head of the states of all the members of ECO. Moreover, Gwadar and Chahbahar port can prove to be vital for furthering trade and economic cooperation in this region because Afghanistan and six Central Asian states are mostly landlocked countries that need ports for exporting their natural resources and especially Oil to the outside world.

Pakistan and Turkey are already connected through a Railway track which passes through Iran. Pakistan can allow transit of goods from Iran and Afghanistan to India and others if this organization becomes fully functional in terms of regional integration. This organization can become "Europe Union" for Asia if member states continue working on bringing the region together for the better future of upcoming generations.