China first proposed establishing an SCO Development Fund, and all member states later approved China's proposal during multilateral discussions. Various ideas for the Fund are being explored, but there is no unity on the issue. One particular issue is whether the Fund should operate as a non-governmental organization, which therefore, according to the legislation of some of the member states, could not receive funds from government budgets. At the SCO Summit in June 2004 in Tashkent, SCO prime ministers approved the idea of establishing the Fund, and charged the Secretariat with drafting corresponding documents.
In September 2006, at a meeting of SCO ministers responsible for foreign economic activities in Moscow, the SCO Secretariat was charged with creating an expert working group to draft proposals outlining the principles for creating and administering the SCO Development Fund.
Serious differences concerning the formation of the Fund led to the acceptance of a Russian proposal to launch operations in two separate areas: the Development Fund and the creation of a "bank pool". The "bank pool" would later grow into the SCO Interbank Association, which was established in 2006.
In recent meetings, experts have come to the conclusion that one way to ensure joint financing for SCO programmes and projects is to open a special account for specific programmes and projects that have been confirmed by the governing bodies of the SCO. The account could draw funds from voluntary payments by member states, from payments by organisations participating in a given project, including private companies as well as government and non-government organisations, and finally, from resources controlled by other funds, public organizations, and investors interested in the implementation of the projects. Grants from international organisations and the states that are not SCO members are also allowed.
Coordination of a concept for special SCO account is currently in progress.