BUILDING REGIONAL CONNECTIVITY VIA TRANSIT TRADE BETWEEN PAKISTAN, CHINA AND CARS

By: Maria Mansab
In a significant milestone for trade relations, Pakistan has successfully transported its first export cargo from Pakistan to Kyrgyzstan via China under the UN-mandated Transport Internationaux Routier (TIR) system. This development demonstrates NLC’s commitment to improving regional connectivity. It is worth noting that the NLC trucks carrying pharmaceuticals that arrived in Bishkek would transport a load of various other things from Kyrgyzstan to Pakistan on their way back to Pakistan. The NLC’s pioneering transportation endeavors have now paved the way for land-based trade not only with Kyrgyzstan and other landlocked Central Asian Republics (CARs) but also with Russia and East Europe.
Notably, to commemorate the start of land-based trade, a welcome ceremony was conducted at Bishkek Customs Port, which was attended by Kyrgyz officials and Pakistan’s Ambassador. The Kyrgyz Minister shows confidence in commercial trade and plans a convoy to Pakistan. Ambassador Zaigham applauds the NLC initiative, emphasizing Kyrgyzstan’s access to Pakistan’s seaports. The Deputy Chairman of Kyrgyz Customs welcomes the NLC consignment and pledges collaboration for bilateral trade promotion. This is not the first time Pakistan has taken this approach. Previously, two NLC trucks loaded with mango juice, household appliances, and several other things were transported from Pakistan to Kazakhstan via Kyrgyzstan. This accomplishment was the outcome of the Quadrilateral Traffic in Transit Agreement (QTTA) signed by Pakistan, China, Kyrgyzstan, and Kazakhstan.
The NLC has now established a link between Pakistan and CARs via China; this is a significant development that will facilitate trade with central Asian states and link them to the CPEC, thereby enhancing the potential of the Gwadar port. By utilizing TIR, an international customs facilitation system that substantially improves trade security and efficiency, drivers and cargo are not required to spend days at borders, where they would be required to unload and reload products from one truck to another, thereby delaying operations. By leveraging Karachi’s port, Kyrgyz companies can gain entry to Pakistani and international seaports by transporting products along this route. This transit route offers a lot of promise because it is expected to significantly cut trade time and costs not just between Pakistan and Kyrgyzstan but also between Pakistan and other Central Asian countries. NLC and Pakistan Customs played pivotal roles in making this transit trade a
reality, demonstrating their unwavering commitment to facilitating and developing trade. It not only demonstrates Pakistan’s commitment to regional connectivity and economic growth but also highlights the potential for the Pakistan-China land border at Sost, Khunjerab, to be transformed into an international hub for cross-border and transit trade. This development has enormous opportunities for economic growth and regional connections.
The transit trade route will not only expand trade links between Pakistan and the CARs but will also boost economic cooperation between China and the CARs. Pakistan hopes to tap into the untapped potential of Central Asian markets with the Silk Route’s strategic location, opening up new channels for exports and economic development in the region. Pakistan has traditionally relied on export markets in the Middle East, the United States, and the European Union (EU), but Central Asian states represent a sizable untapped market for Pakistani products. It is imperative to mention here that, the trade between Pakistan and CARs grew in the first quarter of the current fiscal year (2023–24) compared to the same period last year (2022–23), which would further deepen regional integration.
Central Asian economies are unexplored, and if Pakistan taps into and grows its export market, it may be the start of diversifying its export markets. Furthermore, linking with Central Asia allows access to European and Eurasian Economic Union countries. This land-based transit trade route not only facilitates trade between China, Pakistan, and CARs but also opens avenues for energy cooperation and provides landlocked countries with direct sea access. This land-based transit trade route allows transit traffic and trade between China, Pakistan, and the CARS. Furthermore, the China-Pakistan Economic Corridor (CPEC) provides a good communication route between Central Asia and the Arabian Sea port of Gwadar. This route has become more profitable since the establishment of the Gwadar Port in the Balochistan region, particularly for Kyrgyzstan and Kazakhstan.
Furthermore, the recurrent frequency of border closures with Afghanistan has highlighted the importance of this transit route for Pakistan. There was a common misconception that Afghanistan served as a gateway to central Asian states for Pakistan. Pakistan has effectively bypassed landlocked Afghanistan and connected Central Asia with CPEC and Gwadar via China. This accomplishment is especially significant given geopolitical complications and current issues, such as Afghanistan’s stance on the Tehreek-e-Taliban Pakistan (TTP), which has possible ramifications for regional dynamics, including Pakistan and China.