NLC- ANOTHER MILESTONE ACHIEVED FOR REGIONAL CONNECTIVITY 

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By: Maria Mansab

Another noteworthy accomplishment was achieved by the National Logistics Company (NLC) with the successful transportation of the export cargo to Kyrgyzstan via China utilizing the TIR system. This achievement not only signifies a substantial leap in effective cargo delivery but also marks the establishment of a new land-based trade route that links Pakistan not only with Central Asian countries but also strengthens relations with Russia and Eastern Europe.

The establishment of TIR in tandem with CPEC holds the potential to establish a trade channel that is both more secure and reliable, thereby promoting economic resilience in Pakistan. By capitalizing on this endeavor, an estimated one thousand vehicles per day contribute to the reduction of trade expenses by $2.5 million.

Previously, NLC transported TIR cargo from Pakistan to Kazakhstan via China and Kyrgyzstan, and two NLC trucks carrying mango juice, household appliances, and other items were also sent to Kazakhstan, thereby showcasing the feasibility of this emerging trade pathway. This accomplishment demonstrates Pakistan’s proficiency in managing complex logistics and its ability to operate on a global scale.

The successful completion of this pathway establishes a foundation for the augmentation of Pakistan’s international trade endeavors, establishes the country as a crucial hub for regional and global trade, and encourages active engagement and membership in the international trade community.

Pakistan is currently involved in the creation of a specialized transit corridor that will link Pakistan, China, and CARs. This initiative has substantial strategic and economic advantages for both Pakistan and the entire region. Pakistan’s export of the cargo to Kyrgyzstan represents its strategic and economic trajectory.

These milestone achievements have led to a rise in trade among Pakistan, Kyrgyzstan, and other states in Central Asia, which will ultimately stimulate economic activity and generate employment opportunities. It offers landlocked Central Asian nations a vital alternative pathway to reach worldwide markets, promoting regional economic cooperation. The initiatives enhance Pakistan’s role as a prominent participant in regional trade and reinforce its strategic alliances with China and countries in Central Asia.

Additionally, the year-round accessibility of the Khunjerab Pass, made possible by the efforts of the NLC and the Pakistani government, eliminates a significant barrier to trade between Pakistan and China. This development highlights Pakistan’s contribution to enhancing regional economic connections.

Significantly, the establishment of a transit trade route will not only facilitate the expansion of trade relations between Pakistan and the CARs but will also foster greater economic collaboration between China and the CARs. Pakistan aspires to leverage the Silk Route’s strategic location to access unexplored markets in Central Asia, thereby creating fresh avenues for exporting and fostering economic growth in the area.

Historically, Pakistan has predominantly focused on exporting to the European Union (EU), the Middle East, and the United States. However, the Central Asian states present a substantial unexplored market that warrants attention for Pakistani goods. Notably, trade between Pakistan and CARs increased in the initial quarter of the present fiscal year (2023–24) in comparison to the corresponding period of the previous year (2022– 23), thereby contributing to the consolidation of regional integration.

Moreover, the frequent occurrence of border closures with Afghanistan has emphasized the significance of this transit route for Pakistan. There was a prevailing fallacy that Afghanistan functioned as a conduit to central Asian nations for Pakistan. Pakistan has successfully circumvented the geographical challenge of Afghanistan being landlocked and has established a connection between Central Asia, CPEC, and Gwadar.

This achievement is particularly noteworthy considering the geopolitical complexities and ongoing concerns, such as Afghanistan’s position on the TTP, which could have implications for regional dynamics including Pakistan and China.

The escalating onslaughts perpetrated by the TTP within Pakistan, as well as India’s complicity in supporting terrorism against Pakistan in Afghanistan to destabilize the country, are clear indications of efforts to undermine Pakistan’s regional and global standing. However, Pakistan has effectively thwarted these strategies and has emerged as a prosperous and peaceful nation by establishing a land-based trade route. The economic trajectory of Pakistan is evidenced by the affirmations made by the International Monetary Fund (IMF), World Bank (WB), and Fitch rating agencies, which have classified Pakistan as CCC+.

Pakistan’s progress towards achieving sustainable development is increasingly apparent, garnering global acclaim and establishing the foundation for a prosperous future. The government’s resolute dedication to addressing illicit activities, namely in the Afghan transit sector, has not only enhanced national security but also resulted in substantial transformations in the economic landscape. However, effective anti-smuggling measures have successfully revived the economy, resulting in a decrease in the value of the dollar from Rs315 to Rs276, indicating economic stabilization.

It is imperative to note that SIFC has emerged as a powerful catalyst, specifically designed to bolster investor confidence and expedite the execution of vital projects. Furthermore, SIFC plays a crucial role in luring investors to Pakistan. The SIFC has introduced a visa service that is favorable to both businesses and investors. This service aims to assist international entrepreneurs who wish to establish their operations in the country by making financial investments. Additionally, it aims to create opportunities for digital transformation.

Pakistan’s achievements in trade and economic development underscore its commitment to a prosperous and stable future. The strategic initiatives and partnerships outlined above position Pakistan as a key player in regional and global trade, fostering economic growth and international collaboration.

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