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ISLAMABAD, Sep 03 (APP):The revival of the Silk Route’s legacy is significant for increasing Pakistan’s and Central Asian Republics’ (CARs) transit trade and bilateral economic ties, as well as for enhancing economic and trade relations with CARs.
Strengthening transit trade and infrastructure could revive the Silk Road legacy and promote economic integration based on shared cultural, historical, and religious affinities.
Pakistan and Central Asia transit trade is a significant opportunity with great potential, though it faces challenges primarily related to infrastructure, security, and regulatory hurdles.
On the significance of economic trade relations and route Importance, Pakistan serves as a critical transit hub linking Central Asian Republics (CARs) like Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan to global markets via the Arabian Sea.
In trade with CARs, the key trade commodities include textiles, cotton, oil, gas, and agricultural products, which dominate.
The Pakistani route through Afghanistan is considered most viable due to shorter distances and lower transit costs, but it suffers from security and political uncertainties in Afghanistan.
The China-Pakistan Economic Corridor (CPEC) provides an alternative by connecting Central Asia through China via the Karakoram Highway, linking Pakistani ports to Kashgar and further to Central Asia under the Quadrilateral Traffic in Transit Agreement (QTTA) between Pakistan, China, Kazakhstan, and Kyrgyzstan.
Pakistan and Uzbekistan have signed transit agreements and initiated projects to enhance connectivity, including cargo and passenger train services.
Transit through Afghanistan is complex due to political instability, security issues, and bureaucratic delays at border customs points, which discourage traders.
Trade volumes remain below potential despite agreements like APTTA (Afghanistan-Pakistan Transit Trade Agreement) and QTTA, largely due to soft infrastructure issues such as regulatory bottlenecks.
Pakistan’s exports to Central Asia have declined recently, while imports from these countries have surged, resulting in trade imbalances.
For enhancing bilateral trade ties, Visa processing and ease of movement for traders and drivers also require improvement.
Pakistan’s strategic location and CPEC investments position it as a potential regional trade hub, offering Central Asia access to seaports and large South Asian markets.
Pakistan’s need to enhance regional cooperation could boost Pakistan’s GDP by up to 1.8 % and create millions of jobs.
Pakistan-Central Asia transit trade holds substantial growth potential, especially facilitated by Pakistani routes and CPEC infrastructure, but requires resolving political, security, and logistical challenges to fully capitalize on mutual benefits and regional connectivity.
Meanwhile, talking to APP, President Islamabad Chamber of Commerce and Industry, Nasir Mansoor Quraishi, said regional trade is key for Pakistan’s economic sustainability, and transit trade needs to be enhanced with the Central Asian States.
He said that there is a need to increase the transit trade with CARS, for achieving the trade potential with regional potential, and said that the Pharmaceutical, agriculture, and tourism sectors have huge potential for increasing bilateral economic ties.