Speakers call for deeper integration to unlock full economic potential of CAREC region

ISLAMABAD, May 29 (APP): Speakers at the fifth annual two-day CAREC Institute Research Conference on Thursday voiced a unified message that connectivity was no longer just about infrastructure but the cornerstone of productivity, resilience and shared prosperity.
From digital trade platforms to harmonized customs and economic corridors, they emphasized the urgent need to deepen regional integration to unlock the full economic potential of the CAREC region.
The two-day CAREC Institute Research Conference titled Themed “CAREC Connectivity: Promoting Trade and Trade Facilitation,” commenced here in collaboration with the University of Sargodha (UOS), brought together a diverse group of national and international stakeholders.
Co-organizers of the event included the Islamic Development Bank (IsDB), Pakistan Single Window (PSW), Allama Iqbal Open University (AIOU), International Road Transport Union (IRU), Development Alternatives, Inc. (DAI), Sustainable Development Policy Institute (SDPI), Pakistan International Freight Forwarders Association (PIFFA), and the ECO Science Foundation (ECOSF).
Addressing the participants, Director of the CAREC Institute Charymuhammet Shallyyev emphasized that productivity was central to long-term economic success.
He said productivity thrived in environments where barriers to the movement of people, goods, ideas and capital were minimized, underscoring connectivity as a critical driver rather than a mere enabler of economic growth.
Shallyyev highlighted that connectivity extended far beyond physical infrastructure as it encompassed a broad ecosystem including economic corridors, logistics chains, harmonized customs procedures, digital platforms, and institutional cooperation, all vital for facilitating cross-border commerce.
Drawing on the example of East and Southeast Asia, particularly China, he illustrated how strategic investments in infrastructure and trade policy have fueled rapid development and poverty reduction.
Despite its strategic location and rich resources, he said, the CAREC region remained insufficiently connected, both internally and with global markets.
To reverse this trend, he urged enhanced efforts in trade facilitation, policy harmonization, and infrastructure modernization.
He stressed the importance of multilateralism and collective action, particularly in a world challenged by geopolitical and environmental uncertainties.
The CAREC Institute, he said, remained committed to providing knowledge, tools and partnerships to turn this shared vision into actionable progress.
Syed Shahkeel Shah from the Prime Minister’s Office , former Director of the CAREC Institute , warned that recent geo-economic disruptions, including the use of unilateral tariffs by major economies, have undermined the multilateral trading system.
He stressed that developing countries, particularly in the CAREC region, remained highly vulnerable to global trade shocks and must build greater regional resilience through enhanced intra-regional trade and connectivity.
Shah emphasized Pakistan’s strong commitment to regional economic integration, noting Islamabad’s active efforts to create shared economic opportunities with CAREC partners.
He highlighted the growing potential for both intra-regional and transit trade, backed by strategic initiatives such as improved multimodal connectivity and investments in port and rail infrastructure.
Pakistan’s geographic location, particularly its access to Corridor 5 and 6 through the Karachi and Gwadar ports, presented a key opportunity for the region.
He also cited the significant role of the Asian Development Bank, which has mobilized over $51 billion in CAREC related investments across more than 275 projects.
With the CAREC 2030 strategy already guiding this integration, he underlined that the region must now focus more sharply on trade facilitation. The conference, he viewed, provided a critical platform to advance this agenda and drive meaningful cooperation.
Syed Aftab Haider, CEO of Pakistan Single Window (PSW), highlighted the growing importance of digital connectivity in shaping the future of regional economies.
While physical infrastructure remained vital for trade, he emphasized that advancements in digital technology were enabling countries to overcome longstanding logistical and procedural barriers, particularly in regions like CAREC that were rich in resources but faced complex connectivity challenges.
Haider highlighted PSW as a transformative platform driving trade facilitation in Pakistan and beyond.
Launched in 2022, he said, the system integrated 22 government agencies and over 93,000 users into a single digital platform, streamlining cross-border trade, adding “It provides end-to-end services—including electronic permits, licenses, and certificates – and uniquely incorporates private sector actors such as banks, shipping inspectors, and communication providers.”
By enabling seamless data sharing, faster customs clearance, and enhanced supply chain security, he said PSW was improving trade efficiency while supporting small and medium enterprises and women-led businesses.
Haider stressed that national single window systems like PSW were essential tools for regional integration and align with global frameworks such as the WTO Trade Facilitation Agreement.
He called for regional cooperation to modernize customs, harmonize standards, and promote interoperability – key steps toward unlocking trade potential and ensuring shared economic resilience.
Emma Fan, RM Country Director for the Asian Development Bank (ADB), said Regional Cooperation and Integration (RCI) was a foundational pillar for sustainable economic growth, stability and shared prosperity.
Drawing parallels to successful models like the European Union and ASEAN, she noted how regional connectivity has significantly enhanced trade, investment, and resilience against global shocks.
Fan highlighted ADB’s long-standing commitment to fostering regional cooperation across Asia and the Pacific.
She pointed to the transformative impact of ADB’s support in the Greater Mekong Subregion (GMS), where over three decades of investment have developed more than 12,000 kilometers of roads and railways and 3,000 kilometers of power infrastructure.
“As a result, inter-regional trade in the GMS surged from $5 billion in 1992 to over $800 billion in 2022,” she added.
In the CAREC region, the Country Director said, ADB-led efforts have also made notable progress, adding from 2001 to 2024, CAREC’s project portfolio exceeded $50 billion, with more than 90 per cent directed toward transport and energy sectors.
She said over 300 technical assistance operations have helped reduce border delays and trade costs – average wait times at road crossings dropped from 17 hours in 2017 to 11 in 2023, and average costs fell from $160 to $130.
However, Fan cautioned that CAREC still faced significant challenges, including fragmented supply chains, evolving geopolitical dynamics, and the urgent need for green and resilient infrastructure, adding overcoming these would require greater innovation and collaborative efforts.
Pakistan, she noted, has played an active role since joining CAREC in 2010.
Fan said more than $2.5 billion has been invested in CAREC-related projects in the country, including an $800 million ADB facility aimed at improving road transit, and mentioned the launch of Pakistan Single Window which established it [Pakistan] as a strategic transit hub linking South Asia with Central Asia.
Highlighting the significance of connectivity and trade facilitation, she stressed that further improvements in Pakistan’s transport, energy, and digital infrastructure were vital to realizing its regional potential and contributing to broader CAREC integration goals.
Yang Guangyuan, Public Affairs Officer at the Chinese Embassy in Pakistan, highlighted China’s strong commitment to deepening regional integration and building a shared future with its neighbors.
Referring to the Central Conference on Work Related to Neighboring Countries held earlier this year in Beijing under President Xi Jinping’s leadership,
Yang noted that China’s strategy included expanding regional connectivity, strengthening industrial and supply chain cooperation, and enhancing people-to-people exchanges.
Yang emphasized that platforms like CAREC were essential for fostering multilateral collaboration and mutual development across the region.
He described connectivity – both physical and institutional – as the cornerstone of long-term prosperity. “Trade is not merely an economic term,” he said, “it’s an instrument of peace, progress, and mutual benefit,” quoting an African proverb, “If you want to go fast, go alone. If you want to go far, go together.”
He praised the CAREC community for embodying this spirit of cooperation and innovation and recognized the CAREC Institute as a critical knowledge hub for the region.
Through its work in research, capacity building, policy dialogue, and knowledge sharing, he said the institute empowered member countries to make better-informed decisions.
China, as the host country of the CAREC Institute, he said remained firmly committed to its continued growth and effectiveness.
Yang also commended Pakistan’s active role in the CAREC framework, expressing confidence in its continued leadership in promoting regional cooperation.
With the joint efforts of all member states, he said, the CAREC Institute was poised to play an even greater role in shaping the region’s future.