The Quadrilateral Traffic & Transit Agreement (QTTA) was signed by Pakistan, China, Kyrgyzstan and Kazakhstan on March 9, 1995, in Islamabad. There are allied protocols to the Quadrilateral Agreement i.e., Protocol on Custom Procedures for traffic in transit and Visa Regime signed in July 1996; Protocol on establishing a system of International Road Transit; Permit for traffic in transit among the contracting parties in November 1998 and Regulations for implementation of Agreement on traffic in transit among contracting parties signed in November 1998.
It was enforced in May 2004 and transit traffic remained in operation till the landslide on Karakoram Highway in January 2010 when a 24-km portion of KKH submerged in water. After the hectic efforts of Pakistani and Chinese engineers, this road portion was restored in September 2015 and was opened for traffic. The route, however, remains closed during the winter season due to snowfall, which is a big problem for trade.
The primary reason for the non-utilisation of trade corridors between India and Pakistan is politics.
It is pertinent to mention various problems faced by transporters on the QTTA route. It is observed that the issuance of visas to the drivers/personnel operating under the Quadrilateral Agreement is usually delayed, and there is no facilitation by member states. Moreover, the visa facilitation mechanism agreed to in a meeting of diplomats of Member Countries held at the Ministry of Foreign Affairs, Islamabad, on June 30, 2008, is not being honoured/implemented by the Embassies of Member States. Likewise, authorities also unnecessarily stop vehicles at numerous locations in transit through their territories. Further, inspection and clearance of vehicles in transit by Custom/Immigration Authorities in China also take some time. Delays by Border Agencies in clearances, especially in Tashkurgan, take three to four days. Consequently, perishable goods have often been damaged/destroyed due to such time taking procedures. Being a Transit Agreement, there should not be such restriction.
While taking weaknesses and deficiencies in transportation structure, it is observed that the primary reason for the non-utilisation of trade corridors between India and Pakistan is politics. Relations between the two countries have been sour since the Modi government took over. These relations have also cast their shadow on trade relations, which initially slowed down due to tariff rates and import restrictions and ultimately closed down to the detriment of both countries.
Despite several bilateral and multi-lateral agreements, only Transit Trade with Afghanistan is fully functional, with regular transit traffic plying from and to Afghanistan. There have been a few consignments under Transport International Routiers (TIR), which have been moved from Pakistan to Uzbekistan via Afghanistan. The rest of the Agreements, although legally present, are practically dormant as there has been no movement of cargo under these agreements.
As for trade with China, it has been flourishing for years. But it has mostly been centred on imports by Pakistan via Sost Border. Pakistan exports quite little to China.
The CPEC had huge potential, but the progress has almost halted in the last four years due to political and financial reasons. Even otherwise, the road network connecting Pakistan with China and Afghanistan through three proposed corridors has not so far been developed for the transport of containerised cargo. Roads from Gwadar to Zero point on Coastal Highway and Gwadar to Turbat are single-lane roads. In their present state, they can cater for the transportation of cargo to a limited extent only.
Pakistan’s trade with Afghanistan, transit as well as imports/exports, is carried through Torkham, Chaman and Ghulam Khan. The road network linking these customs stations with the rest of the country is not in a promising shape. Many of the initiatives, taken in the past few years, like the expansion of the roads, and development of trade terminals, have stopped due to financial crunch or administrative issues.
The present transportation network of Pakistan with the regional countries had a lot of potential, but the dream of economic integration could not be realized due to inefficiency on the part of many state departments as well as the absence of a proactive approach of the traders and trade organisations, including Chambers of Commerce and Industry. Trade with India had continued through rail and road corridors for long despite the geo-strategic and political challenges. It stopped partially due to the inefficiency of many organs of the state. Many of the trade agreements with CARs, as well as ECO, could have been economically very fruitful for Pakistan, had the different departments of the government worked in unison.
(To Be Continued)
Abdul Rauf studies at Jiangsu University of Science & Technology, China. He is interested in emerging technologies and Pan-Asian economies.Saud Bin Ahsen is a freelancer.
He can be reached at [email protected].