INFRASTRUCTURAL INTEGRATION BETWEEN PAKISTAN & KAZAKHSTAN: PROSPECTS FOR DEVELOPMENT & CHALLENGES

Author: Sarah Faraz

Pakistan, due to its location acts as an interconnecting gate way between three vital regions of the world i.e. South Asia, Central Asia and West Asia due to which it enjoys strategic relations with countries of each region. With respect to Central Asia, Pakistan enjoyed traditional ties due to their homogeneous religious history. With changing environment of the region due to the BRI corridors, Pakistan has entered a new phase of its relations with the Central Asian Republics. Pakistan is expected to become an economic hub but with far reaching benefits especially to the land locked countries of Central Asia. In this context, Kazakhstan and Pakistan are to enter a new era of their traditional friendship.

In the era of post USSR disintegration, Pakistan was the first few countries to recognize the republic of Kazakhstan. Since then several presidential and diplomatic exchanges have been shared to extend brotherly ties. Moreover, both have stood a common good in their stance towards the world affairs and have taken up all opportunities to back each other on international level. Both shares membership of UNO, OIC, SCO and ECO.[1]Under these platforms, several areas of cooperation have been signed, such as trade, education, energy and technology etc.

However, in strategic terms, Pakistan is the most important ally of Kazakhstan to reach warm waters of the Arabian Sea via an infrastructural web of roads, rails and port system. This would not only act as an integrating element for both countries, but for the entire region as well. As per the statistics of 2017, the trade volume between both countries is $28.42 million and is ever increasing with slight ups and downs and is expected to grow many folds with a proper infrastructural integration of both states. [2]Currently, Pakistan imports construction materials, food, machinery, iron and other metals from Kazakhstan but given the abundance of energy resources in Central Asian Republics, Pakistan can look forward to import supplies of electricity and other energy sources, only when proper infrastructural links are developed. Pakistan and the countries of Central Asia are major producer of cotton and its related products, thus if any official joint project is initiated between Pakistan and Kazakhstan either Bilaterally or on regional level, would help bring in huge sum of FDI (foreign direct Investment) and highly contribute to the peace, stability and development of both.

Infrastructural Integration

  • Via Rail – Road Corridors

An effective network of road already works to integrate Pakistan with Tajikistan, Uzbekistan and Turkmenistan. A majority of these networks are laid in such a way to connect to Pakistani ports. Similar networks of integration can be used to extend linkages with Kazakhstan and to generate a wider interconnection network. It is expected, that in doing so, the total of regional trade balance would increase in doubles and so would be the flow of exports and imports, impacting the overall GDP of the region in positive numbers. Furthermore, invitation to Kazakhstan by Pakistan to join the CPEC initiative has been warmly welcomed; this means that now the economic belt between China and Pakistan would be set on a way to incorporate Kazakhstan and strengthen the economic and trade cooperation between the two. [3]The initiation of a road corridor will prove to be significantly important in terms in reducing the travel time, and saving billions of dollars.

The map shows that only one rail-road line runs from Karachi to Rawalpindi by railway lies and then onwards via karakoram Highway to China and Almaty, Kazakhstan by road and rail system. Given the strategic importance and abundance of resource in the area, this trade route is not enough. New and longer routes are the need of the time to connect Pakistan with other different areas of Kazakhstan.

  • Via Sea Port Corridor

Limited access to sea, has had a huge economic cost for the Central Asian Republics, this lead to bear a heavy price for transportation in order to access sea ports and to carry out shipping operations. The Caspian Sea bordering Kazakhstan is indeed itself frozen and landlocked, unfit to carry out trade, thus in order to prevent isolation and to increase ones share in global value chain, the Central Asian Republics along with Kazakhstan looked to the nearest port area for easy, cheap and friendly accessibility. In this regard, the sea port of Gwadar is their final resort. Furthermore, the incorporation of Gwadar in the CPEC initiative and its linkage with Kashgar valley, China which borders the Khorgos Dryport of Kazakhstan is indeed an excellent opportunity to integrate the regions infrastructurally. This dryport can best be used to multiply the influx of trade with South Asia, Africa, Middle East and the Pacific. [4]

The Gwadar port of Pakistan provides a cheap, fast and effective mode of marine trade for Kazakhstan beyond its traditional agricultural exports. Along with this existing project, the QTTA (Quadrilateral Traffic in Transit Agreement) provides another attractive scheme to facilitate trade between China, Pakistan, Kyrgyzstan and Kazakhstan.  It can help look for secure over see markets for Kazakhstan’s products and all in all would enhance regional connectivity and economic growth.

Challenges on the way to Integration:

The task to integration between Pakistan and Kazakhstan is a time taking and complex one. This is due to the existing regional distance between the two countries and added up by regional security environment in each. Further, the integration requires a huge infrastructural cost, time and proper maintenance / regulatory system. The task is further complicated by the terrorist/ extremist element from within the state or that sponsored by other states, to hurdle the progress of Pakistan. The proper functions of the infrastructural corridor between Pakistan and Kazakhstan would also require transparency, public- private partnership, and the involvement of vital services such as Finance, banking, telecommunication etc. A huge implication of infrastructural integration between Pakistan and Kazakhstan is also upon the ports of Pakistan, which would be required to improve their holding capacity as well as shipping and boarding facilities. [5]

[1] Fahim, Muhammad. Pakistan-Kazakhstan Relations : A Quick Overview. July 12, 2020. http://pakistaninfo.com/13978/pakistan-kazakhstan-relations-a-quick-overview/ (accessed September 16, 2020).

[2] The Nation. Roadmap ready to intensify Pak-Kazakh trade ties. https://nation.com.pk/01-Feb-2019/roadmap-ready-to-intensify-pak-kazakh-trade-ties (accessed September 16, 2020).

[3] Panda, Ankit. Pakistan and Kazakhstan Look to Increase Cooperation. August 27, 2015. https://thediplomat.com/2015/08/pakistan-and-kazakhstan-look-to-increase-cooperation/ (accessed September 24, 2020).

[4] China-Pakistan Economic Corridor. The relevance of Gwadar port to Central Asia. May 5, 2020. http://cpecinfo.com/the-relevance-of-gwadar-port-to-central-asia/ (accessed September 24, 2020).

[5] Anwar, Zahid. “Development of Infrastructural Linkages between Pakistan and Central Asia.” South Asian Journal of South Asian Studuies, 2011: 103-115.

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