Pak-Afghan-Uzbek trade corridor

Author: Muhammad Asif Noor

In a recent important development Pakistan signed a joint appeal letter to the international and regional financial institutions to assist in finalizing the connectivity project of railway to connect Pakistan with Uzbekistan via Afghanistan. This $4.8 billion request was jointly signed by Pakistan’s Prime Minister Imran Khan, President of Uzbekistan’s and President of Afghanistan. This entire connectivity project will help to build a 573 Km long railway link connecting Peshawar to Kabul and then to Uzbekistan via Mazar e Sharif. Through this route there will be 27 stations, 912 artificial contractions including 7 tunnels. This route will help the movement of trade cargo from Pakistan to the Central Asia and beyond. This will help strengthen the regional trade from South Asia to Central Asia. World Bank has provided the initial promise for finalizing the project. In the growing regional connectivity especially with the rise of the projects like Belt and Road Initiative led by China, Eurasian Connectivity Projects, Pipelines, CASA projects and initiatives, Roads links and connectivity linkages led by international regional and multinational organizations for promotion of trade and cooperation, there is one common agenda- to build trade and commerce.  In these plethora of initiatives, there is a greater chance for Pakistan to connect its markets with the regional and global value chains especially because of its important geographical location.

This culmination of signing of the appeal or a joint letter and consent to partner in this project is an important regional initiative led by Uzbekistan. This is a grand CASA dream where the aim is to build stronger energy and connectivity linkages between both regions to help Afghanistan to uplift itself and rebuild its economy apart from providing substantial contribution towards faster and easy trade among the regional countries. In May last year there was a comprehensive review meeting between US, Afghanistan and Uzbekistan to propose and build further a comprehensive action plan to connect Central Asia with South Asia. With the support from the financial institution including World Bank, building railway network is a significant step forward especially while viewing the regional dynamic and challenges related to territory, terrain and above all security issues, the trade bottlenecks will be removed. Uzbekistan with its dynamic government headed by Shavkat Mirziyoyev has led several other important projects wherein Afghanistan has been engaged to broad the peace base in the region. This engagement largely supported by the international financial institutions, include the trade, transport efforts to bolster not only economy but also peace. Peaceful and prosperous Afghanistan is in the larger interest of the region and beyond.

Over the last two decades, the political and economic developments in these both regions have entirely changed the economic structure and trade flow patterns

Transportation and especially railway play a significant role in building industrial and trade linkages amongst countries, regions and beyond. With cheaper mode of connectivity, railway link have played greater role in building economic base and strength of the countries. It is equally important for the prosperity of the country as we consider maritime presence and routes helping trading of goods and services. Trade links from Asia to Europe continued to build the human history, geography especially with the presence of the Silk Road that ran past the magnificent China and the Roman Empire helped connect civilizations. To carry  commodities including gems, silver, carpets, spices, paper, glass and silk was the main purposes of the route from Asia to Europe and vice versa. The transport corridor that was built and helped enriched a civilization and culture of its own, was gradually losing its bustlingness especially due to advent of the air travel. After many years, the railway link between the CARs with China was revived and later this was further extended and branched out to connect countries enroute. The Silk Railway was transforming and giving new imputes and helped rebuild the life on the way. The importance of the rail link cannot be denied as it is considered as the lifeline of a country but similarly for the entire region by diversifying trade. Under this trilateral rail project the improvements in rail transport can help the three signatory countries to attract foreign investment, trade,speedy delivery of goods and services and finally prosperity. Furthermore, it would help in fortifying the regional relations. The leadership in both regions is also aware of the fact that finest railway infrastructure will further accelerate direct access of South Asian and Central Asian states to the propitious European and Asian markets.

In this ripped opportunity, Pakistan is looking to advance its relations with Central Asian region through a vigorous approach in building partnerships in diversified region. There are robust consultations and discussion are ongoing to help connect Pakistan towards the region through the larger connectivity and other important initiatives. Pakistan is actively looking towards building the access in the Central Asian region having the access to the markets through not only China and the recently led initiative by Uzbekistan to connect Pakistan to the region. Earlier in September, there was a Quadrilateral Traffic in Transit Agreement (QTTA) which was an agreement between Pakistan, China, Kyrgyzstan, Kazakhstan and Uzbekistan. Pakistan is at an important juncture and this opportunity of accepting to be part of these important steps not only signifies Pakistan’s overall geographical and economic reputation. The QTTA is helping Pakistan to export its goods and services in the region which is burgeoning and beaming with increasing trade in the region growing with each passing day.

The regions of Central Asia and South Asia have shared a long tradition of historical linkages and geo-cultural harmony. Pakistan being an important country of South Asia can act as the transit corridor for Central Asian States to access South Asian region. Over the last two decades, the political and economic developments in these both regions have entirely changed the economic structure and trade flow patterns. The region’s economies and institutions continue to expand. As the rail networks are long lasting, many railway systems in both regions are struggling to adjust with the changing conditions.However, the concerted effort by the Governments of states in both regions can revamp their railway to make use of its full potential for the regional progress.

The writer is Director Institute of Peace and Diplomatic Studies.

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