Regional integration

The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives were raised by Chinese President Xi Jinping during his visits to Central Asia and Southeast Asia in September and October 2013. The Chinese led ‘Silk Road Economic Belt’, the ‘Maritime Silk Route’ (often consolidated as the One Belt One Road or OBOR) and the vision for 21st century Eurasian connectivity will connect the markets of Asia, Europe and beyond. The Silk Road is an important part of Chinese history and civilisation. The OBOR initiative is based on the idea of reviving the old traditional Silk Road and re-building modern economic collaboration. The innovative concept of the OBOR aims at integrating the Asian and Central European continent, and realising the connectivity of roads, trade, finance and people-to-people contact so as to jointly build a platform for cooperation and development. The Asian Infrastructure Investment Bank (AIIB) has been established parallel to this belt and road initiative. The AIIB has a pivotal role in supplying the funds that promote connectivity and integration. In advancing the belt and road initiative, China’s strategy is to strengthen cross border connectivity and regional integration with the goal of creating strategic channels, trade and industrial hubs, and cultural exchanges.
The China-Pakistan Economic Corridor (CPEC) is also a part of the OBOR. The corridor would link Gwadar to China’s western city of Kashgar. China’s access to the markets of South Asia, Central Asia and Middle East would be enhanced. As the CPEC is now (between China and Pakistan) in its implementation phase and is out of uncertainties, at this stage extension of an invitation to Kazakhstan is a very bold move. I think the motivation behind Pakistan in seeking more patrons for its CPEC is not the fear that trade and transit potential between Pakistan and China is not big enough to make Gwadar a world class shipping hub but the Chinese concept of regional integration.
There are three factors that make Kazakhstan and Pakistan important for each other. First, both countries are Muslim, brotherly countries and that affinity has brought them closer to each other. Geostrategic location, economic potential — especially energy resources — and the multi-ethnic, diverse culture are three major factors that can be counted on to understand the dynamics of this relation. Kazakhstan’s geo-political existence between Russia and Asia, along with the long border with China, makes it a country of great strategic importance. On the other hand, Pakistan occupies a geostrategic position of importance: bordered by Iran on the west, China on the northeast, India on the east, Afghanistan on the northwest and the Arabian Sea to the south. It is also significant that Pakistan lies at the junction of great powers where it has Russia and China as its neighbours. Although Pakistan has no border with Kazakhstan, its geostrategic location makes this country important for Pakistan because Pakistan has an interest in the states bordering Kazakhstan.
The second factor making Kazakhstan and Pakistan important for each other is that Kazakhstan is a large producer and rich in energy resources while Pakistan is looking for new avenues to cooperate in this regard. Kazakhstan is a substantial producer of oil and gas where coal has dominated both energy production and consumption. It is believed that Kazakhstan is estimated to have around 30 billion barrels of crude oil reserves, which makes it the 11th in the world in this regard. Along with oil, it has domestic hydrocarbon reserves that amount to 3.3 to 3.7 trillion cubic meters of gas, of which 2.5 trillion cubic meters are proven. Due to huge energy resources and economic potential Kazakhstan and Pakistan have huge prospects to enhance their ties to a much higher level. In this perspective, the energy issue certainly deserves particular attention and is a point of convergence for both states.
The third factor that makes both states important for each other are the multi-religious, multi-ethnic and democratic prospects for creating peace and cooperation in the region. Both states are multi-religious and their populations largely live in peace and harmony with each other. Pakistan and Kazakhstan are deeply concerned about the rise of religious extremism in their neighbourhood. They have a shared vision of establishing peace in the region, which is only possible when there is peace, stability and development in Afghanistan.
The strategic location of Pakistan offers it great opportunity to act as an energy and trade corridor linking Central Asia, South Asia and West Asia. Pakistan and Kazakhstan have improved their trade relations and, over the years, the trend is moving higher. For the year 2008, trade between Kazakhstan and Pakistan increased by up to 30 percent, reaching $ 43 million. In 2009, trade was $ 17 million between both countries. The major items that Kazakhstan exports to Pakistan are organic compounds, compounds of precious metals and products, chemical industrial products, raw cotton, leather, wool and others. Major products of export from Pakistan to Kazakhstan are mainly leather, articles of apparel/clothing accessories, pharmaceutical products, telecommunication appliances and equipment, cotton products, bedlinen, knitwear, pharmaceuticals, garments, leather, rice, fruits and others. As Kazakhstan is a landlocked country, it can benefit from the ports of Pakistan, including the major Gwadar port, which is nearest for Kazakhstan. Through Pakistan, Kazakhstan can reach the markets of the Far East, Middle East, South Asia and Africa.
Due to geographic limitations and being landlocked, with restricted access to the high seas, Kazakhstan is looking to share its riches with the countries of the region and Pakistan can provide access to warm waters by offering both its ports i.e. Gwadar and Karachi for trade and business.
Bilateral trade has significant potential, which is not fully utilised. The main reason is lack of an adequate transportation link between the two countries. Along with this, there is a need to develop communications linkages including air, rail and road links. There is a need to develop air links between Astana and Islamabad. It is only due to the presence of adequate communications linkages, especially air, in which maximum potential can be exploited on both sides. Kazakhstan can further enhance its trade by the transportation of goods from the Karachi port via the Karakorum Highway.

The writer is a PhD candidate at the School of Politics and International Relations, QAU