Pakistan Proposes Upgrading CAREC Transport Routes
In a bid to enhance regional connectivity, Pakistan has suggested transforming the Central Asia Regional Economic Cooperation (CAREC) transport routes into next-generation economic corridors. This proposal, presented by Planning Minister Ahsan Iqbal at the 25th CAREC Ministerial Conference in Ulaanbaatar, aims to integrate logistics, digital connectivity, energy networks, and climate-resilient infrastructure. Iqbal stressed that the effectiveness of regional connectivity should be evaluated based on its ability to facilitate reliable and commercially viable trade, rather than merely focusing on vehicle movement.
A statement from the Planning Ministry revealed that Pakistan has identified CAREC Corridors 5 and 6 as potential links between Central Asia and the Arabian Sea, with plans to develop economic activity and production along these routes. To achieve this, Iqbal outlined the need for upgrades, including the modernization of border facilities at Torkham and Chaman, enhancing rail freight capacity through the proposed ML-1 upgrade, and improving connections between inland routes, dry ports, and seaports.
The minister proposed the development of logistics and production hubs at strategic locations along the corridors, featuring facilities such as cold-storage, packaging, and warehousing, as well as light manufacturing capacity. According to Iqbal, such infrastructure could convert transit traffic into exports, employment, and economic activity for local communities. He also emphasized the importance of digital integration, suggesting the Pakistan Single Window (PSW) as a foundation for phased integration with regional partners, enabling the processing of documentation before consignments reach borders.
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Iqbal highlighted the potential for cross-border energy cooperation, citing CASA-1000 as an example, and called for the development of new road, railway and logistics infrastructure designed to withstand floods and extreme heat. He urged CAREC countries to identify priority projects, prepare them according to common standards, and align investment and construction schedules. The Asian Development Bank could play a role in mobilizing financing, including private investment where appropriate.
The minister advocated for more coordinated border operations, suggesting compatible operating hours, advance electronic information, aligned procedures, and fewer repeated checks. He proposed measuring performance through indicators such as border delays, delivery times, local employment, SME participation, and economic opportunities for women and young people.
Pakistan aims to leverage its geographical position between Central Asia, South Asia and maritime trade routes to expand regional trade, digital integration, and value chains. Iqbal stated that Pakistan looks forward to assuming the CAREC chairmanship in 2027 and hosting the programme’s 26th Ministerial Conference. On the sidelines of the conference, a memorandum of understanding was signed between the CAREC Capital Markets Development Forum and the ASEAN Capital Markets Forum, aiming to strengthen links between the capital markets of CAREC and ASEAN member countries through knowledge sharing, regulatory cooperation and greater regional financial integration.
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