Ayesha Saba

Pakistan needs to step up collaboration in trade and investment with Central Asian countries through the CPEC.

Talking to WealthPK, research associate at the Institute of Strategic Studies Islamabad (ISSI) Arooba Zaheer said, “In today’s world, economic security has become the foremost concern within national security strategies. Pakistan has the opportunity to forge connections and generate wealth by boosting economic activities both within the region and beyond, thereby mitigating future challenges and pressures.” She highlighted that Pakistan's strategic location positioned it as a bridge between CPEC and CAREC, facilitating the spillover of economic benefits and creating an enormous potential for cooperation between the two initiatives. “The CPEC route offers an alternative way to connect Tajikistan, Uzbekistan, Kazakhstan, and Kirgizstan, which share direct border with China. Gwadar has the potential to realize the long-cherished dream of enhanced connectivity between Pakistan and Central Asia.

As a result, the port of Gwadar is designed specifically to serve the needs of China and Central Asian countries. This synergy can help reduce trade barriers, streamline customs procedures, and increase access to markets, thereby boosting trade and investment flows across the region.” She further said, “Pakistan-Central Asian trade has not increased substantially. The magnitude of Pakistan’s exports is very low compared to Central Asia, as Pakistan’s exports to  Central Asia countries make less than 1 percent of total exports.” “While the potential benefits are substantial, challenges remain. Coordination among member states, alignment of policy objectives, and ensuring equitable distribution of benefits are key areas that require attention. Addressing these challenges through collaborative policy frameworks and joint initiatives will be essential for realizing the full potential of this regional synergy,” she suggested.

The Central Asia Regional Economic Cooperation (CAREC) Program is a partnership of 11 countries (Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan) working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction. Since its inception in 2001 and as of December 2023, CAREC has mobilized $51.02 billion in investments that have helped establish multimodal transportation networks, increased energy trade and security, facilitated free movement of people and freight, and laid groundwork for economic corridor development.

Credit: INP-WealthPk