Ayesha Saba

Strategic integration of CPEC and CAREC (Central Asia Regional Economic Cooperation Program) holds immense potential to reshape the regional trade dynamics. By enhancing connectivity, diversifying trade routes, and attracting foreign investment, this synergy can drive economic growth across Pakistan, China, and Central Asia.

Talking to WealthPK, Adnan Khan Yousafzai, Socio-Economic Development Specialist, Centre of Excellence – China Pakistan Economic Corridor (CoE-CPEC), emphasized that economic security had become a critical component of national security strategies. He highlighted that Pakistan had a unique opportunity to expand its economic engagements in the region and beyond, thereby fostering sustainable economic growth and mitigating future economic challenges.

He underscored that Pakistan’s strategic location as a vital link between the CPEC and CAREC program positioned the country as a gateway for regional economic integration. This convergence, he noted, presented a significant potential for enhanced cooperation, particularly in trade and investment. “The CPEC route provides an alternative connection for Tajikistan, Uzbekistan, Kazakhstan, and Kyrgyzstan, all of which share direct borders with China.

By leveraging this connectivity, these nations can efficiently access the CPEC infrastructure. The development of Gwadar Port is particularly significant in this context, as it is strategically designed to facilitate trade not only for China but also for the landlocked Central Asian economies. This synergy has the potential to reduce trade barriers, streamline customs procedures, and expand market access, thereby stimulating trade and investment across the region,” he explained.

Despite the strategic advantages, trade between Pakistan and Central Asia remains limited. He pointed out that Pakistan’s exports to Central Asia countries accounted for less than one percent of its total exports, reflecting a significant untapped potential in economic cooperation. Furthermore, given the immense energy demands of both Pakistan and China, enhanced trade with Central Asia — an energy-rich region — could play a pivotal role in ensuring energy security.

Strengthening trade relations in this sector could lead to diversified energy supply chains and increased economic interdependence among the regional partners. The official cautioned that trade facilitation measures, regulatory harmonization, and political coordination among the participating states were crucial to realizing the full potential of CPEC-CAREC synergy.

Issues such as customs clearance delays, inconsistent tariff policies, and security concerns in certain regions must be addressed through joint policy frameworks. He suggested that a structured dialogue among Pakistan, China, and Central Asian states under the CAREC platform could lead to agreements on trade facilitation, reducing bureaucratic hurdles and ensuring smooth cross-border transactions.

Credit: INP-WealthPk