Faiza Tehseen

The linking of Islamabad–Tehran–Istanbul (ITI) Road Transport Corridor with the Belt and Road Initiative (BRI) will open a portal in the region for manifold trade and business opportunities, said Moazzam Ghurki, President of Pakistan China Joint Chamber of Commerce and Industry (PCJCCI), while talking to WealthPK. “Pakistan has good trade relations with Turkey, Iran, and China. The ITI Road Transport Corridor Project is a successful one for cargo transportation to the Chinese markets. Turkey's exports to China through the Pakistani route will also prove beneficial. Investment by the Turkish companies in Pakistan has also increased by over USD$1 billion this year. A broad spectrum Strategic Economic Framework agreement has been signed covering a variety of aspects, i.e., science and technology, tourism, defense, health, and education,” he said.

Moazzam said at least 17 Turkish firms are currently operating in Pakistan, while around 233 Pakistani capital firms are active in different sectors in Turkey. The main focal segment of Turkish firms is construction. Pakistan’s economic diplomacy is no longer a domestic issue but a foreign policy challenge. More projects of this type must be planned in conjunction with the Belt and Road initiative. Pakistan should prioritize international relations without compromising the Chinese economic development program in the region. Same in the way, the Turkmenistan‐Afghanistan‐Pakistan‐India (TAPI) gas pipeline can significantly improve Pakistan’s connectivity with Western Asia and Europe.

Moazzam added that Pakistan is a crucial component of the BRI due to its geophysical location, turning it into a bridge between the western Chinese regions and the Arabian Sea. “It helps reduce both the logistics cost and time to transport goods to the Middle East, Europe, and Africa. Chabahar port in Iran is another element of regional connectivity.  It is not the official part of the BRI but is a trade link between Central Asia, Afghanistan, Iran, and India bypassing Pakistan.” The PCJCCI president added that Pakistan and Iran share a trade volume of approximately US$2 billion. Pakistan and China’s mutual trade balance was worth US$1.25 billion during the FY2023, showing a positive trend. The friendly relationship will become more integrated through trade and business among them.

Exports from all these countries to China and other linking trade routes will enhance trade activities in the region, he continued. Moazzam said the PCJCCI will enhance Chinese investment in this sector to create a sustainable economic zone among the three friendly states. Furthermore, to extract more benefits from such trade routes, it is the core responsibility of the government to frame flexible trade policies and reduce tiresome barriers, i.e., easy customs procedures, one-window documentation operations, good infrastructure, and smart logistics. These trade routes are not only vital for economic exchange, but also foster cultural and political ties among the related countries, he said.

He suggested that the trade and policymakers should conduct trade and business-related roadshows, both individually and jointly, to promote their interests and cooperation.  “Special joint economic zones should also be established along these routes to provide more opportunities for the trade and business communities to come closer. It is also important to establish mutual trade fair venues in these zones. I strongly recommended that a smart trade and business framework should be devised, taking into account the geographical location, for Pakistan’s prosperity.”

Credit: INP-WealthPk