INP-WealthPk

Trans Afghan Railway to Open A New Era of Socio-Economic Development

March 14, 2022

By Syed Marwan Shah ISLAMABAD, March 14, (INP-WealthPK): Uzbekistan is one of the landlocked countries in Central Asia needing cost-efficient access to the warm-water seaports for transshipment of its goods to the offshore markets. Lack of access to a warm-water seaport has been choking the export growth of this important but doubly landlocked country in the region having an abundance of mineral, gas, and oil reserves. [caption id="attachment_64792" align="aligncenter" width="696"] Central Asian Regional Economic Corporation (CAREC)[/caption] Pakistan – an important Muslim nuclear country having an ideal political, economic and strategic location in South Asia – offers Uzbekistan access to its warm-water seaports of Karachi, Bin Qasim, and Gwadar for transshipment of goods. These Pakistani ports provide a shorter sea route to the Central Asian states, particularly to Uzbekistan. With this cherished objective in view, the Uzbek, Afghan, and Pakistani leadership held their first trilateral meeting at Tashkent in February 2021 on laying the Trans Afghan Railway aka Mazar-i-Sharif-Kabul-Peshawar railway connecting Uzbekistan with the Pakistani seaports through Afghanistan. During the trilateral meeting, a road map was signed for laying the railroad. Uzbek Prime Minister Mirziyoyev also paid a visit to Pakistan before the signing of the road map. The Trans Afghan Railway link is one of the designated rail corridors defined and planned under the Central Asian Regional Economic Corporation (CAREC) Railways Strategy. The major infrastructure development project will cost around $5 billion with a track length of 573km. It will not only provide a gateway for Pakistan to access Central Asian Republics (CARs), but also generate substantial revenues. A delegation led by Uzbek Deputy Prime Minister for Investment and Foreign Trade Mr. Sardor Umurzakov recently held a meeting with Federal Minister for Railways Muhammad Azam Khan Swati, Minister for Planning Asad Umar, Minister for Food Security and Research Syed Fakhar Imam, and Advisor to the Prime Minister on Commerce Abdul Razaq Dawood. In the meeting, the two sides discussed the Mazar-e-Sharif-Kabul-Peshawar rail project. All the stakeholders agreed on the establishment of a Special Purpose Vehicle (SPV) to further stimulate the project. The Uzbek delegation included the Minister of transport, minister of agriculture, first deputy minister of investment and foreign trade, deputy minister of foreign affairs, and ambassador of Uzbekistan to Pakistan. The project was primarily discussed during the visit of Uzbek Deputy PM Sardor Umur Zakov to Pakistan on September 10, 2020. The heads of the state of Uzbekistan, Afghanistan, and Pakistan signed a joint appeal letter to the World Bank for financing the project on 27th December 2020. According to CAREC, in the current difficult global economic environment, the member countries will need to further strengthen regional cooperation and integration efforts. Investment in railway assets and implementation of related soft measures to enhance trade will be critical factors in making railways attractive for shippers and transport operators. Enhancing railway connectivity, promoting trade and investment across borders, and improving access to external markets will help improve economic prospects of the subregion as a whole. A delegation from Pakistan visited Uzbekistan and met with representatives of the Ministry of Transport of Uzbekistan on 15th February 2022 to further discuss steps for practical implementation of the project. The Pakistani side expressed its readiness to start field expeditions by March 15 of this year during the discussion. The Trans Afghan Railways will not only benefit Pakistan, but also contribute to the socio-economic betterment of the whole of South Asia and the Central Asia Republics (CARs). It will also support the reconstruction efforts in Afghanistan. The Pakistan Railways is already conducting a feasibility study on a new rail link from Peshawar to Jalalabad which will be completed shortly. It has been agreed by the three countries that Pakistan will share the findings of the feasibility study with Afghanistan and Uzbekistan.