Ahsan Iqbal has outlined a new plan to strengthen Pakistan’s role in regional trade by transforming Central Asia Regional Economic Cooperation (CAREC) transport routes into economic corridors connecting Central Asian markets with Pakistan’s Arabian Sea trade routes. Speaking at the 25th CAREC Ministerial Conference in Ulaanbaatar, Mongolia, the Planning Minister said CAREC Corridors 5 and 6 could provide an important link between landlocked Central Asian countries and Pakistan’s maritime trade infrastructure, while also creating opportunities for investment, exports, employment and business activity along the routes.
Iqbal said the purpose of these corridors should extend beyond providing a passage for trucks carrying goods from one country to another. According to the minister, Pakistan and other CAREC members need to develop transport routes that allow businesses to move goods in a reliable, efficient and commercially viable manner. He said the corridors should be designed to generate wider economic activity by connecting transport infrastructure with businesses, production facilities, logistics services and markets. Such an approach, he said, could help convert transit traffic into a broader source of trade, investment and employment rather than limiting the routes to simple movement of cargo.
The minister said Pakistan would need to complete the transport chain by improving infrastructure at several points. This includes upgrading CAREC roads, modernizing border facilities at Torkham and Chaman, increasing rail freight capacity through the proposed ML-1 upgrade and improving connections between inland logistics facilities, dry ports and seaports. These measures are intended to create a more connected freight network capable of moving goods from Central Asia through Pakistan and onward to international maritime routes. Better coordination between road, rail and port infrastructure would also be important for reducing delays and improving the reliability of regional supply chains.
Iqbal also proposed the development of logistics and production hubs at strategic locations along the CAREC corridors. These facilities could include cold storage, packaging units, warehouses and light manufacturing operations, allowing goods moving through Pakistan to receive additional processing before reaching domestic or international markets. The proposal could create opportunities for local businesses to participate in regional supply chains while supporting employment and export-oriented activity. Establishing such facilities along major transport routes would also provide a way to connect transit infrastructure with industrial and commercial activity in surrounding areas.
Digital connectivity was another key element of the minister’s proposal. Iqbal called for greater integration of digital trade systems across the CAREC region and said Pakistan’s Single Window system could provide a foundation for connecting digital trade processes with regional partners. Greater use of digital systems could reduce paperwork and improve the exchange of information between traders, customs authorities and other agencies involved in cross-border commerce. The minister said advance electronic information, compatible operating hours, coordinated border procedures and fewer repeated checks should form part of efforts to make regional trade processes more efficient.
The minister further proposed measuring the performance of trade corridors through practical indicators rather than focusing only on the completion of infrastructure projects. These indicators could include border waiting times, delivery periods, employment generated along the corridors and the participation of small and medium-sized enterprises. Such measurements would provide a way to assess whether improvements in roads, railways, borders and logistics facilities are translating into faster cargo movement and wider economic participation. Iqbal also called on CAREC countries to coordinate the planning and development of cross-border projects, adopt common standards and align investment and construction schedules to reduce gaps between infrastructure networks.
Iqbal said the Asian Development Bank could play a role in mobilizing financing for the proposed infrastructure and economic corridor development, including support for attracting private-sector investment. He also highlighted Pakistan’s geographic position at the intersection of Central Asia, South Asia and maritime trade routes, arguing that this location provides an opportunity for the country to contribute to regional trade, digital integration and the development of regional value chains. The proposed approach places transport infrastructure, digital trade systems, logistics facilities and production activity within a broader regional framework aimed at strengthening commercial connections between Central Asian economies and international markets through Pakistan.
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