Pakistan has called for a broader transformation of the Central Asia Regional Economic Cooperation (CAREC) transport network, with Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal urging member countries to develop next-generation economic corridors that combine transport infrastructure with logistics, digital connectivity, energy cooperation and climate resilience. Speaking during a session of the 25th CAREC Ministerial Conference in Ulaanbaatar, the minister said Pakistan views CAREC Corridors 5 and 6 as an opportunity to strengthen connections between Central Asia and the Arabian Sea while generating economic activity along the routes.
Iqbal said the focus of regional connectivity should extend beyond simply moving vehicles and cargo across borders. According to the minister, the effectiveness of a corridor should also be assessed by whether businesses can use it reliably, competitively and profitably. The CAREC programme currently focuses on six primary multimodal transport corridors connecting different parts of Eurasia from north to south and east to west. Pakistan is seeking to use its geographic position between Central Asia, South Asia and maritime routes to strengthen trade, investment and regional value chains.
The minister said completing the transport chain would require improvements across several parts of the regional infrastructure network. These include upgraded CAREC roads, modernised border facilities at Torkham and Chaman, greater rail freight capacity through the proposed upgrade of Main Line-1, and more efficient connections between dry ports and seaports. He also highlighted the potential for logistics and production hubs to develop at strategic locations along the corridors, with cold storage, packaging, warehousing and light manufacturing identified as activities that could help convert transit traffic into exports, employment and additional economic value for communities.
Digital connectivity was also presented as an important component of the proposed corridor transformation. Iqbal called for the development of a digital corridor across the CAREC region and pointed to Pakistan Single Window as a foundation for phased digital integration with regional partners. He said trade documentation should ideally be reviewed before consignments reach border points, allowing authorities and businesses to reduce delays and improve the movement of goods. Such digital integration could support more coordinated customs and trade procedures across participating countries.
Energy cooperation and climate resilience were also included in the minister’s regional connectivity agenda. Iqbal referred to CASA-1000 as an example of the potential offered by cross-border energy connectivity. At the same time, he said roads, railways and logistics facilities should be designed to withstand climate-related challenges, including floods and extreme heat. He argued that a successful corridor should carry more than physical cargo by supporting investment, technology, energy and wider economic opportunities across participating communities.
Addressing questions about how CAREC countries could ensure that connectivity produces shared benefits, Iqbal emphasised coordinated planning, stronger cross-border cooperation and measurement of the economic and social impact of corridor development. He proposed identifying priority cross-border projects, preparing them according to common standards and coordinating investment and construction schedules. He also highlighted a potential role for the Asian Development Bank in mobilising financing, including private-sector investment where appropriate.
The minister further called for borders to be treated as a shared service, with compatible operating hours, advance electronic information, coordinated procedures and fewer repeated inspections. He said countries should measure indicators such as border delays, delivery times, local employment, participation of small and medium-sized enterprises, and opportunities for women and young people. Pakistan is also preparing to assume the CAREC Chairmanship in 2027 and host the 26th CAREC Ministerial Conference, according to the minister.
On the sidelines of the conference, Iqbal witnessed the signing of a memorandum of understanding between the CAREC Capital Markets Development Forum and the ASEAN Capital Markets Forum. The agreement is intended to strengthen cooperation between CAREC and ASEAN capital markets, with areas including knowledge sharing, regulatory cooperation and greater regional financial integration. The development adds a financial connectivity component to the broader discussions around trade, infrastructure and digital integration at the CAREC ministerial gathering.
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