Business & Economy

Pakistan Arranges Trade with Central Asia & Russia, Bypassing Afghanistan

Kyrgyzstan's Transport Minister and Pakistan's Ambassador to the Kyrgyz Republic welcomed the first TIR consignment brought by Pakistan's National Logistic Cell.
Sputnik
This new trade route provides economic access for Kyrgyzstan to trade with Pakistan and Central Asian Countries (CARs) and Russia.

According to Hasan Zaigham, Pakistan's Ambassador to the Kyrgyz Republic, the National Logistics Corporation (NLC) of Pakistan has accomplished a remarkable feat by transporting its first export cargo to Kyrgyzstan via China under the UN-mandated Transport International Routier (TIR) system.
The NLC's innovative transportation efforts have opened up land-based trade not only with Kyrgyzstan and other landlocked Central Asian Republics (CARs) but also with Russia and East Europe.
A reception ceremony was held at Bishkek Customs Port to mark the start of land-based trade.

Kyrgyz Minister of Transport and Communications, Mr. Tekebaev Tilek Kydyrmaevich, Pakistan’s Ambassador to Kyrgyzstan, Mr. Hasan Ali Zaigham, senior officials of the Kyrgyz government, representatives of the Association of International Cargo Carriers of Kyrgyzstan, and members of the local business community attended the event.

New trade route

Strengthening Trade & Connectivity with Central Asian States

Getting the first shipment from Pakistan to Kyrgyzstan through the TIR system, which is required by the UN, is a big accomplishment. China, Kazakhstan, Kyrgyzstan, and Pakistan signed the Quadrilateral Agreement on Traffic in Transit (QTTA) in 1995. This is a part of it. The goal of this deal is to make it easier for these countries to trade and connect with each other on land. The recent transport operation builds on Pakistan's previous successful TIR operations, making trade and cooperation in the area even stronger.

Taimur Fahad Khan, a political analyst, foreign policy expert, and researcher associated with the Institute of Strategic Studies in Islamabad, told Sputnik, "The delivery of the first consignment from Pakistan to Kyrgyzstan via the UN-mandated TIR (International Road Transport) is a great achievement. This was the second transport operation of its kind that was carried out under the Quadrilateral Agreement on Traffic in Transit (QTTA) that was signed between China, Kazakhstan, Kyrgyzstan, and Pakistan in 1995 and is finally coming to fruition.”

First, such a transport operation was carried out in November of this year, when cargo from Pakistan reached Kazakhstan by way of China and Kyrgyzstan.
Moreover, he said, “This was not the first TIR that Pakistan has successfully operationalized. Other notable operational TIRs include: Islamabad-Tehran-Istanbul; Pakistan-Afghanistan-Uzbekistan-Kazakhstan; and China-Pakistan-Afghanistan can be and would be seen."
New trade route

Why has Pakistan Chosen the Alternative Route?

In recent years, Pakistan has been exploring new trade routes to improve its economic connectivity with the rest of the world. Due to political instability and security concerns, the traditional trade routes through Afghanistan and Iran have become challenging for Pakistan. As a result, Pakistan has been focusing on alternative routes, particularly through China, to access Central Asia and Russia, and current development in the shape of the first TIR consignment to Kyrgyzstan is an achievement and a small glimpse.

In this context, Salman Javed, researcher and political analyst, told Sputnik, "Actually, for a year, Pakistan has been planning and trying to bypass Afghanistan by using multiple suitable and accessible routes to reach central Asian countries and Russia to do trade with them and make good relations within a short span of time by using Chinese routes like Khunjerab Pass.”

Moreover, he said to Sputnik, “Owing to security issues and difficulties with the Afghan Taliban* government in the form of not issuing visas to the NLC and its stakeholders to reach CAR countries, Pakistan became compelled to use alternative routes, either Iranian or Chinese routes, to reach CAR countries and Russia for trade purposes.”

Dr. Tughral Yamin, researcher at the Institute of Policy Studies Islamabad, former Dean of the Centre for International Peace and Stability, former Brigadier of Pakistan’s Army, and political analyst, told Sputnik, "This is, nevertheless, a good initiative and will provide Pakistan with more economic opportunities in Central Asia. But Pakistani goods will still be going through Afghanistan.”

However, Fahad Khan remarked, “The recent development is not only a positive development in enhancing bilateral relations, especially in terms of economic cooperation between Pakistan and Kyrgyzstan, but it will also help in modifying the transit trade procedures, and furthermore, it will improve Pakistan's chances of trade and increase commercial activity with other countries in the region, especially with the Central Asian Republics (CARs).”

*The Taliban is under UN sanctions for extremism.
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