CPEC and Kazakhstan’s vital role in regional trade

The Republic of Kazakhstan has opened doors for the expansion of trade with Pakistan that will further connect them to the glob­al market and unlock opportunities for both. Kazakhstan, a sig­nificant linchpin of China’s BRI borders Turkmenistan, Uzbekistan, and Kyrgyzstan to the South, China to the East, and Russia to the North. This Central Asian Republican state is also bounded by the Caspian Sea on its one side. From a geopolitical lens, the strategic position of Kazakhstan is pertinent as it offers key opportunities in the Trans-Caspian International Transport Route, strengthening its regional trade and energy transpor­tation. This transport route has modeled and positioned Ka­zakhstan as a critical hub in the international logistics network by connecting Asia and Europe.

In the same vein, Pakistan highly benefits from its strategic location on a world map. At the crossroads of South Asia, Central Asia, and the Mid­dle East, it significantly upheaves its trade, connectivity, and geopolitical standing. This South-Asian country is bordered by China, India, Afghani­stan, and Iran and to the south by the Arabian Sea. Recognizing this strate­gic advantage, the China-Pakistan Economic Corridor provides Pakistan with a platform to build on its national economy and regional connec­tions. Pakistan and Kazakhstan have revived the legacy of the ancient Silk Route. By re-establishing trade through this route, Pakistan transported its first cargo across the Silk Route to Kazakhstan. This was made fea­sible by operationalising the Quadrilateral Traffic in Transit Agreement between Pakistan, China, Kyrgyzstan, and Kazakhstan. It is anticipated that this new route would greatly cut trade expenses and times, enhanc­ing trade relations between the two countries. In addition, in order to promote easier economic exchanges between the two countries, Kazakh­stan has declared the commencement of direct flights to Pakistan which will be resuming after Ramadan. Exploring new corridors between these countries, it is beyond belief that there is no direct train service between Pakistan and Kazakhstan in the 21st century. However, Kazakhstan is ac­tively exploring the potential of transit corridors through Pakistan. It is now being considered if multimodal transit might be provided along the Kazakhstan – Turkmenistan – Afghanistan – Pakistan route to facilitate the efficient flow of products and services, this suggested route aims to maximise the utilisation of currently available corridors.

Indeed, both Pakistan and Kazakhstan are keen on expanding their trade relations. Building routes through venturing into Afghanistan, of­fering the shortest route to the ports of Gwadar and Karachi in Pakistan, and enhancing connection to India, the Middle East, and Africa are all part of Kazakhstan’s strategic goal. This knight’s move across the Asian chess­board will not only benefit Kazakhstan but also it will open doors for re­gional connectivity and economic cooperation. Additionally, Kazakhstan’s aim to construct the Mazar-e-Sharif-Kabul-Peshawar railway transport corridor, an idea proposed in 2018 in Tashkent is now back on track. The goal of this corridor is to make it easier for Central Asia, South Asia, and the Middle East to establish trade with one another. The idea of estab­lishing safe and secure transit between both countries is now achievable as Kazakhstan has started to work with the National Logistics Corpora­tion and Tranzum Courier Services a major government and private lo­gistic companies in Pakistan’s transportation industry, which is an impor­tant milestone. This cooperation guarantees the swift and safe passage of products via Afghanistan from Pakistan to Kazakhstan and vice versa. Ka­zakhstan’s dedication to facilitating safe and effective cargo movement throughout the region is demonstrated by this arrangement.

Although there are several initiatives and a shared desire to improve regional connectivity between Pakistan and Kazakhstan, a number of obstacles have impeded development. There have been several challeng­es, including regional rivalry and Afghanistan’s unstable security envi­ronment. The dream to lay the foundations of regional connectivity is not possible without Afghanistan’s inclusion. The instability in Afghani­stan can trigger instability not only within Pakistan but also throughout the region. Another point to ponder is that the domino effect results in the rise of extremist activities of Tehrik-e-Taliban Pakistan along the Pak­istan border in Balochistan and Khyber Pakhtunkhwa provinces, this se­curity environment is also holding back partner states from establishing trade and projects with Pakistan. Therefore, it is essential to bring peace in Afghanistan so that joint ventures between Pakistan- Afghanistan and Kazakhstan can contribute to flourishing trade and promote coopera­tion. Not to miss, financial limitations have also contributed significantly to slowing down the future projects. The lack of resources required for these projects becomes another challenge for both countries.

To break this vicious cycle of challenges in the face of regional con­nectivity, Pakistan and Kazakhstan should prioritize enhancing infra­structure, streamlining trade laws, and encouraging cross-cultural and cross-economic interactions. Encouraging cultural and economic inter­actions can improve bilateral ties and create opportunities for greater regional connectedness.