ISLAMABAD: Pakistan is actively pursuing the operationalisation of theQuadrilateral Traffic in Transit Agreement to connect its seaports withlandlocked Central Asian states through Chinese territory, positioning thecountry as a vital gateway for regional and international trade. Officialshighlight that ongoing reforms and infrastructure enhancements couldestablish this corridor as the most efficient trade route linking CentralAsia, extending potentially to Russia, with Pakistan’s deep-water ports atKarachi and Gwadar. This initiative gains urgency amid suspended trade withAfghanistan due to security concerns.
The Quadrilateral Traffic in Transit Agreement, commonly known as QTTA, wassigned on March 9, 1995, by the governments of China, Pakistan, Kyrgyzstan,and Kazakhstan in Islamabad. The accord facilitates multimodal transit ofgoods across borders without customs duties on transit cargo, aiming toprovide landlocked Central Asian republics access to warm-water seaportswhile enabling Pakistan to reach resource-rich markets. Initial protocolscovered customs procedures, visas, and transport permits, with theagreement operationalised in 2004 after resolving modalities.
Pakistan’s engagement with QTTA has intensified as an alternative totraditional routes through Afghanistan, where political instability andborder closures have disrupted commerce. The Afghanistan-Pakistan TransitTrade Agreement remains limited, prompting Islamabad to bypass unstablecorridors. Recent developments, including a meeting in Islamabad involvingPakistani officials and Chinese representatives, discussed revitalising theframework under QTTA to streamline transit and customs processes forgreater efficiency.
Infrastructure under the China-Pakistan Economic Corridor plays a pivotalrole in realising QTTA’s potential. Upgrades to the Karakoram Highway,linking Gilgit-Baltistan to China’s Xinjiang region, enable seamlessconnectivity from Pakistani ports northward. Gwadar Port’s developmentenhances its attractiveness for Kyrgyzstan and Kazakhstan, reducing transittimes and costs compared to longer maritime routes. The Khunjerab Pass, nowopen year-round following a 2023 joint announcement, supports consistenttraffic flow.
In 2023, the National Logistics Corporation conducted the first TIRoperation under QTTA, transporting goods from Lahore to Almaty viaSust-Khunjerab and Turgart borders. This milestone marked the agreement’sactivation with the international TIR system, allowing sealed cargo totransit without repeated inspections. Such operations demonstrate practicalviability, with TIR providing guarantees that reduce delays and enhancesecurity for traders.
Reforms are underway to make the corridor competitive, including harmonisedcustoms procedures and improved border management. Officials assert thatthese measures could position the route as superior for connecting CentralAsia to global markets via Pakistan. The corridor’s extension toward Russiathrough existing networks in Kazakhstan and Kyrgyzstan holds promise forbroader Eurasian trade integration.
Pakistan’s economic strategy emphasises diversifying trade partners amidhalted Afghan exchanges following January 20 statements by the primeminister on security lapses. By focusing on QTTA, Islamabad seeksalternative pathways to Central Asian markets, rich in hydrocarbons andminerals, while offering export opportunities for Pakistani goods likepharmaceuticals, rice, and textiles.
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Central Asian interest in QTTA persists, with Tajikistan expressing intentto join in 2017 and Uzbekistan in 2020, potentially expanding theframework. Integration with CPEC’s Phase II priorities on industry,agriculture, and mining could amplify benefits, fostering investment andjob creation along the route.
Challenges include terrain difficulties, seasonal weather, and the need forsustained political commitment among signatories. However, year-roundborder access and TIR implementation address longstanding barriers, withpotential for increased trade volumes if infrastructure investmentscontinue.
The revival of QTTA aligns with broader regional connectivity goals underinitiatives like the Belt and Road, enhancing Pakistan’s geostrategicimportance. As reforms progress, the corridor could significantly boosttransit revenues, estimated in hundreds of millions annually, whilestrengthening economic resilience.
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