Central Asian Trade

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2024-11-28T05:46:03+05:00

Despite numerous engagements, bilateral visits, memoranda of understanding, and frequent rhetoric about long-standing cultural and historical ties, trade between Pakistan and the five Central Asian countries (CAC) remains stagnant. Pakistan’s exports to the CAC registered a meagre growth of 1.9% during the first four months of the current fiscal year compared to the same period last year. Similarly, imports from Tajikistan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Kazakhstan remain minimal.

This stagnation stems from two primary factors. While there is evident political will to enhance trade volumes and a strong economic rationale—Central Asia’s need for access to a seaport and Pakistan’s desire for proximate trading partners with shared cultural and historical linkages—the lack of tangible implementation renders these discussions futile. Without concrete actions, agreements remain theoretical, revived only when diplomats and dignitaries visit.

The obstacles to increasing trade are clear. First, most trade routes must pass through Afghanistan or Iran—countries grappling with internal instability that complicates long-range commerce. Second, Pakistan’s border regions with these nations, particularly in Balochistan and Khyber Pakhtunkhwa, are plagued by persistent turmoil. Terrorist attacks, separatist movements, and weak state control make the safe and reliable transfer of goods a significant challenge.

This issue reflects the broader impact of Pakistan’s internal instability on its external diplomacy and economic ambitions. The failure to effectively curb terrorism and establish control in these regions undermines not only trade but also the broader vision of economic development. Until Pakistan achieves stability in Balochistan and Khyber Pakhtunkhwa, the aspiration for robust trade and economic progress will remain an unfulfilled dream.

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