Pakistan’s potential to capitalize on sea trade for Central Asia

Abstract

This paper examines how Karachi, Port Qasim and Gwadar can be able to support CAR trade, providing shorter, cost effective routes, in comparison with those in Russian, Iranian and Chinese, supported by projects like CPEC, CAREC, QTTA, the Uzbekistan-Afghanistan-Pakistan railway project as well as associated deals. It evaluates port capacity, the hinterland connectivity, and the Pakistan and CAR trade trends and sectoral export profiles in the recent past and determines the key opportunities in transit, transshipment and value added logistics. Simultaneously, it also outlines the major limitations, such as the lack of security in Afghanistan and in Baluchistan, infrastructural and rail bottlenecks, governance and regulatory challenges, and poor public-private relations in the logistics and shipping industry. The article proposes a step by step policy and investment map. It also involves a regional ocean governance and blue economy framework based on SDGs, green-port and a Pakistan-CAR Blue Economy Forum. Thereby, aligning the standards and harmonize the development of the corridor. It concludes that, having proper reforms in time, improved connectivity and security of the corridors, Pakistan is indeed capable of making its ports the maritime port of choice of the Central Asia.