Pakistan-CARs ties: The Geo-Economic Vision

Conscious of the growing importance of geo-economics in world affairs, Pakistan in its National Security Policy document focuses also on geo-economics besides other important security issues. It envisages itself as “a melting pot of global economic interests” that would facilitate other countries for carrying out trade with those countries to which Pakistan can provide access for mutual development.

This is a dedicated economic development initiative that focuses on bilateral and multilateral agreements aimed at enhancing Pakistan’s exports. The geographical position of Pakistan offers a connection between ‘north-south, and east-west for South Asia, and Central Asian Republics (CARs), the Middle East, and Africa’. Pakistan is therefore working to strengthen economic and trade relations with Central Asian and Middle Eastern States. Under “Vision Central Asia”, Pakistan is working to implement energy and transit agreements with CARs. Pakistan is also seeking to redefine its partnership with Russia in the field of energy, defense, and trade. Pakistan will need to continue working with these states despite the impediment to benefits. For instance, CARs, Russia, and Pakistan are also partners in achieving common goals of peace and stability in Afghanistan.

Pakistan seeks to have access to Central Asia through Afghanistan to meet its energy requirements and shipment of goods to CARs.  The project is warmly welcomed by the Central Asian states. In 2013, President Xi Jinping introduced the idea of BRI during his visit to Tajikistan. In this perspective, in March 2016, the then president of Turkmenistan, Gurbanguly Berdimuhamedov also stated that “The CPEC is a project which will ensure development and stability in the region,”

China-Pakistan Economic Corridor (CPEC) is a vital project under China’s Belt and Road Initiative (BRI), officially launched in 2015. CPEC “fits perfectly with Pakistan’s geoeconomic paradigm”, as CPEC can play a major role in promoting trade, and economic integration among China, Pakistan, Iran, India, Afghanistan, and Central Asia. Pakistan-Central Asia relations will achieve greater heights through CPEC, as this mega project will promote economic and trade linkages, providing a short route to the sea to many CARs. The project will provide easy access from China to Central Asian states as well. At present, the CARs states like Kazakhstan, Kyrgyzstan, Turkmenistan, and Uzbekistan export their products through Russia to European markets. With the Russia-Ukraine conflict, the CARs export sector may be affected, as CARs use Russia and Belarus routes to reach European markets. In this context, CPEC will provide an alternate route for CARs through Afghanistan, Pakistan, and China.

The CARs states are landlocked, and CPEC will not only give them access to the Indian Ocean for imports but will also provide a convenient channel for the export of their oil and gas to Europe. For this purpose, CARs can use routes through Afghanistan and Pakistan. Afghanistan has shown a willingness to participate in the CPEC project.  The CARs can easily ship their products to the Middle East, Europe, and other regions through Pakistan’s Gwadar seaport.

In the eventuality of a blockade of the Persian Gulf in a conflict situation, Pakistan’s Gwadar seaport will provide an alternate route. CPEC will also shorten the delivery time for Russia by about 20 days to reach South Asia, North Africa, and the Middle East. Russia can save millions of dollars on its shipments through Gwadar as compared to using the old trade route.

The success of CPEC would depend on ensuring the security of the CPEC route. The geographical position of Pakistan is central, as the CPEC is considered a flagship project of China’s Belt and Road Initiative. The corridor is located at the intersection of three regions i.e., PR China, Central Asia, and South Asia. The CPEC is expected to benefit the economy of  Pakistan as well as that of  Central Asian states. CPEC will also help the regional economies to develop their energy, and infrastructure sectors

CPEC remains highly promising to countries in terms of potential economic development. However, security remains the key concern for China, Pakistan, and CARs, besides, internal security in Afghanistan, is the critical factor in the successful extension of CPEC to CARs.

CPEC is not a project whose benefits are to be only shared among a few states, but other regional and extra-regional states are also welcome to join the project.  Central Asia has huge energy resources, and China and Pakistan have immense energy needs that can be met by increasing trade with CARs. Moreover, the CPEC has the potential to transform the economic and political order in the region through the development of trade routes, political cooperation, and cultural interaction. Therefore, CPEC is not only vital for China and Pakistan but also provides a strategic opportunity for CARs.

Besides the CPEC, Pakistan, and CARs have worked on other initiatives, such as Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. Tajikistan and Pakistan are strengthening cooperation through organizations like the Economic and Commercial Organization (ECO), International Trade Organization (ITO), Shanghai Cooperation Organization (SCO), and Europe Asia Economic Commonwealth, etc.

This article was published in the World Geostrategic Insights (WGI) on July 15, 2022. https://wgi.world/pakistan-cars-ties-the-geo-economic-vision/