Pakistan pushes CAREC corridor upgrade ahead of 2027 chairmanship

September 30, 2026 (MLN): Pakistan has called for transforming Central Asia Regional Economic Cooperation (CAREC) transport routes into integrated economic corridors covering infrastructure, logistics, digital connectivity, energy cooperation and climate resilience.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said Pakistan viewed CAREC Corridors 5 and 6 as an opportunity to connect Central Asia to the Arabian Sea while generating trade, investment and economic activity along the routes.

Speaking at the 25th CAREC Ministerial Conference in Ulaanbaatar, Ahsan Iqbal said the focus should move beyond physical road connectivity toward reliable and competitive movement of goods across the region.

He called for completion of the transport chain through upgraded CAREC roads, modern border facilities at Torkham and Chaman, stronger rail freight capacity through the proposed ML-1 upgrade, and efficient connections between dry ports and seaports.

The Minister also proposed establishing logistics and production hubs along strategic routes, including cold storage, packaging, warehousing and light manufacturing facilities.

According to Ahsan Iqbal, such facilities could help convert transit traffic into exports, employment and value creation for communities located along the corridors.

Pakistan also called for a digital corridor across the CAREC region, using the Pakistan Single Window as a foundation for phased digital integration with regional partners.

Ahsan Iqbal said trade documentation should increasingly be processed electronically before consignments reach border crossings, helping reduce delays and repeated procedures.

He also stressed regional energy cooperation and climate-resilient infrastructure, pointing to initiatives such as CASA-1000 as examples of the potential for cross-border energy connectivity.

The Minister said CAREC countries should identify priority cross-border projects, prepare them according to common standards and coordinate investment and construction schedules.

He suggested that the Asian Development Bank could play a role in mobilizing financing, including private-sector investment where appropriate.

Pakistan also called for more coordinated border procedures, compatible operating hours and advance electronic information to reduce repeated checks and improve trade flows.

Ahsan Iqbal said indicators such as border delays, delivery times, local employment and small-business participation should be used to measure the economic impact of regional connectivity.

Pakistan is set to assume the CAREC chairmanship in 2027 and host the 26th CAREC Ministerial Conference.

On the sidelines of the conference, a Memorandum of Understanding was also signed between the CAREC Capital Markets Development Forum and the ASEAN Capital Markets Forum to strengthen cooperation and connectivity between CAREC and ASEAN capital markets.

The agreement is aimed at knowledge sharing, regulatory cooperation and deeper regional financial integration.

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