Pakistan redirects Central Asia trade via China, Iran, reduces reliance on Afghanistan routes

Pakistan has operationalised alternative westward trade corridors through China and Iran to access Central Asia, marking a shift away from Afghanistan-dependent routes, Business Recorder reported, citing official sources.

Government sources said Islamabad is no longer relying on Afghanistan as the primary transit route due to security concerns, frequent border closures and higher transaction costs.

Through China, Pakistan is using improved connectivity via the Khunjerab Pass to reach markets in Kyrgyzstan, Kazakhstan and Tajikistan, with officials citing shorter transit times and more predictable logistics.

On the western side, the activation of the Gabd–Rimdan border crossing with Iran in April 2026 has enabled trade flows toward Turkmenistan and Uzbekistan, with the first shipment to Tashkent already dispatched.

Officials said that while routes via Iran may be slightly longer, they offer more consistent operations, lower insurance costs and fewer informal charges compared to Afghan transit.

Authorities noted that routes through Afghanistan, including Torkham and Chaman, have faced repeated disruptions, making them less reliable for commercial trade.

The shift is supported by ongoing infrastructure development, including the Karachi–Peshawar ML-1 railway upgrade, expansion under CPEC Phase II, improvements to the Karakoram Highway and development of Gwadar Port.

Officials said these projects, along with expansion of dry ports and logistics systems, aim to integrate the new corridors into a broader trade network.

Policy planners described the move as part of efforts to improve trade continuity, diversify routes and reduce dependence on a single transit pathway.

While Afghan routes remain in use, officials indicated their role is expected to decline unless operational conditions improve.