Introduction enthusiasm to develop this corridor and extend it to

more Central Asian states.

Regional connectivity has become an increasingly
significant phenomenon, especially after the initiation This study is an effort to make the Government of
of Belt and Road Initiative (BRI). The project covers Pakistan realize the importance of this route. CPEC
more than 70 nations, comprises six major corridors, could prove to be the backbone of Pakistan’s growing
and aims at interconnecting many regions of the economy and its future depends on the success of this
world. China-Pakistan Economic Corridor (CPEC), as megaproject. Pakistan must not waste more time and
the flagship project of BRI, has become synonymous energy to wait for Afghan consent and a better security
with regional connectivity since it aims to integrate all situation there to forge closer contacts with Central
adjacent regions. CPEC’s objective of connecting Asia. Current security situation, Indian influence, and
landlocked Central Asian states to the Arabian Sea historical experiences, all prove that Afghanistan is
through Pakistani ports lends it tremendous always vulnerable to security dilemmas. Therefore, it
importance. The security situation in Afghanistan and is in the best interest of all regional states to
the country’s refusal to grant Pakistani goods access operationalize the alternate options without further
to Central Asian states unless Pakistan allows the delay.
same to India put the whole regional connectivity
QTTA was signed by Pakistan, China and two Central
scheme in jeopardy and created an obstacle in the
Asian states, Kazakhstan and Kyrgyzstan, in
successful implementation of CPEC.
Islamabad back in 1995. The allied protocols to the
In a broader perspective, CPEC is not only designed QTTA signed in 1996 include ‘Protocol on custom
to provide advantages of connectivity to China and procedures for traffic in transit’ and ‘Visa regime’.
Pakistan, it is meant for the whole region. However, Furthermore, ‘Protocol on establishing system of
Pakistan’s unique geographical position presents an international road transit permit for traffic in transit
important alternate route through China. Long before among the contracting parties’ and ‘Regulations for
CPEC, Pakistan, China, Kazakhstan and Kyrgyzstan implementation of agreement on traffic in transit
signed Quadrilateral Traffic in Transit Agreement among contracting parties’ were signed in November
(QTTA) in 1995 to create a regional trade corridor 1998.1
between Pakistan and Central Asia through Chinese
Some other important trade and transit protocols
territory. Unfortunately, this project has not played
signed by Pakistan would further enhance Pakistan’s
any significant role in enhancing regional connectivity
transit potential. Pakistan joined TIR – Transports
so far. Recently, the member states have shown some
Internationaux Routiers 1975 (International Road
Transports) – in July 2015. TIR is a system that grants

1
Muhammad Shoaib, “Progress on Re-Booting Quadrilateral Agreement on Traffic in Transit,” Director (Road Transport)
Ministry of Communications, Government of Pakistan, https://www.carecprogram.org/uploads/03-Rebooting-QTTA.pdf

[1]
international transit without border check to customs- technical issues in transit and making it economically
sealed vehicles and freight containers to transit feasible.4
countries. Pakistan’s accession to TIR will boost its
efforts in the implementation of QTTA and exploit Recent Developments in QTTA Implementation
Pakistan’s immense transit potential through In April 2015, China and Pakistan, under CPEC,
increased traffic and trade at regional level.2 agreed to construct various infrastructure projects
Pakistan’s inclusion in a number of regional worth approximately $46 billion. These projects
connectivity projects like ECO, Transit Transport include road infrastructure improvement through the
Framework Agreement (TFFA) and CPEC are aimed construction of motorways and upgradation of roads
at enhancing connectivity at inter-regional level by from Karachi and Gwadar on the Arabian Sea all the
expanding transit trade. way to Khunjerab at the China-Pakistan border and
Besides these initiatives, another alternative route onwards to Kashgar city in Xinjiang province of
with great potential of connectivity is emerging at China. An upgraded transport link has already been
regional level between Pakistan, Central Asia and established beyond this point connecting Kyrgyzstan
China (Xinjiang Uygur Autonomous Region, XUAR) and Kazakhstan, while Tajikistan is also provided a
with the implementation of automobile road seasonal access to this route through Pamir Highway.
construction/rehabilitation projects of the Bishkek- It is extremely important for Pakistan to upgrade its
Naryn-Torugart road (an automobile road which is road transport infrastructure rapidly to realize this
part of Central Asia Regional Economic Cooperation connectivity dream as an alternate to the Afghan route
[CAREC] transport corridor development agenda). as soon as possible.
This project has dramatically improved transport Expansion of QTTA
access to/from Kyrgyzstan from/to XUAR, China.
The development of intra-XUAR roads coupled with Afghanistan’s continuous refusal to grant access to
the works on CPEC, part of which is the Karakoram Pakistani traders to Central Asia has caused
Highway, makes it the shortest possible unimodal disappointment in Pakistan. Afghanistan demands a
route so far from Pakistan to Kyrgyzstan via the reciprocal access for Indian goods to Afghanistan,
territory of China. Prior to this, trucks from Pakistan despite knowing the prevailing tense situation
and Kyrgyzstan were unable to legally transit through between Pakistan and India and its security
Chinese territory. vulnerabilities. Despite implementation of CPEC-
related project with the help of China, Pakistan was
Moreover, China’s accession to international customs unable to access Central Asia. Disappointment caused
transit and guarantee system and the International by Afghanistan’s attitude led the Pakistani
Road Transport Union with its TIR in 2017,3 creates government, in February 2016, to revive QTTA while
opportunities for the fastest possible automobile bypassing the Afghan route in its efforts to connect
transit on the way between Central and South Asia. Central Asia to Pakistan’s deep-water ports on the
Pakistan and Kyrgyzstan have already joined this Arabian Sea without relying on a vulnerable
system. The opportunities emanating from these Afghanistan as a transit corridor. Despite the fact that
projects will show promising results when all border this route is not accessible 12 months a year and is
crossing points in all three countries have been open for seven months only, it is the only alternate
equipped with all necessary information systems. which must be made operational for regional
These include setting up of smooth customs clearance connectivity.
practices, and the efforts of all three governments and
business communities to resolve the remaining

2
Ibid.
3
“China’s accession to the United Nations TIR Convention opens prospects for new international trade routes,” United
Nations Economic Commission for Europe, https://unece.org/press/chinas-accession-united-nations-tir-convention-opens-
prospects-new-international-trade-routes.
4
Zehra Waheed, Roman Mogilevskii, Zalina Enikeeva, Mariia Iamshchikova, and Fizzah Malik, “Opportunities And
Challenges For Agrifood Trade Between Kyrgyzstan And Pakistan,” Food and Agriculture Organization of the United
Nations, Trade Policy Review in Europe and Central Asia, Quarterly Bulletin No. 2, April-June 2020.

[2]
Despite Kabul’s reluctant attitude towards regional volume to Kyrgyzstan is not commensurate with the
connectivity, Central Asian states are poised to join existing potential of Pakistan as an exporter as well as
QTTA to connect with Pakistan and its warm water a transit state.
ports. Tajikistan has formally applied for its
membership. All the member states have given their Pakistan’s Strategy for Access to Regional
consent for Tajikistan’s participation in the project.5 Markets
After finalizing the transit route and formal approval Pakistan and Afghanistan remained unsuccessful in
of competent authority and parliament in Tajikistan, it concluding a transit and trade agreement due to
will become a member state of QTTA and Pakistan’s Afghanistan’s insistence for Indian inclusion in the
deep-sea port of Gwadar will be accessible to transit agreement. Despite knowing the tension in
Tajikistan thus reducing its reliance on Afghan route. Indo-Pak relations, and inherent security threats for
This secure passage will boost trade between Pakistan Pakistan in this kind of arrangement, Kabul’s threat to
and Tajikistan, and it is expected to increase the prevent Pakistan’s access to Central Asia has raised
bilateral trade volume between the two countries up to suspicion in Pakistan and overall disappointment in
$500 million,6 which was only $15 million at the start the region. In this scenario, revival of QTTA has
of the previous decade and saw a meager rise, reaching become obligatory for reaping the benefits of CPEC.
$125 million in 2020.7 QTTA will connect Pakistan’s strategic route of
Similarly, Uzbekistan formally sought Pakistan’s Karakoram Highway from Gilgit-Baltistan region to
support for its accession to QTTA in a virtual meeting Xinjiang, China, thus creating a gateway for Pakistan
between the top officials of both states. After the to enter Central Asia. This has become unavoidable
meeting, Uzbekistan officially requested Pakistan’s for Pakistan whose exports trend is seeing a rise in
support in its quest to join QTTA. Uzbekistan also FY2020-2021 and stood at $25.3 billion10 after
desires Pakistan to share its valuable experience in experiencing a decline of $4 billion over the previous
achieving the Generalized System of Preferences Plus decade. It is imperative to look for new export markets
status. Both states showed their resolve to improve in the vicinity, especially in Central Asia and beyond
bilateral economic relations by increasing trade and in Russia. Kyrgyzstan has shown its willingness to
initiating various joint ventures in agriculture, textile, provide Pakistani traders a route to Russia. At the
pharmaceuticals, tourism and construction sectors. same time, Pakistani ports provide landlocked Central
Their bilateral trade has seen a steady increase in Asian states the closest maritime facilities for trade.
recent years. Pakistan exported goods worth $13.190 Central Asian states mostly depend on seaports of
million to Uzbekistan during financial year 2019 as China, Russia, Turkey, Iran and the Baltic states for
compared to $9.254 million in 2018. Similarly, their trade needs.11
Pakistan’s imports from Uzbekistan remain
insignificant and stood at $5.449 million in financial
Barriers/Challenges
year 2019, up from $3.640 million in 2018.8 With the conclusion of QTTA between Pakistan,
China, Kazakhstan and Kyrgyzstan in 1995, a legal
Pakistan’s current trade with Kazakhstan, which is
framework for transit had already been established.
only $25 million,9 and Pakistan’s insignificant trade

5
Shahbaz Latif (Deputy Director, Ministry of Communication), personal interview, July 8, 2021, Islamabad.
6
“Tajikistan wants to take bilateral trade with Pakistan to $500m,” The Express Tribune, March 19, 2019,
https://tribune.com.pk/story/1932248/2-tajikistan-wants-take-bilateral-trade-pakistan-500m
7
“Foreign trade turnover data Republic of Tajikistan with the Islamic Republic of Pakistan,” Embassy of Tajikistan in
Pakistan, August 14, 2021, https://mfa.tj/en/islamabad/relations/goods-turnover
8
Mubarak Zeb Khan, “Uzbekistan looks to Pakistani ports,” Dawn, May 8, 2020, https://www.dawn.com/news/
1555445/uzbekistan-looks-to-pakistani-ports.
9
Muhammad Rafiq, “Pakistan-Kazakhstan Bilateral Relations,” Daily Times, December 28, 2020, https://dailytimes.com.pk/
706882/pakistan-kazakhstan-bilateral-relations/
10
Ali Ahmad, “Pakistan records highest export of goods in FY21,” Business Recorder, July 21, 2021,
https://www.brecorder.com/news/40104313
11
Zafar Bhutta, “Tajikistan to join Pakistan road link bypassing Afghanistan,” The Express Tribune, February 24, 2017.
https://tribune.com.pk/story/1337274/tajikistan-join-pakistan-road-link-bypassing-afghanistan.

[3]
Some additional protocols were signed later to  Another challenge in this transit agreement is
facilitate the implementation process.12 language. Those truck drivers who are working
on this route do not speak and understand local
The security of the link is well ensured by the transport
languages. All paperwork in Central Asian states
authorization system, which is non-transferable and is
is in local languages or Russian and in Pakistan it
limited to 200 quotas per contracting party. Only
is in Urdu or English. Only limited Central Asian
vehicles with valid documents, including
and Pakistani businessmen know each other’s
authorization, certificates of accreditation and fitness
language and they do not know each other’s visa
and driver’s license, may enter and carry transit traffic
and transit rules and economic system.
into the territory of the contracting parties. Approval
per vehicle is granted for certain dates. Approval  There is no business facilitation center for traders
applies to vehicles for travel, including return loading. to boost imports and exports by QTTA member
states.
The study identified following challenges of QTTA:
 Traders and transporters have to pay additional
 The route map decided under QTTA is not
costs, high duties on goods and have to face
functional for the whole year for trade. There are
lengthy administrative process which cause a
climatic and topographical barriers like heavy
barrier to smooth operation.
snowfall and high mountainous area vulnerable
to landslides that cause a major challenge in  Railway plays an important role in land-based
smooth operation all year. Pakistan’s access to trade. Absence of railway network in Pakistan’s
China through Karakorum Highway is affected norther areas is a major infrastructural challenge.
during extreme weather, mostly from December Moreover, existing railway network in the plain
to April. Similarly, the Chinese border with areas of Pakistan has an outdated railway line and
Kyrgyzstan under QTTA route map through signal system and is not even contributing
Torugart Pass also faces such impediments significantly to domestic trade and thus
during extreme weather from October to April. increasing the burden on road transport.
 The 200 permits is quite a low number; however, Recommendations
the insignificant level of trade makes this number
even more than enough. Unless this route is given The following suggestions will be helpful for the
full attention, the number of permits cannot be enhancement of QTTA:
increased.
 QTTA is important for increasing the regional
 Another challenge faced by traders is that trucks trade and for Pakistan to become the transit state
cannot cross 24/7 the border area between for landlocked countries. Pakistan should
Pakistan and China, and China and Kyrgyzstan. implement this agreement enthusiastically to
harness its transit potential. This is important as
 Time wastage at crossing points due to a lot of Pakistan would be the main beneficiary of a
paperwork, custom inspections and offloading successful QTTA and ultimate success of CPEC
and reloading of heavy cargos which is required at a regional level in the absence of Afghan route
to cross the border areas and check posts in this which is unlikely to be operational in near future.
route plan.
 Transporters face several hurdles to get visa
 There are a lot of problems in issuing visas and under this agreement. All member states should
permits required under this agreement for trucks implement uniform visa policies for truck drivers
drivers. and crew members in QTTA spirit and should

12
Zehra Waheed, Roman Mogilevskii, Zalina Enikeeva, Mariia Iamshchikova, and Fizzah Malik, “Opportunities And
Challenges For Agrifood Trade Between Kyrgyzstan And Pakistan,” Food and Agriculture Organization of the United
Nations, Trade Policy Review in Europe and Central Asia, Quarterly Bulletin No. 2, April-June 2020.

[4]
 adopt more liberal visa policies, which will be  Member states should simplify the whole process
helpful in increasing trade. of permit issuance.
 If member states establish trade houses in each  Member countries should devise a strategy to
other’s country, it would be helpful to regional keep open the QTTA route in all weather
connectivity and increase bilateral trade. conditions.
 Pakistan should propagate and facilitate business  Member states should adopt several steps to
opportunities, market knowledge and route plan enhance QTTA such as customs transit guarantee
and cost under this agreement for Pakistani system, cross-border process management and
traders in Central Asian states. trade facilitation initiatives to improve regional
connectivity.
 Pakistan should enhance capacity building of
business community and transporters regarding  Pakistan can appoint commercial counsellors in
language and other states’ laws and facilitate Central Asia’s main commercial cities.
them in visa and border crossing issues.
The realization of impediments and above-mentioned
 Business community of Pakistan mostly has recommendations will help in tapping Pakistan’s
experience of Western markets; they do not have transit potential. We must realize that Pakistan is not
experience of former Soviet states where Russian a major exporter so the government must work to
is the business language. So, the government of increase the export volume. However, Pakistan’s
Pakistan should facilitate them to learn regional geographical location makes it an all-time significant
languages, especially Chinese and Russian, and transit route for the landlocked states. Uncertainty in
to know societal and business model. Afghanistan should not cause more delay in the
successful implementation of CPEC and in achieving
 All member states should establish logistic points the development goals. Therefore, QTTA must be
at crossing areas which will be helpful in made operational and should be given full attention.
increasing trade and assisting exporters. Pakistan must launch aggressive diplomacy to make
 Members should revisit the custom duties on the member states realize its potential benefit for
goods and other charges which will help to regional development and work together for resolving
increase the trade volume. all problems in its successful execution.

Prepared by:

Dr. Faisal Javaid

Assistant Professor at Department of International Relations,
Federal Urdu University of Arts, Sciences & Technology (FUUAST) Karachi,
and non-resident fellow at Institute of Policy Studies.

Dr. Uzma Siraj

Assistant Professor at Department of Pakistan Studies,
Federal Urdu University of Arts, Sciences & Technology (FUUAST) Islamabad.

For queries:

Naufil Shahrukh
General Manager Operations
Institute of Policy Studies, Islamabad.
[email protected] | www.ips.org.pk

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