Building Bridges through Rails: Pakistan’s Quest for Regional Economic Gains

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Building Bridges through Rails: Pakistan's Quest for Regional Economic Gains

For decades since the fall of the Soviet Union Pakistan has desired economic interconnectivity with central Asia, this has been impossible due to the situation in Afghanistan.  A recent agreement with Afghanistan and Uzbekistan may make this a reality but the path is not without obstacles.

On March 8, Uzbekistan, Afghanistan, and Pakistan signed a memorandum of understanding in Islamabad to create a rail link between the three countries, expecting significant economic gains. This could prove to be a momentous step towards Pakistan’s longstanding ambition of achieving connectivity with the Central Asian states. Notably, this plan synergizes with the planned up-gradation of Pakistan’s railway system through the CPEC project named ML-1, further amplifying its potential returns.

The planned regional rail link will originate from the Kharlachi border crossing in Pakistan’s northwestern region, passing through Mazar-i-Sharif and Logar in Afghanistan, and extending to Termez in Uzbekistan. Designed to accommodate freight and passenger services, this rail line is anticipated to substantially contribute to regional economic growth. Pakistan’s Minister of Railways, Khawaja Saad Rafique, has aptly described the rail link as a “game changer,” connecting Pakistan with Russia and Central Asia. This agreement is part of a series of agreements between Pakistan, Uzbekistan, and Afghanistan, following the establishment of a road link in 2017 and a trilateral chamber of commerce in 2018.

Unlike road links, rail links offer considerable advantages in terms of economic activity. Rail transport allows for significantly higher load capacity compared to trucks, making it especially advantageous for longer distances. Furthermore, trains are more energy-efficient, leading to cost savings and a more environmentally friendly mode of transportation, especially when utilizing hybrid or electric trains. Additionally, the use of trains helps mitigate traffic congestion that often plagues road transportation, and trains generally have higher safety records, with fewer accidents compared to trucks.

The rail link will undoubtedly further benefit Pakistan, as the country is already undertaking efforts to improve its most crucial rail link, the Karachi to Peshawar route. This link handles a significant portion of Pakistan’s freight and facilitates the movement of people between different parts of the country. The CPEC-driven up-gradation of this rail link aims to enhance interconnectivity between major cities in Pakistan by increasing its carrying capacity and reducing travel time. The planned electrification of the line will also contribute to a lower carbon footprint.

Pakistan faces several challenges, with its economy being the most pressing one. The country experiences a shortage of foreign exchange due to low exports and limited foreign investment. Strengthening economic ties with the Central Asian region presents an opportunity to address these issues. Moreover, the shared cultural, religious, and historical ties between Pakistan and Central Asia make it conducive to building stronger diplomatic relations. Furthermore, external connectivity with neighboring regions is crucial for Pakistan’s internal stability. However, while the current regime in Afghanistan has brought some degree of stability, there are no guarantees for its permanence. Additionally, the regime’s protection of the Threek-e-Taliban Pakistan or TTP could pose a risk to projects like this rail link. Another critical aspect that remains unanswered is the question of financing for this project.

While railways already exist in both Pakistan and Uzbekistan, they may require upgrading due to aging infrastructure. However, the situation is quite different in Afghanistan, where railways are scarcely present with the country having a total of 25km of rail track. To realize this ambitious quest for connectivity, a rail link must be built across nearly the entirety of Afghanistan.

In conclusion, the planned rail link between Pakistan, Afghanistan, and Uzbekistan holds immense potential for boosting economic growth and fostering stronger regional ties. Pakistan can effectively address its economic challenges while promoting internal stability by prioritizing economic connections with Central Asia and upgrading vital domestic rail links like the Karachi to Peshawar route. However, the successful realization of these gains will depend on effective implementation and cooperation among all involved nations.