A first-ever cargo carrying trade goods entered Pakistan on Sunday under a new road trade deal with China, a Pakistani customs official said, with local traders describing it as a “happy moment” for the northern Gilgit-Baltistan region.
The development comes days after the two countries opened an international road transport (TIR) route between China’s inland city of Kashgar and the Pakistani capital of Islamabad, aiming to enhance cross-border trade.
This is the first inaugural TIR trade route between China and Pakistan that highlights a fresh mode of cross-border transport for Xinjiang and potentially setting a precedent for future trade routes within the China-Pakistan Economic Corridor (CPEC).
“Two consignments, bound for Afghanistan, have reached the Sost Dry Port under the TIR agreement,” Imtiaz Hussain, an assistant collector at Pakistan’s Silk Route Dry Port (SRDP) Sost, told Arab News.
“The cargo will be cleared on Monday before leaving for Afghanistan.”
Longtime ally Beijing has pledged over $65 billion in building CPEC infrastructure projects in Pakistan as part of China’s Belt and Road Initiative (BRI). The corridor includes a network of roads, railways, pipelines, and ports in Pakistan that will connect China to the Arabian Sea and help Islamabad expand and modernize its economy.
Currently, the total volume of trade between China and Pakistan is above $12.06 billion, up nearly 19 percent as compared with 2021 when it stood at $10.14 billion due to COVID-19 pandemic.
Speaking to Arab News, Imran Ali, president of the Gilgit-Baltistan Chamber of Commerce said the new trade route would bring prosperity to the region.
“This is a happy moment for us. It will bring prosperity to the region and open the door for different kinds of business opportunities in Pakistan,” he told Arab News.
“With the opening of this route, prices of commodities will also be slashed in the future.”
Ali said this would be a “very feasible and shortest way” for Central Asian countries to connect with China. “The opening of this route is a good omen for Pakistani traders,” he added.