ISLAMABAD: The Asian Development Bank on Friday approved a $250 million loan for Pakistan to boost cross-border trade activity with its neighbouring countries by reducing customs processing time for cargo and goods at three key border points of Chaman, Torkham, and Wagah.

The project is part of the ADB-supported Central Asia Regional Economic Cooperation (CAREC) programme, a 10 country-partnership for regional cooperation in transport, energy, trade facilitation, trade policy, and other key sectors of mutual interest.

CAREC member countries are Afghanistan, Azer­baijan, China, Kazakhstan, the Kyrgyz Republic, Mongo­lia, Pakistan, Tajikistan, Tur­kmenistan, and Uzbekistan.

To improve border services with other CAREC countries, Pakistan will streamline transport, trade, logistics, customs, and other trade-related border control operations, ADB announced on Friday.

“Customs operations have improved substantially since 2010, but border point performance has lagged due to poor infrastructure and facilities, weak governance, insecurity and remoteness, and lack of internet access,” said Dong-Soo Pyo, Lead Transport Specialist in ADB’s Central and West Asia Department.

The project will construct modernised border point infrastructure and facilities, compliant with internationally accepted standards in Chaman and Torkham for cross-border Afghan trade as well as in Wagah.

The work will include ICT equipment and connectivity to link each border point with the central customs database, security trade facilitation equipment, and construction of border point infrastructure.

The assistance will help the government establish the Pakistan Land Port Authority to manage national land border points and develop modern administrative and financial procedures so that project facilities remain under the custody and management of a specialised land port operating agency.

The $250 million loan comes from ADB’s ordinary capital resources ($150m) and its concessional Asian Development Fund ($100m), with the government providing another $50m in counterpart support. The project will run for five years, with a target completion date of December 2021.

The three border crossing points play an important and strategic role in Pakistan’s endowments and development potential. However, all of the three points are facing significant economic and security obstacles which greatly impede the achievement of the desired development outcomes.

Improved border crossing point infrastructure, equipment and procedures are required to reduce cargo dwell time and increase throughput.

Published in Dawn, December 5th, 2015