ISLAMABAD, Oct 24: The Central Asia Regional Economic Cooperation (CAREC) programme composed of ten countries including Pakistan, decided on Thursday to develop key road and rail routes linking Central Asia to China and South Asia between now and 2020 to realise the huge trade potential between the three regions.

The plan, endorsed by the CAREC ministers at the twelfth meeting in Astana, Kazakhstan, involves road, rail, logistics, and border facilities projects in priority corridors and requires an investment of $38.8 billion in the coming seven years.

The members of the CAREC are Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. The programme, supported by the Asian Development Bank (ADB) as the secretariat, promotes regional connectivity in trade, transport, and energy to boost economic growth in the region.

In a statement issued at the conclusion of the two-day event, ministers echoed ADB President Takehiko Nakao opinion and called for a more integrated approach to transport and trade.

Representing Pakistan, Minister for Planning, Development and Reforms Senator Ahsan Iqbal said that the Central Asian region will face new challenges in post-2014 scenario when NATO forces withdraw from Afghanistan.

“There is a need to transform billions of dollars war economy into trade and commerce economy by promoting regional connectivity infrastructure projects. Pakistan is developing economic corridors which will bring great opportunities for the region,” he said.

From Brics To Rice ADB’s Nakao said that growing economic importance of emerging market economies is highly relevant to Central Asia.

“Traditionally, we have recognised the BRICS economies - Brazil, Russia, India, China and South Africa,” he said.

“Now, in the context of CAREC meeting, we should look at RICE - Russia, India, China and emerging Europe. Central Asia is right in the middle, the connecting link of RICE. Other large regional economies in the neighborhood, such as Turkey, increase the dynamic “growth potential” of Central Asia as well,” he explained.

Pakistan ‘Uptake Limited’

Meanwhile, CAREC in its latest Corridor, Performance, Measurement and Monitoring (CPMM) annual report carried a special report on Pakistan.

The report states that the country exhibits considerable appeal as a transit route for CAREC countries seeking access to a deepwater port. However, despite the appeal, the uptake is still limited.

Citing examples, the report suggests out that the significant delay at Karachi has to be shortened. Customs formalities are the main reason for the delay, and if expedited, the overall time using this corridor could be reduced.

The report says that for transit traffic, road transporters cannot avoid escort and convoy, either at Quetta or Dera Ismail Khan where much time is spent waiting in queue for convoy formation.

Informal payment is also common for drivers who hope to shorten the waiting time while the escorted convoys move slowly through the challenging terrain.

The report mentioned limitations of Pakistan Railways as another issue. “There is virtually no cargo traffic operating in this railway now which serves passengers only. The 30miles section from Peshawar to Khyber Pass is now not in service, due to lack of maintenance,” the report points out.