Policy Note | Trade Corridors, Borders & Pakistan’s Moment of Choice.

Policy Note | Trade Corridors, Borders & Pakistan’s Moment of Choice.

DP World’s agreement with Afghanistan to modernise Torkham and Hairatan is not just an Afghan story — it is a direct test of Pakistan’s trade, transit, and port strategy.

For Pakistan, the question is simple:
Will we monetise geography through efficiency, or rely on geography while others monetise it?


Why This Matters for Pakistan

Pakistan remains Afghanistan’s primary maritime gateway via Karachi port, Port Qasim, and Gwadar port. Over USD 1.6 billion in bilateral trade moves annually, yet growth is constrained by border unpredictability, manual processes, and fragmented corridor governance.

Every prolonged closure or clearance delay at Torkham or Chaman pushes traders toward Iranian and Central Asian routes — not by choice, but necessity.

Afghanistan’s move sends a clear signal:
reliability is now a competitive weapon.


Who Wins — and Who Loses

Pakistan wins if:

  • Exporters get predictable clearance
  • Truck turn-around improves
  • Transit cargo becomes bankable
  • Ports gain throughput without new builds

Pakistan loses if:

= Borders remain security-driven, not trade-managed
= Transit rules change without notice
= Informality dominates clearance

The real losers will not be countries — they will be inefficient systems.


DP World vs China: The Lesson

DP World: operations-led, digitised borders, PPP discipline, fast efficiency gains
China: asset-led, railways and ports, long-term connectivity

Pakistan does not need to choose one.
Pakistan must sequence them correctly:

** Operations first to unlock value, infrastructure next to scale it.**

Pakistan’s Way Forward:-

√√Enforce time-release standards at Torkham and Chaman

√√Integrate customs, transport, and security data

√√Make closures exceptional, not routine

√√Link ports with inland dry ports and bonded logistics

√√Align FBR, PSW, ports, NLC, and provinces under one corridor logic

√√Control leakage through tracking and risk-based enforcement


Bottom Line

Afghanistan is repositioning as a transit corridor. Central Asia seeks dependable sea access. Global operators are investing in efficiency, not rhetoric.

Pakistan has the geography.
What it needs now is predictability, professionalism, and policy discipline.

** Trade corridors do not shift overnight — but once they shift, they rarely return.**

This is Pakistan’s moment to convert location into lasting economic leverage.

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