Trade Facilitation Network (TFN) –

February 2026

1. Context: Diplomatic Momentum

In early February 2026, Pakistan hosted the Presidents of Kazakhstan and Uzbekistan in back-to-back visits within 48 hours, highlighting strong political support for regional connectivity initiatives. These visits complement ongoing discussions on the USD 7 billion Pakistan–Kazakhstan railway project, reinforcing the strategic imperative to operationalize north–south trade corridors.

• Kazakhstan emphasized expanding bilateral trade and logistics cooperation along the north–south axis.
• Uzbekistan focused on regional integration, transit facilitation, and access to Pakistani ports.

These high-level engagements create a timely opportunity to move from conceptual railway planning to fully operational multimodal corridors.

2. From Railway Investment to Regional Corridor

The USD 7 billion railway project established a physical and institutional backbone connecting Pakistan and Kazakhstan. However, rail alone is insufficient to deliver regional trade integration. Operationalization of the Kazakhstan–China–Pakistan Corridor requires:

• Multimodal connectivity linking Central Asia, western China, and Pakistan

• Active utilization of the Quadrilateral Traffic in Transit Agreement (QTTA)

• Alignment with CAREC Corridors 5 & 6, ensuring institutional legitimacy and practical frameworks

This corridor also supplements access for Tajikistan, Uzbekistan, and Kyrgyzstan, while integrating China’s western provinces (Xinjiang, Gansu, Qinghai) into regional trade flows, supporting broader BRI objectives.

3. CAREC Framework Alignment

The corridor leverages CAREC transport and trade facilitation strategies:

Corridor Scope & Relevance to the Corridor

• Corridor 5: East Asia–Middle East–South Asia – Connects western China to Central Asia and

• Corridor 6: Europe–Middle East–South Asia – Links Kazakhstan, Uzbekistan, Tajikistan to South Asian ports (Karachi, Gwadar)

Operational alignment with CAREC provides:

• Regulatory and institutional legitimacy
• Policy coordination for cross-border trade
• Access to development and financing support

4. Quadrilateral Traffic in Transit Agreement (QTTA)

The QTTA (Pakistan, China, Kyrgyzstan, Kazakhstan) is formally operational, but currently underutilized by all parties except Pakistan.

Critical operational requirements include:

• Active cargo flows from all member states

• Shared governance and dispute resolution mechanisms
• Monitoring of key performance metrics: time, cost, and reliability

Without full participation, the corridor cannot realize its economic and strategic potential.

5. Strategic Advantages

For Pakistan

• Reinforces its role as a regional logistics and trade hub

• Operationalizes port and railway infrastructure
• Reduces transit costs for Central Asian trade

For Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan)

• Gains access to Karachi and Gwadar ports
• Integrates landlocked economies into global trade networks
• Enhances logistics efficiency and supply chain reliability

For China (Western Provinces)

• Integrates Xinjiang, Gansu, Qinghai into regional trade corridors
• Supports BRI industrial and export objectives
• Expands cross-border trade and supply chain connectivity

6. Policy Recommendations

1. Full Operationalization of QTTA

Ensure all member states actively utilize the agreement for transit cargo.

2. Corridor Performance Monitoring

Track transit time, cost, and reliability across Pakistan, Central Asia, and western China.

3. Shared Governance and Investment Models

Encourage co-investment, co-governance, and risk-sharing.

4. Leverage CAREC Corridors 5 & 6

Use them as institutional anchors for financing and regulatory support.

5. Integration of Western China

Align industrial hubs and export facilities with corridor logistics and trade flows.

6. SDG Alignment

Monitor infrastructure development, connectivity, and trade facilitation metrics under SDG 9.1.

7. TFN Perspective

The Kazakhstan–China–Pakistan Corridor represents the next operational phase of the USD 7 billion railway project.

(From railway investment to a fully operational north–south economic corridor)

1. From transit rights to shared stewardship and active participation
2. From conceptual frameworks to measurable, SDG-aligned trade outcomes

Pakistan, Central Asia, and western China have an unprecedented opportunity to strengthen regional economic integration, enhance trade flows, and operationalize sustainable logistics corridors.