Pakistan in CAREC
- Pakistan joined CAREC in 2010
- Since 2010, $414 million has been invested in transport and trade
- 2 ongoing CAREC projects (1 proposed)
- 1 completed CAREC project
CAREC in Pakistan
Since joining the CAREC Program in 2010, Pakistan has been actively looking for new ways to overcome barriers to growth and to place Central Asia at the heart of trade and commerce in increasingly integrated global markets.
Pakistan is also improving its national road corridors, which serve as routes to the Middle East and South Asia for the country’s northern neighbors. These corridors will eventually be part of a streamlined land transport network stretching from Azerbaijan, in the west, to the People’s Republic of China in the east, and north to Kazakhstan and beyond.
Pakistan’s road network is connected to CAREC Corridor 5, which opens a vital trading link between landlocked Central Asian nations and the country’s warm water ports of Gwadar and Karachi, on the Arabian Sea.
The World Bank has mobilized $26 million in funding a regional cooperation project under the CAREC Program, which complements the government’s efforts to enhance the country’s trade facilities. CAREC’s goal is to establish a modern transport and energy infrastructure that will allow the region to fully benefit from its vast physical and human resources.
In 2014, the Asian Development Bank approved a total of $327 million for the National Trade Corridor Highway Investment Program.
Stronger ties with neighbors to the north through CAREC have enabled Pakistan to import enough energy to make up for its shortages in electricity supplies. In return, Pakistan will offer its mostly landlocked CAREC partners access to its warm water ports on the Arabian Sea, giving them the prospect of greater trade with the Middle East.
Pakistan’s location at the crossroads of Central, South, and Southwest Asia makes it ideally suited to become a hub of economic activity. Better connections between the Middle East and the interior transport corridors that Pakistan can provide through its sea ports, could drive trade, commerce, and renewed prosperity.
Highlights from the Asian Development Outlook 2014:
Macroeconomic and security challenges continue to weigh on the economy. Growth is expected to remain modest in FY2014, largely reflecting fiscal consolidation to deal with high deficits that have caused macroeconomic imbalances. The government has embarked upon a program of fiscal and structural reform, supported by an Extended Fund Facility Arrangement with the International Monetary Fund, to restore macroeconomic balance, relieve energy shortages, and guide the economy toward faster and more sustainable growth. Read more.
The United Nations Development Programme prepares reports on human development in Pakistan.