Pakistan in CAREC

  • Pakistan joined CAREC in 2010
  • Since 2010, more than $1.03 billion has been invested in transport and trade
  • 2 ongoing CAREC projects (1 proposed)
  • 1 completed CAREC project

$810 million ADB loan to help Pakistan address energy shortage

The Asian Development Bank (ADB) has approved an $810 million multi-tranche financing facility to develop Pakistan's power transmission system, to improve the reliability and quality of energy supply, and to meet increasing demand for electricity. Read more

View all CAREC projects in Pakistan

ADB loan to help improve land border point management for enhanced trade

The Asian Development Bank (ADB) has approved a $250 million loan to boost cross-border trade activity with Pakistan's neighboring countries by reducing customs processing time for cargo and goods at the three key border points. Read more

CAREC Regional Improvement of Border Services Project


(Photo credit: ADB)


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.

Key Projects

Second Trade and Transport Facilitation Project

Upgrades in Pakistan's road network are crucial for boosting regional trade flows, which allow the country to benefit from its position as a transit artery for goods passing through its Arabian Sea ports. Read more

As of 2015, more than $1.03 billion has been invested in transport and trade in Pakistan through CAREC, whose 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.

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.

View all Pakistan projects

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Economic Outlook

Highlights from the Asian Development Outlook 2016:
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 full report

More economic and social indicators for Pakistan from the World Bank's World Development Indicators online

Human Development

The United Nations Development Programme prepares reports on human development in Pakistan.