Undoubtedly, the prolonged closure of Khunjerab Pass, a critical trading route between Pakistan and China, which has been reopened recently, has caused serious financial hardships to local business community, rendering thousands of workers jobless and causing a significant loss to the country’s economy. However, the closure of the border pass reinforces the fact that the country needs to diversify on its vital links to continue trade and travel activities in the region.
The importance of cross-border trade activities cannot be overstated, particularly so in the case of developing countries like Pakistan. These activities play a vital role in promoting economic growth, creating job opportunities and reducing poverty. It is needless to say that cross-border trade also strengthens regional integration and promotes peace and stability between and among the neighboring countries and their peoples.
As we know that like other countries of the world, Pakistan’s economy heavily relies on its trade relations with foreign countries, particularly China, which is Pakistan’s largest trading partner. In recent years, the total bilateral trade volume between Pakistan and China has been recorded to run in the billions of dollars.
We know that with the closure of Khunjerab Pass, Pakistan’s exports to China have been severely impacted, particularly in the agriculture and textile sectors. The closure of the pass has also disrupted the supply chain, causing a shortage of essential goods and raw materials in Pakistan. Usually, the Khunjerab border pass remains open from April 1 to November 30 every year and remains closed from December 1 to March 31 due to harsh winter conditions and lack of oxygen at high altitudes. Under an agreement, trade and travel activities between the two countries through the Khunjerab Pass commenced on April 1, 2016, and the pass had been closed on November 30, 2019, due to the Covid-19 outbreak.
As reported on these pages, trade and travel activities between Pakistan and China through the Khunjerab Pass resumed on April 3, after remaining closed for three years due to the outbreak of coronavirus.
Foreign Minister Bilawal Bhutto Zardari has congratulated the people of Gilgit-Baltistan on the commencement of trade process at the Khunjerab border pass, which would now remain open throughout the year, and also on the lifting of other import restrictions.
It is also significant to note that the the Gilgit-Baltistan Assembly has passed a resolution regarding the resumption of trade on the Khunjerab border.
The closure of Khunjerab Pass highlights the need for Pakistan to diversify its trade routes and reduce its dependence on a single trading link. Pakistan needs to explore alternative routes to maintain its trade relations with China, such as the Gwadar port, which is part of the China-Pakistan Economic Corridor (CPEC).
The CPEC is a game-changer project that has the potential to transform Pakistan’s economic landscape. The development of infrastructure projects, such as highways, railways, and energy projects, under the CPEC, will provide alternative trade routes for Pakistan.
