TOPIC : NORTH-SOUTH TRADE CORRIDOR

Prospect and present & Future

SUBMITTED TO : Dr.SAIF MALIK

SUBMITTED BY : RANA MUHAMMAD DILAWAR

ROLL NO # 01131111032

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Contents
Topic Page No.

Acknowledgment 4

Abstract 5

Introduction 6

Background of North-South Trade Corridor 6

Existing Transport Corridor 6

Concept of North South Trade Corridor 7

North-South Trade corridor and GCAP 7

Conceptual Justification: (Heartland Theory & Rimland Theory) 7

North-South Trade corridors possible route 8

 Road Route 8
 Rail Route 9

Cross continental trade 10

Pakistan and Indian perspective on North-South Trade Corridor 11

Regional Power and North South Trade Corridor

 Pakistan 11
 India 12
 Iran 13
 Russia 13
 China 13

Supra state Actors

 SCO 14
 ECO 14

INSTC ( International North South Trade corridor): 15

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Linkage between North-South Trade corridor And new Silk route 15

New Great Game & North-South Trade corridor 15

Impediments to North South trade corridor : 15

Recommended Strategies 16

Vision 2020 17

Conclusion 18

Bibliography 19

Annex 1 21

Annex 2 22

Annex 3 23

Annex 4 24

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 Acknowledgment

I am very thankful to Allah Almighty who always showers his mercy and kindness upon
me. And I am also very thankful to My teachers Dr.Saif Malik, Madam Kusum Saba for
assisting me and providing me valuable information and material related to term paper.
Special thanks to my dear friends who not always pine for my victory, success and
achievement but for that they never leave me alone even when I am disgruntled , when
due to some stroke of misfortune my dreams shatters and they are always there to give
me a new stimulus to fulfill my dreams and again I muster up courage and work hard
just because of prayers of Parents, Friends etc.

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 Abstract

North-South Trade corridor refers to the route in Asia by which trade can be promoted
from North-South and South-North. The importance of this route has become significant
after the demise of Soviet Union as it heralded a new era of trade as Central Asian
Republic can become the hub of North-South trade corridor while Pakistan, Iran ,India
and China also there to facilitate the trade. And the regional markets can be
transformed into international market and North-South trade corridor not only helped the
landlocked country of this region to integrate in the international economy but also at
regional stability , and development of the region. However although there are problem
such as war torn Afghanistan and extremism which most of the countries facing and no
agreed upon routes so a new Pandora box is open for different states and new Great
game has also enhanced the importance of the North-South trade corridor

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Introduction:

Central Asia is the pivotal instrument in bridging the gap between East and the West
trade (normally through Silk Route) between 3 rd century to 16th century, it pined as a
consequence of emerging Maritime transportation and declining Caravan trade. Now
again the efforts at regional level and global level have been taking place to enhance
the transit trade through this region and different road and railway networks have been
established to breach this gap. North South trade corridor is become very important
because of its rising importance for regional trade particularly for CARS , Afghanistan
and the whole region. North-South Trade corridor not only can enhance a trade
between North and South but also result in share of ideas, culture and tradition across
the region.

Background of North South Trade corridor:

The power vacuum created by the fall of USSR heralded the emergence of New political
order that how the landlocked CARS including Afghanistan could be integrated in the
world economy via easy transportation routes present in South East and South West
Asia. But these newly independent CARS are dependent on old USSR routes in the
North. The turmoil, civil war, poor infrastructure in Afghanistan is posing the main
obstacle to the CARS. And in spite of all this it is believed that alternative routes which
originate at Arabian sea warm water can enhance regional as well as inter-continental
trade.1

Existing Transport Corridor :

The existing Transport corridor mainly road infrastructure highlight the legacy of
Russian-British affray and the succeeding division during Cold war era in this region
(Central Asia). As far as the road and Railway infrastructure was concerned it was
totally Russian Oriented. Which further strengthened dependency of Central Asian
Republic even after their independence. While with the passage of time new trade
corridors were opened i.e. , in the west through Turkey, in the East via China in the
south through Iran, Pakistan and to some extent through India. While route from Central
Asia through Wakhan border crossing Karakoram Highway to Port Gwadar is a viable
idea but still not potentially functional due to Security concern.

Concept of North South Trade Corridor:

1
Aftab, Kazi. (n.d.). Pakistan in Frederick Starr, The New Silk Roads: Transport and Trade in Greater Central Asia,
Central Asia-Caucasus Institute, Silk Road Studies Program, John Hopkins University-SAIS.

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The North South trade corridor concept materialize the idea of trade from Northern
region to the Southern region through different routes i.e. rail ,road and ship mainly from
Southern Asia to Europe , Caucasus, Central Asia .The concept of Corridors involves
the planning and developing of any area which improves the living standard of Human
life , enhancing social interaction. This is what which can better explain the importance
of North-South Trade Corridors for different stake holders generally of the world and
particularly for Central Asian Republic as North-South Trade corridor which was an age
old concept and again attracting the attention of the world and the functional North-
South trade corridor can integrate the land locked isolated central Asian republic with
the international economy thereby heralding a new era of progress and development of
Central Asia and whole the region

North-South Trade corridor and GCAP

Proffesor S .Federick Starr conceptualization of GCAP (The Greater Central Asian
Partnership) to reintegrate CARS with international world economy via conventional
trade route. This is a 1 st major move in USA to craft a regional development strategy.
The major plan is to establish modern road network, railway lines and maritime trade
routes where in the past there were horses and camel caravan routes. The North-South
trade corridor strategy not only promises the reintegration of CARS including Caucasus
and Afghanistan into globalized world economy but also the social, economic and
political development of this region.2

Conceptual Justification: (Heartland Theory & Rimland Theory)

Although GCAP is related to transit trade routes politics and this concept is the
brainchild of earlier conceptualization of economics and geopolitics Halford Mackinder’s
Heartland Theory indicated modern Central Asian region as the arc of competition
among the superpowers of the world while Nicholas Spykman ‘s “Rimland Theory”
strengthened the plan by which heartland expansion could be controlled. GCAP intends
the long-cherished heartlands and Rimlands cooperation. The conspicuous impact of
GCAP centered at linking Central Asia with the World economy while following the
traditional routes (South West Asian) via Afghanistan and leading to Arabian sea while
through Karakoram mountain. And this North-South trade corridor idea is not a new one
as this notion stem from the cross-continental trade which was in vogue between South
Asia, Central Asia and Europe across centuries. It is very striking to know that Southern
Indus river port of Barbarikon,which is now in Pakistan of present day played a major
role for Central Asian trade node within a domain of sea and land “ Silk Routes”. 3

North-South Trade corridors possible route

2
S. Fredrick Starr, “Greater Central Asia Partnership: Afghanistan and its Neighbors,”
Foreign Affairs, July/August 2005, pp.168-174.
3
Ahmed Hassan Dani “New Light On Central Asia” Sang-E-Meel Publisher 1996 P. 10-30

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“Asian Development Bank (ADB) study 2005” depicts 52 potential routes to North-South
Trade corridor. The combination of different borders which are crossing point into
Afghanistan such as Aquina ( Turkmenistan), Shair Khan-Bandar (Tajikistan), Haritan
(Uzbekistan) also depicts of other multiple options 4. However the transport route used
by Kushan dynasty was the same as Pakistan government planning to implement. As a
result of modern infrastructure the linkage between national highways, railways and the
sea ports such as Gwadar, Qasim, Karachi. Modern technology has facilitated
connections between Pakistan national highways, railways, and the port facilities of
Karachi, Port Qasim and Gwadar are also alternative transit route while the newly
envisioned road network connect Afghanistan at several locations i.e. at Jalalabad &
Wakhan, and Western China through the northern Karakorum Highway. Chinese road
network connecting Kyrgyzstan and Kazakhstan provide also an alternate route.
Connected to Kyrgyzstan and Kazakhstan provide a North-South alternative transit
route5 (see map 1). Under a $200 million contract. Afghanistan is potential trade route
for Central Asian Republic via Pakistan getting sea access but security problems ruled
out this option. While North South Corridor through Iran is functional to some extent

Road Route
Northern route via Russia Belarus and Poland is round about : 5790 Km

Southern Route via Iran and Turkey : 7000 Km

6
Pan European Corridor via Russia ,Ukraine and Poland is about : 4600Km

As Kazakhstan is present in the North so it usually uses Northern Route whereas

Southern Route is widely used by Uzbekistan. Transit Cargo from Europe to Tashkent
take place in 15 days while in case of from Bandar Abbas (port of Iran) to Tashkent it
take place round about 7-9 days while from Karachi to Tashkent it takes two weeks. Yet
these two southern routes are not in as much use as compared to Northern route. 7 As
discussed before that Asian development Bank study highlighted 52 trade corridor
through Afghanistan connecting to 5 sea ports on the Southern ports of Iran Pakistan by
linking Tajikistan , Uzbekistan and Turkmenistan. And out of them 31 of these roads
would link through Pakistan. The combined distance of the trade corridor is 8444 M or
13586 Km. It is believed that the origination of these corridors take place from Tajistan
‘s Dushanbe , Uzbekistan’s Tashkent to Turkmenistan’s Ashgabat and passing from
Afghanistan by crossing Shirkhan Bandhar ( Tajikistan) from Uzbekistan (from Hairatan)
and at Aquina from Turkmenistan. 8 The corridor enter in Pakistan by crossing Province
Nanghar of Afghanistan to Torkham Port of Pakistan which further leads to Karachi port
4
William A Bryd “Economic Cooperation in the Wider Central Asia Region” World Bank Publications 2006 P.61
5
McEvedy, Colin, “The Penguin Atlas of Ancient History, Penguin Books”, 1988. P.88
6
William A Bryd op.cit P.55
7
Op.cit, McEvedy,Colin P.55

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and port Qasim. The other route from Afghanistan to Pakistan is through Kandahar
(Afghanistan) at Spin Boldak to Port of Gwadar and Karachi. On the other hands 14
routes connects Tajikistan to Pakistan to the exit junction at Torkham (Pakistan) via
Kabul (Afghanistan).9

World Bank report of 2004 depicted that it takes twelve days from port of Bandar Abbas
( Iran) to Kabul ( through Heart ) to board ship cargo and it cost 120 dollar per ton.
While from Karachi ( Pakistan) to Kabul takes fourteen days and it cost fifty two Dollar
per ton.10

Rail Route
The shortest rail route is southern route than any other Northern or Western route i.e.
railway link from Central Asia to Bandar Abbas. But this route remained under utilized
because of delays in transshipment and delays at Turkmenistan border because of
weather fair road. Pakistan transit route which is further linked to India can bridge the
gap of central Asian Republics Isolationism.

The completion of first major railroad in Afghanistan from Mizar-e-Sharif to Afghan

Hairaton bordering Uzbek border although assisted by Iranian railway network and also
with those routes which are planned by Pakistan and China. And the efficient railroad
will compliment the withdrawal of US from Afghanistan. Rail road is also established by
Iran from Heart to Khaf. In the context of North-South trade corridor China is also
facilitating by establishing railway line Tajikistan- Aynak copper mine (Afghanistan)-
Pakistan. China seems very enthusiastic in establishing railway to Heart from Sher-
Khan Bandar which onward leading to Towraghondi in Turkmenistan. China ‘s lead 2 nd
development phase entertain a view of railway line from Herat to Kabul to Turkham via
Jalalabad in order to get railway connection with Afghanistan. Pakistan is laying great
emphasis to play its role by assisting North-South Trade corridor transit trade by
establishing Railway line from Chaman ( Baluchistan) to Kandahar (Afghanistan). These
initiatives demands heavy investment in railroad network of neighboring countries.
Pakistan is making earnest efforts in completion of these project and assisting China as
Pakistan commenced a train service to Turkey in this way playing important role in
bridging the gap between China and Turkey. So this project of East –West railroad
connection indirectly assist the North-South Trade corridor to achieve its objective by
linking CARs with Afghanistan and Old Silk route. 11
8
Zahid Anwar “Development of Infrastructural Linkages between Pakistan and Central Asia” A Research Journal of
South Asian Studies Vol. 26, No. 1, January-June 2011, pp.103-115
9
Ibid P.39
10
World Bank, Trade and Regional Cooperation between Afghanistan and its Neighbors, By William McCarten and
Javier Suarez, (Washington, DC: World Bank, 2004), 28
11
Nicklas Norling “ Afghanistan's railroad frenzy” Central Asia-Caucasus Institute Analyst 2011
http://www.cacianalyst.org/?q=node/5629/print

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Cross continental trade:
Although different steps have been taken to enhance the circle of continental trade yet it
is never been up to the mark. However CAREC (Central Asia Regional Economic
Cooperation) is broad network of domestic and international institutions which can
invigorate the integration process of CARs into the world trade system
According to the report by Asian Development Bank, alternate trade channel through
Southwest Asia “ with mutual exchange liberalization under the auspices of regional
transit trade covenants , can help liberalize trade policies at much cheaper rates and
create the new world order and can result in the social welfare of the region. 12
However without regional transit trade agreement the integration process of CARS in
the world economy is futile and is disastrous for social welfare program
While the report further state that the development and refurbishing of transport
infrastructure and communication network of the neighboring countries can help in the
integration process of Central Asian republics into the international trade system.

The concept of North-South trade corridor and transit trade routes passing through
Pakistan and Iran through Afghanistan and through China and later on through
Karakorum mountains are being planned in this arena

Fast and rapid liberalization in economic policies of Kyrgyzstan and its influential
inclusion in WTO ( World Trade Organization) depicts that cross continental trade is
incredible without the alternative transit trade routes for means of communication
Region wise Standardized tariff policy is necessary to ensure the regional as well as
continental transit trade. Central Asian Republics potential to trade textiles,
minerals ,energy resources and agriculture all depend on the well developed integrated
trade policies at regional level and access to major sea harbors . Although exports of
different items increased from Central Asian Republic but that is not because of
flourishing trade but because of massive increase in world prices. Asian Development
Bank (ADB) also lay stress on that trade agreement at regional level and Pakistan’s
developed transport infrastructure through Karakorum and Afghanistan can give a great
boom to economies of Central Asian Republic including Afghanistan and Pakistan and
can open wide chances for Central Asian Republics to get membership of World Trade
organization

Pakistan and Indian perspective on North-South Trade Corridor :

If the Greater Central Asian Partnership (GCAP) proposed routes such as (Southern
wards) are developed the construction of additional ports will be needed and the
12
Asian Development Bank (ADB), Central Asia: Increasing Gains from Trade Through Regional Cooperation in
Trade Policy, Transport and Customs Transit (Manila: Asian Development Bank, 2006), p. 9

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proposed and most suitable ports will be likely in Pakistan. The Pakistan has leading
edge over Iranian Chahbar port which is built by Indian assistance as Pakistan has
three functional ports including most important deep sea Gawadar port. Whereas
National Highway road network and Karakorum Highway already constitute the major
important North-South trade corridor. The Indus Highway constitute the 2 nd North-South
Trade corridor in Pakistan and it is being refurbished in 2008. These all Highways
including newly established roads , including the highway between Karachi-Gawadar
and other road network have reduced the overall distance by 500 km for CARS and
Afghanistan transit trade from the territory of Pakistan. The Gawadar is a deep sea port
which is very important for its such a site. The road distance from Kushka
(Turkmenistan) to Gawadar port in Pakistan is only 1200 km while the distance to
nearest port of Odessa ( black sea port of Ukraine) is 3400 km.

When the ties between Russia and India emerged some of the vigilant policy makers
during Ayub era in 1960s envisioned to rehabilitate the Silk Route in order to link the
China with the warm papers of Pakistan coastline. This approach based on the
introduction of Chinese factor in Pakistan s politics just to pursue strategic national
interest

.The Port of Chahbahar is not as much significant as much as Gawadar port It is

because of two reasons
1. As the Chahbahar port is present near to strait of Hormuz and is limited by the
Shallow water.
2. While it is evident that whenever regional and international trade increases more
ports will be needed but existing port facilities are not sufficient.
India has laid much focus on this port because of its traditional rivalry with Pakistan

Pakistan

The question arises that why there is so much debate on Pakistan? So its answer lies in
the realm of North-South trade corridor that Pakistan is the land which is most feasible
for the effective trade between North and South as The Indus port of Barbarikon (60 km
from Karachi) served as a main trade route from Arabian sea to intercontinental trade
going on between China , The Kushans and the Rome. While on the other hands trade
corridors utilized by Kushans are same trade routes as are planned by Pakistan.
However government of Pakistan made earnest efforts to increase number of ports in
addition to Karachi and port of Qasim to facilitate North-South trade corridor.
.Pakistan has taken several initiatives in order to improve its relations with CARS. As
extradition treaty was signed between Uzbekistan and Pakistan in 2002. While on the
other hand government of Pakistan provided loan of worth Ten Million Dollar to

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Kyrgyzstan. The Almaty to Karachi road through Karakorum mountains in working.
Such as (Almaty-Bishkek-Kashgar-Karakorum-Islamabad-Lahore-Multan-Karachi
network). Although trade volume is low in the current situation but the peace in
Baluchistan particularly Pakistan can ensure the wide chances for foreign direct and
indirect investment in this region which can herald the prosperity of Central Asian
Republic as well as Pakistan. Islam Karimov (President of Uzbekistan) during his visit to
Pakistan also laid emphasis on the renewal of old North-South trade corridor. Although
Pakistan ‘s government is not happy on Tajik govt plan to lease a military base to India
yet Tajikistan is also giving importance to Pakistan and listening to the voice of
Pakistan. The visit of Pakistan by Uzbek president Islam Karimov in 2005 also
invigorated the relationship and laid emphasis on the rejuvenation of TAP
( Turkmenistan-Afghanistan and Pakistan gas pipeline ) and if this pipeline is
established it can bring the development in these countries as a result North-South
trade can be increased by mutual cooperation. 13

India
The north –South trade corridor involves moving cargo from India to Iran via maritime
transport. And from Iran to Russia via Caspian sea. India seems to be very dynamic in
arranging meeting of the major players of this region such as Russia, Iran and central
Asian Republics. The Indian’s interest in this project arises because of several factors.
As it was reported on March 13,2012 in “Times of India” that “The project herald a new
era of Multi Modal trade network that links ports of India present on the Western Shore
to Iranian port Bandar Abbas.and connecting it to Caspian sea port of Anzali then on the
Azerbaijan territory through Rasht and Astara leading to Kazakhstan, while further
extending to Russia and reaching to Kiev and Odessa ports of Ukraine while passing
through Mediterranean Ocean and then onward to communist Russia and CARS. This
route can reduce the distance to a significant extent as it takes 45 to 65 days through
Suez route while 25-30 days via Iranian route. The operationality of the route depend on
the good relations of Iran-India-Russia.14 The major reason behind persuasion of this
route by India is its traditional rivalry with Pakistan and the growing instability in
Afghanistan that ‘s why India is reluctant to follow Iran Pakistan India route.

Iran
Iran has gained crucial importance in the arena of North-South trade corridor and Iran is
endeavoring hard to make North-South trade corridor route through its territory and
13
Mansoor A. Malik “The post-AfPak North-South corridor” The Daily Mail, 14 April,2012.
14
Dr Debidatta Aurobinda Mahapatra “The North-South corridor: Prospects of multilateral trade in Eurasia” Russia
and India report, March 14,2012.

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India is also supporting Iran as geostrategic position of Iran connects India with CARs in
a good way while Iran also want to create dependency on its route for Central Asian
Republics so that transit trade through this route can give a boom to Iranian economy
and in its design to create anti-American bloc along with Russia thereby not yielding to
American sanctions. North-South trade corridor also gained importance after Iranian
President visit to India in jan 2003. In this visit MOU ( Memorandum of Understanding
was signed to enhance efforts to build North-South trade corridor. 15

Russia 

Russian president Vladimir Putin before presidential election revealed the idea of
Eurasia Union. The energy rich region with vast geography and with vast resources
besides energy will likely play a crucial role in the emerging new great game in post-
Soviet Eurasian space. Forget the political implications; the economic dimension of this
project will be enough to alter the contours of existing international politics, with
indications of shift and proliferation of global power base. Influential status in Central
Asian Republics is enjoyed by Russia because of having tight monopoly over USSR era
pipeline and they also manifest that main source of revenue of and demand of energy
resources of Central Asian republic is dependent for transport purpose on Russia and
they are under controlled different companies such as Gazprom , Rosneft abd Transneft
which are Russian state owned energy companies. And several deals involving
refurbishing of new pipelines from Central Asian Republic via Russia for transporting of
energy also strengthen in Central Asian region 16

China

Although China is a main stake holder of the functioning North-south Trade corridor but
it is not yielding to the demand of USA & Afghanistan to open the Wakhir border.
Because of the fear of Muslim extremist element which can give a severe blow to assist
the Muslim dominated province of Xinjiang for freedom. The 4923 meter High Wakhir
Pass is the actual passage way between China and Afghanistan. 17
Xinjiang Western China province ( Uyghur Autonomous region) is very important in
integration process. As it provide a link to Central Asian Republics. This Chinese
province accounts for eighty percent of transit trade with CARS. China made noticeable

15
Donald L. Berlin, “India-Iran Relations: A Deepening Entente,” Asia-Pacific Center for
Security Studies, (October 2004), pp. 23.
16
Tabish Shah “Russia vs the Western Powers: The Politics of Energy in Central Asia” Journal of East European and
Asian Studies http://www.jeeas.org/index.php/archive/61-tabishshah?showall=1 Date of access 25 April,2012.
17
The High Road To China http://www.strategypage.com/htmw/htlog/articles/20111012.aspx cited 26 April 2012.

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efforts in refurbishing 616 Kilometer Karakorum highway which connect Chinese
province Xinjiang to Pakistan.
China is making efforts to connect Gawadar to Kandahar and Capital of Pakistan
( Islamabad). China is also interested in building East-West Trunk railway network to
Kashgar from Xinjiang it will enhance the trade in Asia-Pacific region by 300,0000 dollar
per year.

SCO

Shangai cooperation Organization (SCO) is also looking towards North-South Trade

corridor from different perspective besides the Eurasian Union idea. As many countries
which are involved in North-South Trade corridor are a part of SCO.
Shanghai cooperation organization stream line different objective to pursue in that
region which will counter threat of Western countries of gaining influence in these
countries. Nurusultan Nazerbayev (President of Kazakhstan) stated that Shanghai
cooperation organization is an “Energy club” so it again manifest that SCO aimed at
maintaining a club instead of ling cherished dream of Multi-polarity of West
The idea of SCO is making a conducive political environment that Central Asian
republics and neighbors’ on the southern side does not feel any threat as it purpose is
also the development of Central Asian republic and to strengthen regional ties but West
is not happy on all this as it will result in increase Russian influence.
.
ECO
Economic cooperation organization ( ECO ) envisioned the idea of North-South Trade
corridor after the Demise of USSR, between Central Asian Republics, Iran and
Pakistan. Eco also wished to expand it circle to China ( 2 nd largest world economy) and
Turkey ( leading economy in the Muslim world ) 18

INSTC ( International North South Trade corridor):

Multi modal transportation in the shape of INSTC( International North South Trade
corridor) was established on September 12,2000. In st.Petersberg by Russia ,India and
Iran . It aimed at the cooperation in transportation among the member states. It
connects India through Indian Ocean to Iran in Persian gulf and then onward to Caspian
sea and then to St.Petersberg it also widened to make 11 other states its part i.e.,
18
Ibid P.38

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Tajikistan,Turkmenistan,Kyrgystan,Kazakhstan,Turkey,Ukraine,Armenia,Belarus,Syria,
Oman and Bulgaria.

Linkage of North-South Trade corridor and New Silk route :

It is interesting to know about the coincidence that the aim and objective of North-South
Trade and New Silk route is same and in fact both supplement each other. As the
purpose of New Silk route is to protect Afghanistan from the gruesome effect of
Terrorism and to make economic and business activities an effective counter
insurgency Campaign and to give a boom to economic activity so that religious and
political extremism should be curbed and regional and cross continental trade should be
channelized. Similarly North-South Trade corridor aimed at enhancing trade both at
regional and international level and to facilitate the Landlocked countries to get
connected with International economy.

New Great game and North-South Trade corridor:

After the Soviet Union disintegration the term Great Game shifted to New Great Game
and New Great Game reflects the tug of war going on between USA,UK,NATO
countries against Russia ,China and SCO countries for power, hegemony , influence.
The North-South trade corridor is a part of New Great Game

Impediments to North South trade corridor :

Some of the major impediment to North-South Trade corridor are given below

1. The biggest obstacle in the way of continental trade through North-South trade
corridor is the escalating tense relationship between the major actors related to
North-South trade corridors i.e. between India-Pakistan , between Pakistan-
Afghanistan. It was believed that Post-Soviet era would open wide chances of
cooperation between India and Pakistan and they will put an end to their
traditional rivalry but it proved wrong as the Détente process between India and
Pakistan is very slow because of logjam on Kashmir, Sir Creek, Siachen and
several other issues. Despite the fact that tourism and trade is increasing but
both countries are vulnerable to security threats. However different factions from
Afghanistan and India are alleged to be supporting insurgency in Baluchistan. On
the other hands several alleged armed groups are operating in Baluchistan who
drive their support from Indian consulates in Jalalabad and Kandahar and
Zahidan. India is also alleged of being supporting to anti-Pakistan element in
Sindh and Kyber Pakhtoonkhwa. While these groups are working in the guise of
social and human rights organizations

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 2. The North South trade corridor linking Central Asian republics to the the
international economy has been also facing severe difficulties because of their
too much dependency on USSR transportation built infrastructure and they are
lagging behind due to unawareness about importance of old communication
routes to sea via Pakistan or Iran.19

3. The poor and fragile infrastructure of Afghanistan and Karakorum region is also a
hurdle . The major transport network in Afghanistan is the Ring Road Network as
it connects the big cities such as Kabul ,Heart ,Mizar-i-Sharif, Kandahar and it is
2700 km. Afghanistan’s road network disrupted during the civil war and
according to survey report of 2002 54% of roads where in fragile situation. 20

4. The institutional, bureaucratic and political barriers. There is no proper

coordination among different institutions of these states which is also posing
impediment to the functionality of North-South trade corridor.

5. North-South Trade corridor ‘s integration program of the region is also confronted

by narcotic trafficking ( opium cultivation and its business) , terrorism , high cost
of infrastructure and also due to increasing cost because of restrictive trade
policies, inefficient regulatory and legal system , porous borders, lack of efficient
transport facilities etc.

Recommended Strategies:

1. Pakistan is facing severe energy crisis so first of all this problem should be
addressed sincerely. Pakistan as need all kind of energy resources e.g Hydro,
fossil fuels, coal, oil and gas . in this context China has shown deep interest in
developing the energy trade corridor.21

2. The problem of Afghanistan must be settled because the security in Afghanistan

can ensure efficient North South trade corridor. For this first of all stake holders
must be persuaded to come on a consensus. Cultivation of opium should be
controlled and educational policy must be derived for the enlightenment of the
people so that war culture should be changed to peaceful modern culture.

19
Op.cit, Aftab Kazi., P.102-103
20
Grant Curtis, “Building Roads, Changing Lives”, Asian Development Bank Press Release, January 2008.
http://www.adb.org/Documents/Periodicals/Impact/AFG/200801.asp (accessed 25 April 2012)
21
National Trade Corridor Improvement Program 2011 report http://ntcip.gov.pk/index.php?
option=com_content&view=article&id=47&Itemid=53

16
 3. NATO forces should be called back and local administration should be strong
and Pakistan should persuade and assist USA in its withdrawal from
Afghanistan.

4. Pakistan and India should put an end to their animosity and it is in the better
interest of the region and they should focus on mutual development program
particularly the development of this region.

5. Road network of Pakistan should be refurbished up to the mark and the security
of the routes should be ensured so that speedy transit trade can be materialized
through North-South trade corridor.

6. New institutions , supra state actors should play their role to unlock the
potentiality of North-South Trade corridor.

7. All the countries should develop effective security system and security forces
should be trained according to modern standard. Afghanistan National Security
Force (ANSF) , Afghanistan National Army ( ANF) , Afghanistan National Police (
ANP) Pakistan border Forces should be trained so that regional security concern
should be addressed and security umbrella should be provided to North-South
Trade corridor.

Vision 2020
The effective and gently integrated transport system can give a boost to the
development of this region as well as in poverty alleviation while if security to transit
trade is provided and road infrastructure is developed it can increase Pakistan
export to round about 259 Billion United State Dollar by 2030.

If these corridors will be developed up to the planned level it will enhance the
regional trade by 160 %.22 If the trade is increased through North-South trade it will
give this a wider technological benefits and high foreign exchange revenues. North-
South trade corridor will be able to facilitate intercontinental trade more fluently. And
this continental trade will not only open Russian trade with S.A but also Chinese

22
Zahid Anwar, Op.cit., P.39.

17
 transit trade with European countries and particularly it will connect the Central
Asian Republic with the International Political economy and North South Trade
corridor will bring prosperity and development to the region.

Effective training of the regional security forces can better ensure the vision 2020 as
a new epoch of success for the regional and international trade through this region.

Conclusion :
North-South Trade corridor has gain worldwide importance due to the rising energy
need of the world as Central Asian Republics have gain worldwide importance different
countries are looking to invest in that region and to reconnect this region with the
international trade market as it will not only result in the development of the region but
also the development of the whole continent. And North-South. Although this route is
not utilizing up to the mark because of regional instability, terrorism, poor infrastructure.
But the prospects of North-South trade corridor are very important as Trade corridor can
not only aimed at increasing trade but it can act as a preventive measure against the
Terrorism , extremism , poverty which is very rampant in this region. So it is the need of
the hour for the concerned states to develop their infrastructure on emergency basis
and try to establish communication network by joint program so that trade can be
facilitated.

Bibliography.
.
1. A Bryd “Economic Cooperation in the Wider Central Asia Region” World Bank
Publications 2006 P.61

18
 2. Ahmed Hassan Dani “New Light On Central Asia” Sang-E-Meel Publisher 1996
P. 10-30

3. Asian Development Bank (ADB), Central Asia: Increasing Gains from Trade
Through Regional Cooperation in Trade Policy, Transport and Customs Transit
(Manila: Asian Development Bank, 2006), p. 9

4. Donald L. Berlin, “India-Iran Relations: A Deepening Entente,” Asia-Pacific

Center for Security Studies, (October 2004), pp. 23

5. Dr Debidatta Aurobinda Mahapatra “The North-South corridor: Prospects of

multilateral trade in Eurasia” Russia and India report, March 14,2012

6. Grant Curtis, “Building Roads, Changing Lives”, Asian Development Bank Press
Release, January 2008.
http://www.adb.org/Documents/Periodicals/Impact/AFG/200801.asp (accessed 25 April
2012)

7. McEvedy, Colin, “The Penguin Atlas of Ancient History, Penguin Books”,

1988.P.88.

8. Mansoor A. Malik “The post-AfPak North-South corridor” The Daily Mail, 14

April,2012

9. National Trade Corridor Improvement Program 2011 report

http://ntcip.gov.pk/index.php?
option=com_content&view=article&id=47&Itemid=53

10. Nicklas Norling “ Afghanistan's railroad frenzy” Central Asia-Caucasus Institute

Analyst 2011 http://www.cacianalyst.org/?q=node/5629/print

11. S. Fredrick Starr, “Greater Central Asia Partnership: Afghanistan and its
Neighbors,”Foreign Affairs, July/August 2005, pp.168-174

12. Tabish Shah “Russia vs the Western Powers: The Politics of Energy in Central
Asia” Journal of East European and Asian Studies
http://www.jeeas.org/index.php/archive/61-tabishshah?showall=1 Date of access
25 April,2012The High Road To China.

13. The High Road to China

http://www.strategypage.com/htmw/htlog/articles/20111012.aspx cited 26 April 2012

19
 14. World Bank, Trade and Regional Cooperation between Afghanistan and its
Neighbors, By William McCarten and Javier Suarez, (Washington, DC: World
Bank, 2004), 28

15. William A Bryd “Economic Cooperation in the Wider Central Asia Region” World
Bank Publications 2006 P.61

Annex 1

20
The red colored dashed line from Gawadar to China and alongside it is the other red
colored zigzag dashed line indicates the probable oil pipelines from Gulf to Gawadar to
China. These pipelines and energy corridor dream has not been realized due to USA,
NATO and Indian involvement in the region in the cover of terrorism

Annex 2

21
This is showing how much Pakistan is convienient for Central Asian Republic because
of its excellent geographical position

Appendix 3

22
Annex 4

North-south trade corridor from Indian and Iranian perspective

23
24