Islamabad, Oct 26,2026: Emerging railway connectivity plans linking Central Asia with Pakistan through Afghanistan could open new opportunities for regional trade and increase cargo movement through Karachi and Gwadar ports, potentially strengthening Pakistan’s position as a maritime gateway for landlocked Central Asian economies, according to experts.
The proposed Kazakhstan-Uzbekistan-Afghanistan-Pakistan railway corridor, being explored under the Central Asia-South Asia (CASA) project, could eventually handle up to 10 million tonnes of cargo annually towards Pakistan’s seaports, according to Kazakh authorities. However, the figure represents projected capacity rather than confirmed freight demand.
Kazakhstan, Uzbekistan and the United Arab Emirates signed a memorandum on September 30 to examine the technical and economic feasibility of the proposed route. According to the Kazakh government, the parties plan to assess railway infrastructure, related logistics facilities and financing requirements, while also considering the formation of a working group to study the project’s technical, economic and financial aspects.
The initiative complements the Uzbekistan-Afghanistan-Pakistan railway project, for which the three countries signed a framework agreement in July 2025 to conduct a joint feasibility study. Pakistan and Uzbekistan subsequently reaffirmed the Termiz-Kharlachi route and joint financing arrangements for the study.
Mujtaba Arshad, Research Associate at the Centre of Excellence for CPEC, Pakistan Institute of Development Economics, told Wealth Pakistan that the proposed railway could create new opportunities for Pakistan’s logistics industry if transportation costs remained competitive and cargo movement was dependable.
He noted that railway connectivity would continue to rely on road transport because goods would still need to move between production centres, warehouses, railway terminals and ports.
According to Arshad, high fuel costs, complicated documentation requirements and uncertainty in cross-border cargo movement could weaken the commercial advantage of a geographically shorter route.
He said Pakistan needed to strengthen highways connecting major freight terminals with Karachi and Gwadar, improve customs clearance procedures and develop secure parking and cargo-handling facilities.
Closer coordination among railway authorities, port operators and road transporters would also be necessary to ensure that cargo moved efficiently across different transport networks, he added.
Usama Haider, President of the Karachi chapter of the All Pakistan Driver and Cleaner Association, told Wealth Pakistan that the proposed railway connections could create significant opportunities for Pakistan’s transport and logistics industry, provided freight movement remained reliable and commercially competitive.
“A railway connection alone cannot guarantee increased trade unless there is sufficient freight demand and arrangements for uninterrupted cargo movement,” he said.
Haider explained that traders and logistics companies would assess the proposed corridor primarily on transportation costs, delivery times, border security and the reliability of cargo movement.
He said the integration of railway and road transport systems would be essential for making the corridor commercially viable. Even when long-distance cargo was transported by rail, trucks would remain necessary for moving goods between railway terminals, warehouses, industrial areas and seaports.
Efficient cargo handling, dependable road connections and competitive freight charges would therefore be as important as the railway infrastructure itself, he added.
The proposed corridor could provide Central Asian exporters with another route to international markets through Pakistan’s ports, potentially expanding opportunities for freight handling, warehousing, transportation and related logistics services.
For Pakistan, greater transit trade could also support economic activity around major transport terminals and port facilities, although the scale of these benefits would depend on actual cargo volumes and the competitiveness of the route.
Haider identified security conditions in Afghanistan, unpredictable border closures and lengthy customs procedures as major challenges that could increase transportation costs and discourage freight operators.
He said Pakistan should prioritise closer coordination between railway authorities, highway operators and the ports of Karachi and Gwadar, alongside improvements in logistics terminals and cargo-handling facilities.
Digital customs procedures, predictable transit rules and shorter clearance times could further improve the corridor’s competitiveness by reducing delays at borders and freight terminals, he added.