China and Pakistan, in a significant move to amplify cross-border trade, unveiled their premier international road transport (TIR) trade route. Stretching from China’s inland city, Kashgar, to the bustling capital of Pakistan, Islamabad, this new corridor radiates potential for reshaping trade dynamics. The ceremonious launch of a five-truck convoy underscores the deep-rooted commitment between the two nations to fortify trade bonds.
Beijing, a staunch ally of Islamabad, has channeled monumental investments into Pakistan’s infrastructure through its ambitious Belt and Road Initiative (BRI). This enduring collaboration gained momentum as China either recalibrated or sanctioned fresh loans nearing $5 billion to Pakistan. These funds empower Islamabad to address the financial stipulations set by an International Monetary Fund (IMF) loan.
Trade relations between these nations have witnessed an impressive upswing, touching a staggering $12.06 billion. This signifies an increase of almost 19% from the preceding year, which saw trade values at a modest $10.14 billion, a decline attributed to the global COVID-19 pandemic.
This groundbreaking TIR route signifies more than just a logistical achievement for China and Pakistan. As detailed by the state-run APP, this endeavor introduces a novel mode of cross-border transport for Xinjiang and hints at the potential blueprint for future trade avenues under the expansive China-Pakistan Economic Corridor (CPEC).
The fruition of this venture can be credited to a consortium of influential stakeholders. Orchestrated by the logistics behemoth CEVA Logistics, the endeavor witnessed pivotal contributions from Kashgar Customs, the Kashgar Municipal People’s Government, and the influential Shenzhen Cross-Border E-commerce Association. Kashgar distinguishes itself as the pioneering inland Chinese city to embrace TIR inland transport services after China’s affirmation of the United Nations ‘TIR Convention’ back in 2016.
TIR’s standout feature is its unwavering dedication to efficient, secure, and economical transit. Founded in 1949, this revered international customs transit system guarantees that cargo remains untouched and sealed during its voyage, ensuring swift transitions at borders and shielding goods from undue tampering. The universal guarantee extended by TIR could also bring down customs costs during international movement, rendering this venture beneficial for all stakeholders.
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