ISLAMABAD, Sep 18 (INP): Turkmenistan is set to become the first Central Asian nation to utilize Pakistan’s Gwadar Port under the China-Pakistan Economic Corridor (CPEC) as a draft agreement between the Port of Gwadar and the Port of Turkmenbashi is under review at the cabinet level.
The partnership aims to enhance regional trade by linking South and Central Asia through improved rail, fiber, and transit routes, Gwadar Pro reported on Wednesday.
This deal is expected to reshape trade dynamics in the region, boosting regional trade prospects and instilling hope and confidence in the port’s potential.
Experts believe this strategic development at Gwadar will pave the way for vast regions of Central Eurasia, Afghanistan, Southern Russia, and Southwest China to converge at Gwadar.
The agreement reflects both nations’ dedication to strengthening trade links and promoting broader regional integration.
Khalid Taimur Akram, a Central Asia and regional expert and analyst, noted that this access could offer numerous benefits to other landlocked Central Asian nations and Pakistan.
Located near the Strait of Hormuz, Gwadar is strategically positioned to serve as a transit point for energy supplies to and from Central Asia.
It would provide a shorter and more efficient trade route to the international seas, thereby reducing transportation costs and time for countries such as Uzbekistan, Kazakhstan, and Kyrgyzstan.
He said the trade from Gwadar port to Central Asian Republics (CARs) will reduce the distance to 50 percent as compared to routes through Iran, with freight charges reduced by around 30 percent.
He underscored that with lower costs and shorter transit times, the volume of trade through Gwadar is likely to increase. This can lead to greater economic integration between Pakistan and CARs, fostering stronger regional ties.
Akram also emphasized that by providing an alternative to traditional trade routes, Pakistan’s Gwadar Port will diversify trade options for Belt and Road (BRI) countries including CARs. This diversification reduces reliance on a single route, thereby enhancing trade security.
Turkmenistan’s export statistics highlight its robust trading capacity, presenting a significant opportunity for Gwadar Port to capitalize on.
As per data from trading economics, exports in Turkmenistan increased to USD14.1 billion in 2023 from USD 13.5 billion in 2022.
Exports in Turkmenistan averaged USD5.7 billion from 1992 until 2023, reaching an all-time high in 2023 and a record low of 64.34 USD Million in 1992.
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