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Historic rail link between Pakistan & Russia to boost bilateral trade

Historic rail link between Pakistan & Russia to boost bilateral trade

by Arshad Khan
December 5, 2024
in Economy
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The direct rail corridor will reduce transportation costs by cutting down travel time and reliance on more expensive sea and air routes.

Historic rail link between Pakistan & Russia to boost bilateral trade. A historic rail connectivity project between Pakistan and Russia is set to begin, with the inaugural test cargo train expected to arrive in Pakistan by March 2025. The two countries recently signed a protocol in Moscow, marking a significant step toward improving trade relations.

The new rail link will follow a route through Turkmenistan and Iran, entering Pakistan via Taftan. This development promises to enhance bilateral trade by offering an efficient and cost-effective transportation corridor for goods. A senior official from Pakistan, speaking from Moscow, explained that the train’s journey from Russia will take approximately 2-3 weeks. However, some logistical hurdles, such as appointing customs officials at Pakistan’s entry points, are still being addressed.

Sardar Awais Ahmed Khan Leghari, who led the Pakistani delegation at the recent Inter-Governmental Commission (IGC) meeting, confirmed the agreement on rail connectivity, though he clarified that a formal Memorandum of Understanding (MoU) is yet to be signed. The MoU will require approval from Pakistan’s federal cabinet.

Once operational, the rail link will facilitate the transport of a variety of goods. Russia will be able to export oil, natural gas, machinery, steel, and industrial goods to Pakistan, while also gaining access to Pakistan’s textiles, food products, and agricultural exports. Key items such as rice, wheat, and cotton from Pakistan will be able to reach Russian markets more efficiently, alongside manufactured goods and electronics.

The direct rail corridor will reduce transportation costs by cutting down travel time and reliance on more expensive sea and air routes. Currently, an operational rail link exists between Turkmenistan and Iran, which connects Serkhetabat (near the Turkmenistan-Iran border) to Mashhad in Iran. Iran and Pakistan are already connected via the Zahedan-Mirjaveh railway, linking the Iranian city of Zahedan to Pakistan’s Mirjaveh border town, further facilitating trade and passenger movement.

This rail initiative is expected to pave the way for greater economic cooperation and trade between the two nations, offering a seamless route for the exchange of a wide range of goods.

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