ISLAMABAD: An international road transport (TIR) route opened between China’s inland city of Kashgar and the Pakistani capital of Islamabad this week with the first convoy of five trucks departing at an inaugural ceremony, with an aim of enhancing cross-border trade.
Longtime ally Beijing, which has pledged over $65 billion in building infrastructure in Pakistan as part of a Belt and Road Initiative (BRI), has in recent months either rolled over or granted new loans worth around $5 billion to Islamabad to fulfill financing requirements of an International Monetary Fund (IMF) loan.
The total volume of trade between China and Pakistan is above $12.06 billion, up nearly 19 percent compared with 2021 when it stood at $10.14 billion due to Covid-19.
This is the first inaugural TIR trade route between China and Pakistan, “highlighting a fresh mode of cross-border transport for Xinjiang and potentially setting a precedent for future trade routes within the China-Pakistan Economic Corridor (CPEC),” state-run APP reported.
“The Kashgar-Islamabad TIR route is a collaborative endeavour involving Kashgar Customs, the Kashgar Municipal People’s Government, and spearheaded by CEVA Logistics [global logistics company] with support from the Shenzhen Cross-Border E-commerce Association. Kashgar is the first inland Chinese city to adopt TIR inland transport services following China’s ratification of the United Nations “TIR Convention” in 2016.”
Established in 1949, the international customs transit system TIR is characterised by streamlined, safe and economical procedures under which cargo remain sealed for the entirety of the transit, reducing potential delays at border crossings and minimizing the risk of cargo interference.
Additionally, the TIR’s unified international guarantee can potentially reduce additional customs expenses during cross-border transportation.
