Cross-border bus service between Pakistan and China resumes after 14 years 

This handout photo shows a general view of Natco’s bus in Gilgit city, Gilgit-Baltistan on November 12, 2024, ahead of their departure to China. (Photo courtesy: Facebook/Natco) 
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Updated 12 November 2024
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Cross-border bus service between Pakistan and China resumes after 14 years 

  • Gilgit and China’s Kashgar was suspended in 2010 after massive landslide damaged Karakorum Highway’s portion
  • Locals, government officials praise resumption of bus service saying it would enhance trading and travel opportunities

KHAPLU, Gilgit-Baltistan: A Pakistani government-owned company and a leading Chinese transportation organization on Tuesday resumed a bus service connecting Pakistan and China through the high-altitude Khunjerab border pass after 14 years, officials said as locals praised the initiative, saying it would lead to further economic opportunities for them. 
The bus service used to operate on the Khunjerab Pass, which connects Pakistan’s semi-autonomous northern Gilgit-Baltistan to China’s Xinjiang region. It was suspended in 2010 after a massive landslide at Hunza’s Attabad village damaged a 14 kilometer portion of the Karakoram Highway (KKH) connecting the two countries. The landslide killed at least 20 people and displaced 6,000 in the area. 
The damaged road was restored by the GB government while the Northern Areas Transportation Company (Natco), a Pakistan government-owned company, collaborated with the Chinese transportation company Xinjiang-Kashgar Xin Lu Transportation Co. Ltd.,to restore the bus service from Gilgit to China’s Kashgar city. 
“After 14 years, the bus service resumed officially from Tuesday,” Aziz Ahmed Jamali, Natco’s managing director, told Arab News over the phone. “The bus will run for this route twice a week and the fare per passenger is Rs18,000 [$64.69].”
Jamali said at least 320 passengers will be able to travel by the bus service each month. 
“Natco has been serving in Gilgit-Baltistan since 1974 and it carries 500,000 passengers every year,” he said. “It is operating on 40 routes across GB at national and international destinations.”
According to the Trade Development Authority of Pakistan (TDAP), 96 percent of trade between Pakistan and China consists of China’s exports to Pakistan, while Pakistan’s share of exports to China is only 4 percent.
The main items imported from China into Pakistan include electronic items, shoes, garments and spare parts while Pakistan exports gemstones, dry fruits, medicinal herbs and clothing items to the neighboring country.
The Natco official said direct traveling from Gilgit to Kashgar will save traders time and enhance their economic opportunities.
“After a long time, the bus service between Pakistan and China has resumed. It will enhance the connectivity between the two regions,” Iman Shah, special assistant to GB’s chief minister on information, told Arab News over the phone.
Shah described the bus service as an “urgent need” to accelerate travel and trade between Pakistan and China.
“I have also traveled to China from Gilgit in a Natco vehicle in 2003-4,” Shah said. “Now this time we have modern buses and it will be very beneficial for both countries.”
Chinese interests in Pakistan have suffered attacks from separatist groups and religiously motivated militants in recent months. A suicide blast in northwestern Pakistan killed six Chinese engineers in March while last month, a blast near the airport in Karachi killed two Chinese nationals.
Shah said that since Natco was a semi-government company, people would feel safe traveling in its buses from Gilgit to Kashgar.
Locals spoke optimistically of the bus service, saying its restoration would bring in more opportunities for everyone, especially traders. 
Muhammad Iqbal, a businessman, told Arab News he had traveled many times in Natco’s buses before the service was suspended in 2010. 
“The resumption of bus service is a good omen for both countries, especially the people of Gilgit-Baltistan,” Iqbal said. “Hundreds of locals are involved in trade and tourism activities in GB. So this development will open the door of new opportunities and help enhance the connectivity between two regions.”


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 10 January 2026
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IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.