Pakistan launches landmark trade route linking China to UAE via Khunjerab Pass

This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows a general view of the Kashi Free Trade Zone in Kashi, Xinjiang. (Photo courtesy: NLC)
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Updated 28 December 2024
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Pakistan launches landmark trade route linking China to UAE via Khunjerab Pass

  • Consignment from China is expected to reach the UAE in 10 days as compared to 30 days via sea-route
  • Traders welcome the development, hoping the arrangement will turn Pakistan into a major hub of trade

KHAPLU, Gilgit-Baltistan: In a first, Pakistan’s National Logistics Corporation (NLC) has launched its maiden multimodal Transports Internationaux Routiers (TIR) transportation, linking China to the United Arab Emirates via the Khunjerab Pass, in a move hailed as a “good omen” for Pakistan’s trade and logistics sectors.
The TIR system, an international customs transit framework, streamlines cross-border trade by enabling goods to move through multiple countries with minimal customs interference.
At over 4,600 meters above sea level, the Khunjerab Pass connects Pakistan’s Gilgit-Baltistan region with China’s Xinjiang province, serving as a strategic gateway for trade between South Asia and Europe.
The pass, situated in the Karakoram Range, has only facilitated bilateral trade in the past, with China primarily importing textiles, agricultural products and daily commodities, while exporting plants and herbs.
“This achievement signifies a major leap forward in the operationalization of the China-Pakistan Economic Corridor (CPEC), utilizing the shortest and most efficient route from China to the Gulf region via Pakistan,” the NLC said in a statement.




This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows officials launching country’s maiden multimodal Transports Internationaux Routiers transportation route at the Khunjerab Pass, Gilgit-Baltistan. (Photo courtesy: NLC)

“This milestone also reflects a significant step toward ensuring year-round functionality of the Khunjerab Pass, a vital gateway for regional trade,” it added.
The NLC said the journey commenced with one of its trucks, laden with electronic equipment, departing from Kashgar, China, en route to the Jebel Ali Port in Dubai. The first stop was at NLC Dry Port in Sost, where a ceremony marked the historic occasion, it added.
“The cargo container, after being transported via NLC trucks from Kashgar to Karachi, will embark on the sea leg of its journey to its final destination at Jebel Ali Port,” the statement informed.




This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows a general view of the Kashi Free Trade Zone in Kashi, Xinjiang. (Photo courtesy: NLC)

The consignment from China is expected to reach the UAE in 10 days as compared to 30 days via sea-route.
Traders and local business leaders associated with the Khunjerab Pass welcomed the launch.
“This is a good omen for Pakistan’s economy,” Imran Ali, a former president of the Gilgit-Baltistan Chambers of Commerce, told Arab News over the phone, adding it would particularly benefit the traders in the region and the local community.
“Pakistan will become a major trade hub as China gets access to the Middle East through this route,” he continued. “The economic activities in Gilgit-Baltistan and Gwadar will get a boost and unemployment will end in the region.”
Muhammad Iqbal, president of the Gilgit-Baltistan Importers and Exporters Association, agreed with him.




This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows a Pakistani truck crossing the checkpoint at the Kashi Free Trade Zone in Kashi, Xinjiang. (Photo courtesy: NLC)

“The launching of TIR between China and the Middle East through Pakistan will change the fate of the country,” he told Arab News. “The country will make more revenue and the economic conditions of traders and locals will improve.”
According to the Gilgit-Baltistan Collectorate of Customs, a record revenue of Rs9.5 billion ($34.87 million) was collected from the Sost Dry Port during the first two quarters of the fiscal year 2024-25, compared to Rs6.5 billion ($23.4 million) during the same period last year.
Additionally, the anti-smuggling team confiscated goods worth Rs600 million ($2.16 million).


Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

Updated 23 February 2026
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Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

  • Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
  • The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services

KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.

The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.

Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.

It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.

“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.

“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.

In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.

By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”