Pakistan upgrades trade routes and railways to become regional hub

Pakistan is expanding alternative trade corridors that link the ports of Gwadar and Karachi with Central Asian states. Uzbekistan has begun using the new routes, moving agricultural machinery and raw materials across the Gabd‑Ramdan border on the Pakistan‑Iran frontier, while the closure of the Torkham and Chaman crossings in October 2025 prompted the opening of these corridors in April 2026. More than 14,000 metric tons of cargo have already been shipped, and experts estimate the network could generate about $3 billion a year in transit and logistics services if fully operational.

At the same time, the Pakistani government is modernising its rail infrastructure to reinforce its role as a regional trade hub. Prime Minister Shehbaz Sharif urged officials to complete projects such as the Karachi‑Peshawar Main Line‑1 upgrade, the Rohri‑Taftan Main Line‑3, and new Thar‑Coal railway connections. Backed by a $7 billion International Monetary Fund programme, the rail upgrades aim to integrate ports, industrial zones and neighbouring countries, improving freight efficiency and supporting broader economic recovery.