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Economy 13/07/2021 ISMI expert: conference “Central and South Asia: regional interconnectedness. Challenges and Opportunities” will allow “synchronizing watches” on the implementation of the Trans-Afghan corridor project
ISMI expert: conference “Central and South Asia: regional interconnectedness. Challenges and Opportunities” will allow “synchronizing watches” on the implementation of the Trans-Afghan corridor project

Tashkent, Uzbekistan (UzDaily.com) -- For millennia, Central and South Asia have closely interacted politically, economically and culturally. In the past, the regions were connected by the Great Silk Road, through which there was rapid trade in both directions. However, due to objective historical processes, the mutual ties between Central and South Asia have somewhat weakened. At some point in time, the regions developed separately, which did not correspond to the established practice of intensive exchanges between the peoples of Central and South Asia.

Currently, the historical ties between the regions are being revived. This is evidenced by the holding in Tashkent on 15-16 July a high-level international conference “Central and South Asia: Regional Interconnectedness. Challenges and Opportunities” aimed at further deepening economic cooperation in Central Asia with access to South Asia.

One of the key topics of the upcoming event will be the expansion of practical cooperation in the field of transport and transit, including the creation of an effective transport and communication infrastructure linking Central and South Asia.

These projects include the construction of the "Trans-Afghan Corridor" initiated by Uzbekistan. We are talking about laying the Mazar-i-Sharif-Kabul-Peshawar railway with a length of about 600 km, which will connect the shortest route Central Asia through Afghanistan with Pakistan and the Middle East, ensure uninterrupted interregional transport links and give a new impetus to the dynamics of trade and economic exchanges. The forecasted volume of cargo transportation in the first years of operation will amount to 4 million tons with a further increase to 7 million tons per year.

On 2 February 2021, in Tashkent, Uzbekistan, Afghanistan and Pakistan signed a Road Map for the construction of the Mazar-i-Sharif-Kabul-Peshawar railway. The parties have reached an agreement in principle on this project. Its implementation may take up to 5 years, for this it is planned to attract $4.8 billion of credit funds. Russia, China and the United States expressed support for the project.

A number of financial institutions have shown interest in building a railway in the Peshawar direction. AIIB Vice President K. Limitovsky, EBRD Vice President A. Pillow, IDB Vice President M. Mukhtar, World Bank Regional Director for Central Asia L. Burunchuk, ADB Department Director E. Zhukov and Advisor to the President of the European Investment Bank F. Palanza welcomed the initiative to implement the Trans-Afghan Railway project, recognizing its strategic importance in the context of developing regional cooperation, promoting the integration of Central Asian countries into regional and global value chains, and sustainable economic growth and poverty reduction in the region.

According to experts, the implementation of the "Trans-Afghan Corridor" will open up additional advantages for the countries of the region in entering promising markets, and reduce the time and cost of transporting goods between the countries of South Asia and Europe through Central Asia. For example, with the full implementation of the project, the transportation of goods from Pakistan to Uzbekistan will take not 35, but 3-5 days. The distance of transportation routes from Tashkent to the ports of Southeast Asian countries through the port of Karachi is 661 km shorter than through the currently operating Iranian port of Bandar Abbas. Accordingly, this is reflected in transport costs. The cost of transporting one 20-foot container will decrease more than 3 times - from $900 to $286.

Moreover, the trans-Afghan corridor will create unique opportunities for ensuring peace and stability in Afghanistan, stimulating the progressive economic growth of this country. Tens of thousands of new jobs will be created, roadside infrastructure will be built, conditions will be created for the development of rich mineral resources (copper, tin, zinc, iron ore, marble, granite, travertine and others) along the railway route.

Thus, we are talking not only about the creation of a transport corridor, but the formation of an economic corridor. Conditions are being created for the development of the industrial sector, which can become a driver of economic growth. For Kabul, the implementation of this corridor will have a socio-economic effect, expressed in the country’s integration into the system of trans-regional interconnectedness. This, in turn, will increase the interest of external partners in the construction of new infrastructure projects and the development of industrial cooperation.

In general, the high-level Tashkent conference “Central and South Asia: regional interconnectedness. Challenges and Opportunities” will provide a unique platform for discussing the most pressing issues affecting the interests of the two regions. It is also expected to "check the clock" on the implementation of the trans-Afghan corridor project, which should become a kind of bridge between South and Central Asia. Its implementation will lay the foundation for the long-term economic development of the countries of the regions, contribute to the solution of socio-economic and transport-communication problems, and will also make a significant contribution to ensuring regional security.

 

Marat Aitov,

Head of department of the Institute for Strategic

and Interregional Research under the President of the Republic of Uzbekistan

 

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