Strategic connectivity through CPEC may transform Afghanistan into a vital trade hub for Central, South, and West Asia, says Pakistan-China Chamber
Lahore, August 22 (PPI): If Afghanistan is fully integrated into the China-Pakistan Economic Corridor (CPEC), its economy could grow by as much as 6% annually, according to the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI). This development would position Afghanistan as a key trade gateway linking Central Asia, South Asia, and the Middle East.
Speaking at a think tank session at the PCJCCI Secretariat, acting President Zafar Iqbal called CPEC a “game changer” for Afghanistan. He noted that the corridor could transform the landlocked nation into a land-linked regional hub, connecting it through infrastructure, trade, and logistics to regional economic centers.
With plans underway for Uzbekistan, Tajikistan, and other Central Asian countries to utilize Gwadar Port, the opportunities for Afghanistan’s transport and infrastructure sectors could be vast, Iqbal said.
The PCJCCI highlighted that Afghanistan, being in proximity to markets with over 3 billion consumers, has the potential to become a central player in future Eurasian trade routes. According to World Bank estimates, improvements in trade facilitation, infrastructure development, and mining could collectively push GDP growth to 6% per year.
One of the major projects discussed was the Kabul–Peshawar railway line, part of a broader strategy to link Afghanistan with Gwadar and Karachi through over 3,000 kilometers of road and rail corridors, integrating it into the extended CPEC network.
Access to Gwadar Port could reduce Afghanistan’s import-export costs by 30–40% compared to its current northern routes or through Iran. The port currently handles 13 million tonnes annually and is being expanded to support up to 100 million tonnes.
The agriculture and livestock sectors—which sustain over 60% of Afghanistan’s population—stand to benefit significantly from improved irrigation systems, logistics, and market access. Targeted investments could double agricultural output within five years, PCJCCI suggested.
The Chamber also emphasized Afghanistan’s vast untapped mineral wealth, valued between $1–3 trillion. This includes 2.2 billion tonnes of iron ore, 60 million metric tonnes of copper, and substantial lithium and rare earth element reserves, which could attract foreign mining companies under a CPEC-aligned processing framework.
Industrial development will revolve around Special Economic Zones (SEZs), which are projected to create over 150,000 direct jobs through manufacturing units, logistics hubs, agro-processing centers, and tech parks. If security and investor confidence are maintained, Afghanistan could attract $6–8 billion in FDI over the next decade, the Chamber noted.
Energy access was identified as a critical area. Through regional grid integration, CPEC-linked energy projects could supply Afghanistan with up to 1,000 MW of electricity. Currently, the country imports over 70% of its power, but CPEC’s solar, wind, and hydro initiatives could localize energy production and reduce dependency.
Salahuddin Hanif, Secretary General of PCJCCI, concluded that SEZs will not only offer employment, skill development, and entrepreneurial platforms for Afghan youth but also play a key role in ensuring regional peace and stability.
