Bridging Nations, Driving Prosperity: NLC’s role in Promoting Trade & Connectivity between Pakistan and China

Bridging Nations Driving Prosperity Nlcs Role In Promoting Trade Connectivity Between Pakistan And China

 

As Pakistan and China celebrate 75 years of diplomatic relations, the enduring partnership between the two nations stands as a symbol of trust, mutual respect and shared aspirations for economic progress. What began as a diplomatic relationship has grown into a multidimensional partnership encompassing infrastructure development, trade cooperation, industrial collaboration and regional connectivity.

Logistics, though rarely acknowledged, is the force that turns policy agreements into economic realities. Over the years, the National Logistics Corporation (NLC) has emerged as a central pillar in operationalizing connectivity between Pakistan and China facilitating trade flows and enabling regional economic integration. Through strategic planning, operational innovation and infrastructure development, NLC has played a defining role in transforming the China-Pakistan Economic Corridor (CPEC), a flagship project of the Belt & Road Initiative (BRI), into a vibrant channel of trade linking South Asia, China, Central Asia, Middle East and the wider global markets.

Building the Gateway at Kashgar

A sustainable trade corridor requires operational presence across borders. Recognizing this, NLC established IRU-accredited TIR Logistics Hubs at Kashgar and Tashkurgan, two strategically vital gateways in China’s Xinjiang region to facilitate transit trade operations via China for Central Asian Republics (CARs), Turkiye and the European Union. These hubs provide cargo consolidation, customs coordination and redistribution services thereby reducing transit times and operational bottlenecks for traders operating between Pakistan, China and Central Asia.

Xinjiang is widely regarded as a strategic bridgehead to Central and South Asia. Recognizing its geographic and economic significance, NLC has established international offices in Kashgar, Tashkurgan and Urumqi to facilitate direct engagement with Chinese authorities, business communities and key logistics stakeholders.These offices lead business development activities and serve as points of contact ensuring a physical presence in the region. Taking this a step further, NLC has launched a 100 percent owned logistics company in China enabling management of operations within China and beyond. The company employs Chinese vehicles and drivers where Pakistani vehicles and drivers face operational limitations, strengthening service reliability and expanding business opportunities for Pakistani and regional traders across multiple markets.

An important development in regional logistics is the implementation of a new TIR module at Kashgar Bonded Zone activating the Transshipment Hub. This allows for a change of vehicles in Kashgar: Pakistani vehicles transport cargo up to Kashgar from where it is cross-loaded/cross-stuffed onto Chinese vehicles or containers for onward transportation to CARs, Turkiye and the EU. Additionally, NLC has launched a Cargo Shuttle service connecting Sost with Kashgar facilitating local traders of Gilgit-Baltistan and Xinjiang.

Together, these initiatives have transformed bilateral logistics between Pakistan and China. Trade between Sost and the Xinjiang region has grown manifold and cross-border transportation has shifted decisively from conventional and non-compliant systems to modern, compliant ones — a transition that has improved transparency, reliability and trust across the corridor.

Year-Round Connectivity through Khunjerab

Historically, the Khunjerab Pass remained operational only during limited months due to severe weather conditions constraining trade volumes through seasonal closures. In 2024, following the decision of the governments of Pakistan and the People’s Republic of China, NLC in coordination with relevant authorities operationalized year-round trade through Khunjerab Pass marking a major shift in regional connectivity dynamics. Uninterrupted cargo movement now ensures predictable supply chains for traders on both sides of the border.

Infrastructure improvements at NLC Dry Port Sost further support this trade efficiency. The deployment of advanced cargo scanners and other modern infrastructure has made cargo handling and customs clearance processes faster, improving both transparency and security in trade operations.

Extending the Corridor Beyond China

NLC’s role has increasingly extended beyond the Pakistan-China axis into a broader regional network. NLC has demonstrated operational innovation through TIR-based multimodal transportation from China to the United Arab Emirates linking Western China and Central Asia to markets in the Gulf through Pakistan’s transit route. In a landmark achievement, NLC executed the first-ever multimodal logistics operation connecting China to Jebel Ali via Karachi Port further cementing Pakistan’s role as a maritime and overland link between China and the Gulf.

NLC has also facilitated cargo movement linking Pakistani ports to Dushanbe in Tajikistan via Khunjerab and China’s Kulma Pass. Logistics operations now also extend to Russia via China reflecting the growing geographic reach of NLC’s network.

NLC also facilitates transportation of Chinese exports including PVC resin, construction material, machinery, bitumen and walnuts to several countries in the region. In the reverse direction, NLC provides logistics services for the import of cotton, pine nuts and other goods to China underscoring its role as a two-way trade enabler across Central and South Asia.

Corridor Development and Regional Frameworks

Beyond individual trade routes, NLC has played a critical role in broader corridor development extending CPEC linkages to connect China with Iran, Uzbekistan and Turkmenistan via Pakistan. NLC has also extensively operationalized the Quadrilateral Traffic in Transit Agreement (QTTA) enhancing connectivity and trade among Pakistan, China, Kyrgyzstan and Kazakhstan. Together, these efforts are positioning Pakistan as a central node in an expanding web of regional trade corridors.

Cold Chains, New Markets and Specialized Cargo

One of the most impactful developments facilitated by NLC is the expansion of temperature-controlled cross-border trade for perishable commodities. Through modern reefer services, NLC regularly transports imports of apples, pears and other fruits from China. These reefers are also used for exports of meat, dairy products and other agricultural produce to China and Central Asia, opening new markets for Pakistani producers. Additionally, Pakistan’s exporters have successfully shipped potatoes, dairy products, pharmaceuticals and meat to Termez and Almaty via China demonstrating the viability of extended supply chains between South Asia and Central Asia. Such trade flows directly benefit farmers, food processors and exporters while contributing to rural economic development.

NLC continues to pioneer new trade frontiers. A milestone achievement was the successful handling of the first land-based e-commerce shipments. In this regard, five shipments were transported from Kashgar to Islamabad opening new opportunities for cross-border e-commerce through the land corridor with a competitive advantage in transit time. NLC has also demonstrated expertise in specialized project cargo logistics by transporting Over-Sized and Over-Dimensional (OSOD) mining and industrial equipment from Kazakhstan and Mongolia to Pakistan via China. This highlights NLC’s capability in handling complex logistics with unmatched efficiency. To better serve smaller and more diverse shipments, NLC has also developed Less-than-Container-Load (LCL) consolidation and transportation services making regional trade more accessible to smaller traders and businesses.

Strengthening Maritime and Fleet Capacity

Complementing its land-based services, NLC has expanded maritime connectivity through the launch of its Flag Vessel Service connecting Karachi with ports in the Gulf region, China and Southeast Asia. This initiative provides exporters and importers with competitive shipping solutions while strengthening Pakistan’s maritime trade presence in key markets.

Recognizing that efficient logistics depends on modern transportation assets, NLC has significantly invested in the procurement of modern trucks from China enhancing fleet efficiency and operational reliability across challenging terrains. These vehicles contribute to reduced transit times, lower cargo risk and improved service quality for traders operating across borders.

A Growing Regional Footprint

The cumulative impact of these initiatives goes far beyond cargo movement. By establishing regional connectivity, NLC has contributed to increased trade volumes, market diversification for exporters, regional supply chain resilience, economic development of border communities and enhanced regional cooperation.

As Pakistan and China commemorate 75 years of diplomatic relations, logistics and connectivity stand out as powerful symbols of cooperation yielding tangible economic benefits. Through consistent innovation and operational excellence, NLC has played a crucial role in turning trade corridors into economic lifelines. By linking ports, borders and markets, NLC continues to strengthen economic bridges between the two nations and other regional countries.

Looking ahead, the next phase of Pakistan-China cooperation promises deeper economic integration, expanded trade opportunities and new connectivity projects. In this evolving landscape, NLC remains committed to facilitating trade, enhancing connectivity and contributing to shared prosperity ensuring that the Pakistan-China partnership continues to thrive for generations to come.

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