ISLAMABAD – Iron-friends Pakistan and China struck trade facilitation agreement to accelerate movement of agricultural goods through the Sost-Khunjerab border, introducing dedicated green channel designed to cut customs delays, protect perishable products and boost cross-border commerce.
The development is another key step in strengthening economic connectivity between Islamabad and Beijing, particularly along the strategically important Khunjerab trade route connecting Gilgit-Baltistan with China’s Xinjiang region. The agreement comes after Pakistan Customs recorded an unprecedented Rs15 billion in revenue from Chinese imports through Khunjerab last year, underlining the growing commercial importance of the high-altitude crossing.
Under newly signed arrangement, agricultural products included in mutually agreed list will receive preferential treatment during customs clearance, with priority given to the processing and examination of eligible consignments. The biggest relief could come for traders transporting fruits, vegetables and other perishable agricultural products, provided they fall within the approved list, as delays at border checkpoints can lead to spoilage and financial losses.
Rather than eliminating inspections, the new system will streamline procedures while maintaining risk-based customs controls to ensure compliance with applicable regulations. Both countries have also agreed to strengthen the exchange of customs information and share risk alerts, allowing officials to improve coordination and identify potentially problematic shipments without unnecessarily slowing legitimate trade.
The initiative is expected to reduce clearance bottlenecks, support agricultural exporters and importers, and make the border crossing more efficient for businesses operating between the two countries.
The agreement was finalised on Thursday during a virtual ceremony hosted by the Federal Board of Revenue (FBR). Member Customs (Operations) Syed Shakeel Shah headed the Pakistani delegation, while the Chinese delegation was led by Li Qinghua, deputy head of Urumqi Customs and director of Tashkurgan Customs.
Pakistani side brought together officials responsible for customs operations, agricultural regulation and trade facilitation. Participants included the chief collector of customs, Peshawar, and the collector of customs, Gilgit-Baltistan, alongside representatives of the Department of Plant Protection, NAFSA, Pakistan Single Window and the Ministry of Commerce.
The latest breakthrough comes against the backdrop of increasing commercial activity through Khunjerab Pass, one of Pakistan’s most important land trade links with China. Imports from China through the crossing generated a record Rs15 billion in customs revenue last year. At the same time, exports worth approximately Rs2.8 billion moved through the crossing towards China and Central Asian countries.
For Pakistani agricultural businesses, faster clearance could help improve access to Chinese markets, particularly where the timely delivery of fresh produce is commercially critical.
Despite its commercial importance, Khunjerab remains one of the world’s most challenging international trade crossings. Situated around 15,500 feet above sea level, the pass connects Pakistan’s Gilgit-Baltistan region with China’s Xinjiang region and is recognised as the highest paved international border crossing in the world.
Extreme weather, heavy snowfall and difficult mountain conditions have long affected trade and passenger movement. Under bilateral border protocol signed in 1985, regular travel and trade operations are permitted between April and November, although severe winter conditions can disrupt the route.
These challenges make efficient customs handling particularly important, especially for agricultural consignments with limited shelf lives.
The green channel could prove particularly valuable for businesses seeking to expand agricultural trade with China by improving predictability and reducing the time goods spend awaiting clearance. However, its effectiveness will depend on the agreed list of eligible products, coordination between customs agencies and the practical implementation of priority clearance procedures.
The agreement does not automatically eliminate customs inspections, extend the border’s operating season or guarantee duty-free access to Chinese markets. Instead, it establishes a mechanism for expedited processing of qualifying goods while preserving necessary regulatory checks.
