ISLAMABAD (PEN) : Trade between China and Pakistan has witnessed a significant surge following the year-round opening of Khunjerab Pass, which facilitates the vital trade route between the two nations along the Karakoram Highway. A convoy of 25 Chinese-made tractor trucks, valued at $1.5 million, crossed into Pakistan recently, marking the ongoing flow of goods under the Belt and Road Initiative (BRI).
Since the start of 2025, 1,271 vehicles have passed through Khunjerab Pass, transporting more than 12,432 tons of goods worth over $95 million, according to local customs data. The pass, previously operational only for eight months due to harsh weather conditions, has been open year-round since December 1, 2024, transforming trade dynamics between the two countries.
Khunjerab Pass: A New Era for Trade
Khunjerab Pass, located at the high-altitude border between Pakistan’s Gilgit-Baltistan region and China’s Xinjiang province, has long been a critical link for overland trade. Before its year-round operation, the pass was limited to the warmer months, but now, the continuous flow of traffic is significantly improving trade efficiency.
“The opening of the pass in winter has created new opportunities for our businesses,” said Khan, a Pakistani truck driver who frequently transports refrigerated goods from Karachi to Kashgar. “Transporting goods like frozen seafood has become much easier and more affordable now.”
Reduced Transportation Costs
The continuous operation of Khunjerab Pass has notably reduced transportation costs. Goods that previously took longer to transport by sea or air can now be delivered by land in a fraction of the time. For instance, cargo can travel from Karachi to Kashgar in just eight days, a substantial improvement over previous logistics, which typically took longer and were more expensive.
This shift has made land transport increasingly competitive compared to sea and air freight, especially for time-sensitive and perishable goods. The reduced costs and improved transit times are expected to enhance bilateral trade, creating more business opportunities for Pakistan and China under the BRI framework.
Significant Trade Flows
As of this year, over 3,900 cross-border travelers have used the pass, and 3,036 tons of agricultural and ancillary products have already been processed. The goods transported include a wide range of items such as agricultural products, electronics, and machinery. The passage of goods through Khunjerab is vital not just for local economies but also for fostering deeper ties between Pakistan and China, both of whom are keen to strengthen their economic relations under the BRI.
The year-round operation of the Khunjerab Pass has thus become a symbol of the growing economic integration between the two countries, making trade easier and more efficient, while also contributing to regional economic development. The move is expected to further bolster the economic corridor that connects China to Pakistan, and in turn, the rest of Central Asia and beyond.
Looking Ahead
With the Khunjerab Pass now operating year-round, trade between China and Pakistan is poised for continued growth. As more goods move through the pass, this development will likely serve as a key pillar in both nations’ efforts to boost their economic ties and strengthen the infrastructure surrounding the Belt and Road Initiative.
