ISLAMABAD: Power Minister Sardar Awais Leghari on Wednesday announced that Islamabad and Dushanbe had agreed to set up a joint coordination committee to address transit trade challenges, as Pakistan pushes to consolidate its role as a pivotal trade and transit hub connecting the landlocked Central Asian states with the rest of the world. 

In recent weeks, there has been a flurry of visits, investment talks and economic activity between officials from Pakistan and the Central Asian nations. Tajikistan is Pakistan’s closest neighbor in Central Asia with a narrow strip of 14km through the Wakhan corridor separating the two countries. 

On Wednesday, speaking at the seventh session of the Pakistan-Tajikistan Joint Commission in Islamabad along with Tajikistan Energy Minister Juma Daler Shofaqir, Leghari said both nations needed to explore “new avenues of cooperation” in commercial and economic fields.

“I’m pleased to note that both sides have agreed to create a joint coordination committee on transit trade under the Tajikistan-Pakistan trade transit agreement, which will play a pivotal role in addressing operational challenges and ensuring the smooth implementation of transit trade provisions,” Leghari said. 

He hoped deliberations of the joint commission would aid in preparing “concrete” recommendations to advance further growth in the fields of trade, energy, agriculture and education as well as the industrial sector.

Leghari also called for a “plan of action” to raise the current volume of trade through more trade activities and the removal of barriers. According to data published by Tajik Customs, during 2023 (Jan-Dec), the volume of bilateral trade between Pakistan and Tajikistan stood at $52.73 million, an increase of 62.3 percent in comparison with the previous year.

“I want to emphasize the significance of extending our regional connectivity and welcome Tajikistan to avail all trade corridors from Dushanbe to Gwadar and Karachi under the Central Asian Regional Economic Cooperation program and other multi-model transnational trade corridors,” Leghari added.

He said proximity between Pakistan and Tajikistan through the Wakhan corridor presented an “excellent opportunity” to establish direct connectivity.

Leghari also spoke about the significance of the $1.2 billion Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000) project, that aims to bring 1,300 megawatts of surplus electricity from Central Asia to high-demand electricity markets in South Asia. This project involves the construction of a 1,227km-long cross-border transmission line that will connect Kyrgyzstan, Tajikistan, Afghanistan, and Pakistan 

“I sincerely hope that the remaining work can be expedited to fully realize the potential of this vital energy cooperation ensuring mutual benefits in the power sector,” the Pakistani minister said.

KHAPLU, Gilgit-Baltistan: Demonstrators who have been blocking the Karakoram Highway linking the remote northern Gilgit-Baltistan region to the rest of Pakistan to protest the construction of a dam said on Wednesday they would allow the road to be opened for 15 days, giving the government until then to meet demands. 

The government plans to build the Diamer-Bhasha dam on the River Indus between Kohistan district in Khyber Pakhtunkhwa province and Diamer district in Gilgit Baltistan by 2028-29. It is estimated that plans to build the dam and reservoir will displace more than 4,200 families in nearby areas. Once constructed, the dam will submerge a large section of the Karakoram Highway to China, Pakistan’s Water and Power Development Authority (WAPDA) estimates.

For the last two days, hundreds of protesters have been blocking the KKH in the Diamer district in protest against WAPDA, whom they say has not paid them compensation for land they gave up for the construction of the dam. 

Three rounds of negotiations with the government had failed, Shahid Iqbal, a member of the protesters’ core committee, told Arab News.

“Though all negotiations with the government couldn’t reach a conclusion, we don’t want to disturb the public, that’s why we are opening the road to facilitate commuters,” Muhammad Iqbal, the leader of the protesters’ core committee, told Arab News on Wednesday via telephone from the region.

“And on assurances of the senior superintendent of police, Sher Khan, speaking on behalf of the government, we have extended the deadline for 15 days. The local administration has promised to resolve our issues after consulting with the general manager of WAPDA within 15 days.”

Iqbal said the protest would resume after 15 days if the government failed to meet demands, including the resettlement of those displaced by the dam’s construction as well as financial compensation for affectees. 

Speaking to Arab News, the spokesperson of the Gilgit-Baltistan government, Faizullah Faraq, said the government would consider all “valid demands” of protesters. 

“Officials from WAPDA, the district administration, and police are representing the government side, while five members of [dam] affectees are taking part in the negotiation process,” Faraq told Arab News.

He said Diamer-Bhasha dam affectees had protested multiple times in the past but their latest move to block the KKH had left “hundreds of passengers stranded on both sides.”

“They have presented their demands and the government will leave no stone unturned to fulfil their valid demands,” the official added. 

The $12-$14 billion Diamer-Bhasha dam should generate 4,500 megawatts (MW) of electricity, and a vast new reservoir would regulate the flow of water to farmland that is vulnerable to increasingly erratic weather patterns. With a gross water storage capacity of 8.1-million-acre feet (MAF), the dam is expected to help irrigate 1.23 million acres of additional land. 

China and Pakistan signed a memorandum of understanding in December 2016 for Beijing to help fund and develop Pakistan’s Indus Basin dams, though no timelines were released. Pakistan estimates there is 40,000 MW of hydro potential.

Pakistan has been keen for years to build a cascade of mega dams along the Indus flowing down from the Himalayas, but has struggled to raise money from international institutions amid opposition from its nuclear-armed neighbor India.

Those ambitions have been revived by China’s Belt and Road infrastructure corridor for Pakistan, a key cog in Beijing’s creation of a modern-day Silk Road network of trade routes connecting Asia with Europe and Africa.