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CPEC Integration Poised to Transform Afghanistan into Regional Trade Hub

KABUL – The China-Pakistan Economic Corridor (CPEC) is emerging as a potential lifeline for Afghanistan, with policymakers and analysts predicting it could reshape the war-scarred nation’s economy and turn it into a vital bridge between Central Asia, South Asia, and the Middle East. At a recent session of the Pakistan-China Joint Chamber of Commerce and Industry in Lahore, Acting President Zafar Iqbal described CPEC as a “game-changer” for Kabul, stressing that the country was no longer bound by its landlocked geography. “Afghanistan is no longer a landlocked country; with CPEC, it becomes a land-linked trade corridor,” he declared, as regional states like Uzbekistan and Tajikistan prepare to use Pakistan’s Gwadar Port for commerce.

The stakes are high. Economists estimate that CPEC integration could slash Afghanistan’s trade costs by nearly 40 percent and boost its GDP by up to six percent annually. For a nation battling poverty, unemployment, and economic collapse since the Taliban takeover, such gains could prove transformative. Access to Pakistani ports would give Afghan exports—from agricultural goods to textiles and minerals—cheaper routes to global markets, while China’s decision to grant tariff-free access to Afghan products is already being hailed as a lifeline for Kabul’s fragile economy.

Much of the attention centers on Afghanistan’s immense, untapped mineral wealth—iron ore, copper, lithium, and rare earths valued in the trillions. Under CPEC, Chinese and regional investors are expected to pour billions into mining and infrastructure projects. Proposed road and rail corridors, including the Peshawar–Kabul motorway and a possible Kabul–Gwadar link, could weave Afghanistan into a 3,000-kilometer transport network, connecting it directly to global shipping lanes. At the same time, energy projects tied to CPEC could deliver up to 1,000 megawatts of power, easing chronic blackouts and reducing reliance on costly imports. Special Economic Zones are expected to create more than 150,000 jobs in logistics, manufacturing, and technology, providing new opportunities for Afghanistan’s restless youth.

Diplomacy is moving in parallel with economics. On August 20, Kabul hosted a trilateral dialogue between China, Pakistan, and Afghanistan, where all sides pledged to expand CPEC while deepening cooperation against terrorism, narcotics, and cross-border crime. Chinese Foreign Minister Wang Yi also held direct talks with Afghan officials on mining, agriculture, and broader participation in Beijing’s Belt and Road Initiative. The push reflects not only economic ambition but also Beijing’s growing desire to anchor Afghanistan in a framework of regional stability.

For Western observers, the shift is striking: a country long synonymous with conflict is now being positioned as a potential trade hub linking Asia’s heartland to the Middle East. Supporters argue that economic connectivity could foster stability where decades of foreign interventions and aid efforts have failed. As one Chinese analyst told China Daily, “a connected Afghanistan is a peaceful Afghanistan.” Whether CPEC can deliver on that promise remains uncertain, but for Kabul, the project may be the closest it has come in decades to a genuine economic turning point.

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