Pakistan’s National Logistics Company (NLC), a commercial arm of the Pakistan Army, is rapidly expanding its international reach, solidifying its position as a key player in regional trade and logistics. The company completed its first export cargo from Pakistan to Kyrgyzstan via China under UN mandated Transport Internationaux Routier (TIR) system. The NLC trucks carrying medicines reached Bishkek on December 6, 2023.. On its return journey, the trucks would carry consignment of different other products from Kyrgyzstan to Pakistan. Earlier, 2x trucks of NLC, laden with mango juice, household appliances, & various other goods, embarked on their journey from Pakistan to Kazakhstan through Kyrgyzstan.
The NLC is ultimately overseen by the Chief of Army Staff (COAS) of the Pakistan Army. The day-to-day operations of the NLC are managed by a Director General (DG), who is a serving Major General in the Pakistan Army. Currently, Major General Farrukh Shahzad Rao holds the position.
Pakistan-Kyrgystan Transport Corridor
The National Logistics Company (NLC) of Pakistan is actively involved in a project to develop a dedicated transport corridor between Pakistan and Kyrgyzstan, with China as a key intermediary. This project holds significant strategic and economic implications for both Pakistan and the region as a whole.
Key elements of the project:
Route: The proposed corridor would utilize the existing China-Pakistan Economic Corridor (CPEC) network within Pakistan, connecting to China’s Xinjiang province via the Khunjerab Pass. From China, the route would then traverse Kyrgyzstan, ultimately reaching major cities like Naryn and Kyzyl-Kiya.
Focus: NLC’s focus lies in developing infrastructure and logistics solutions along the entire route, including:
Upgrading existing roads and bridges
Establishing new transport hubs and terminals
Facilitating cross-border trade through customs procedures and documentation
Objectives: The project aims to achieve several objectives, including:
Boosting trade: By streamlining cargo movement between Pakistan and Kyrgyzstan, the project aims to significantly increase bilateral trade volumes.
Strengthening regional connectivity: The corridor will provide an alternative route for landlocked Central Asian countries to access markets in South Asia and beyond.
Enhancing Pakistan’s economic influence: NLC’s involvement in the project positions Pakistan as a key player in regional trade and logistics, expanding its economic influence in Central Asia.
Developing strategic partnerships: The project fosters closer economic and strategic ties between Pakistan, China, and Kyrgyzstan.
Significance of the project:
NLC’s China-Kyrgyzstan project is significant for several reasons:
Economic benefits: Increased trade between Pakistan and Kyrgyzstan will boost economic activity and create new jobs in both countries.
Connectivity for Central Asia: The corridor will provide landlocked Central Asian countries with a much-needed alternative route to access global markets, fostering regional economic integration.
Geopolitical implications: The project strengthens Pakistan’s position as a key player in regional trade and bolsters its strategic partnerships with China and Central Asian countries.
Military-civilian relations: NLC’s involvement in the project raises concerns about the growing role of the military in the Pakistani economy and potential conflicts of interest.
Future outlook:
The NLC’s China-Kyrgyzstan project is still in the early stages of development, but it has the potential to significantly reshape regional trade and economic dynamics. As the project progresses, it will be crucial to ensure transparency, accountability, and address concerns regarding the military’s involvement in civilian projects.
Recent developments highlight this expansion:
Kyrgyzstan’s new southern export route to Europe now includes NLC-facilitated cargo transportation. This collaboration strengthens Pakistan’s economic and trade ties with Central Asia.
NLC is actively developing a dedicated transport corridor between Pakistan and Kyrgyzstan, focusing on strategic cities like Naryn and Kyzyl-Kiya. This further emphasizes the company’s growing influence and commitment to regional connectivity.
NLC successfully completed a pilot TIR shipment from Pakistan to Kazakhstan through China and Kyrgyzstan, demonstrating the viability of this new trade route. This achievement showcases the company’s logistical expertise and international capabilities.
The permanent opening of the Khunjerab Pass throughout the year, facilitated by NLC and the Pakistani government, removes a major obstacle to trade between Pakistan and China. This development further underscores the company’s role in strengthening regional economic ties.
Despite concerns regarding the military’s expanding economic influence, the Pakistani government has approved NLC’s participation in bidding for a state-owned construction company. This decision raises questions about the separation of military and civilian spheres in Pakistan’s economy.
These developments highlight NLC’s growing international reach and its increasing significance as a key player in regional trade and logistics. As the company continues its expansion, its role as a commercial arm of the Pakistan Army will undoubtedly attract further scrutiny and raise questions about the balance of power in the country’s economy.
Keywords: National Logistics Company, Pakistan Army, international reach, logistics, trade, regional connectivity, Khunjerab Pass, Kyrgyzstan, China, state-owned enterprises, military-civilian relations