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Improving Customs Transit Systems

In the Islamic Countries

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climate present in all other directions. Due to its central geographic positioning, Pakistan holds

tremendous potential to serve as a trading hub for the landlocked countries of Central Asia.

Pakistan’s seaports at Karachi, Port Qasim, and Gwadar can provide ideal routes and transit

facilities for Central Asia to establish viable trade links with the rest of the world and ultimately

result in the economic prosperity of the entire region. The country has long been in pursuit of

gaining access to the region ever since the collapse of the Soviet Union in 1991 which led to

fifteen new states and the five landlocked countries of Kazakhstan, Kyrgyzstan, Tajikistan,

Turkmenistan, and Uzbekistan, offering tremendous economic and trade potential. If Pakistan

can successfully penetrate the Central Asian markets, it can become a major trade corridor for

Central Asia to export their vast oil and gas resources to South Asia and beyond. As well, the

Islamic Republic of Pakistan it’s a major transit country for good form/to Central Asia.

The bi-lateral Afghan-Pakistan Transit Trade Agreement (APTTA) 2010, with both commercial

and non-commercial logistics, will also play a crucial role in improving Pakistan’s connectivity

with Central Asia through the Afghan territory.

4.3.2.1

Assessments of Relevant International Organizations

The following observations of performance, as measured by the WB Doing Business Report and

the LPI build a case for the improvements required by Pakistan and the Central Asia countries

to streamline border procedures and improve clearance formalities for trade facilitation.

4.3.2.2

Islamic Republic of Pakistan World Bank’s Logistics Performance Index (LPI)

Logistics Performance Index report contains data analysis the Islamic Republic of Pakistan,

using data collected during the years 2016 and 2018, respectively. The Logistics Performance

Index (LPI), launched in 2007, is an interactive benchmarking tool created to help countries

identify the challenges and opportunities they face in their performance on trade logistics and

what they can do to improve their performance

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. The index is calculated every two years and

ranks 160 countries on the efficiency of international supply chains. The World Bank’s Logistics

Performance Index (LPI) analyses countries through six dimensions. Scores range from 1 to 5,

the highest score representing the best logistics performance. Each dimension is defined as

follows:

Customs

: measures agility clearance processes, regarding speed, simplicity, and

predictability of formal issues conducted by customs control bodies;

10

4 https://www.unescap.org/sites/default/files/FINAL%20V1.0_Indicators%20for%20Trade%20Facilitation-ESCAP-

OECD%20Handbook_0.pdf