This piece aims to shed light on the benefits of regional economic integration with Central Asian Republics and Afghanistan for Pakistan's energy and economy.

Pakistan has room to develop into a key economic center for the region, thanks to its population of almost 240.5 million (United Nations Population Fund, Pakistan estimates, 2023) and advantageous placement at the South, Central, and Middle East intersection. Pakistan can boost commerce, investment, and regional connectivity by using its strategic location and cooperating with its neighbors. Economic integration also encourages the exchange of cutting-edge technologies and best practices, creating new markets and employment opportunities. 
Creating economic corridors with efficient transportation infrastructure can help Pakistan become a regional economic hub. These corridors will foster economic activity within the country and with its neighbors. Infrastructure, flourishing industries, and urban development are all a product of developing economic corridors. These can be a rich source of investments and projects that will boost the economy, create jobs, speed up the movement of commodities and lessen Pakistan's burgeoning energy crisis. This piece aims to shed light on the benefits of regional economic integration with Central Asian Republics (CARs) and Afghanistan for Pakistan's energy and economy.

Creating economic corridors with efficient transportation infrastructure can help Pakistan become a regional economic hub. These corridors will foster economic activity within the country and with its neighbors. Infrastructure, flourishing industries, and urban development are all a product of developing economic corridors. 

Regional Economic Integration
It can be seen as akin to global embeddedness or how one interacts with the world, much like globalization. Regional integration, however, is spatial and occasionally political in contrast to globalization. Due to stricter regulations and potentially higher peer pressure, it has stronger institutional foundations than globalization. Multiple researchers have reported that the regional integration of Europe resulted in a significant reduction in disparities in income between integrating/integrated nations. Developing members of the region can prosper more quickly, thanks to free trade agreements (FTAs) and labor and goods mobility.
Fortunately, Pakistan has undertaken measures to foster economic integration with its neighbors through initiatives and projects like the South Asian Association for Regional Cooperation (SAARC) and China-Pakistan Economic Corridor (CPEC), notwithstanding political unrest and security fears. Pakistan has also signed Afghanistan Pakistan Transit Trade Agreement (APTA) and Pakistan-Kazakhstan Preferential Trade Agreement; however, a need is felt for a greater, more resilient regional integration from all quarters of the nation. Keeping in view Pakistan's dwindling energy reserves and ensuing energy crisis, we need to look forward to integration with energy-rich states such as CARs.
Central Asian Republics-Afghanistan-Pakistan Integration: Prospects
CARs and Pakistan have strong cultural and religious links. Pakistan has been unable to benefit from CARs as opposed to the major actors in the region, such as India, Iran, Russia, China, and Turkey, due to its regional diplomacy dilemma. The upheaval in Afghanistan has also impacted Pakistan's relations with the CARs. Security concerns along the Afghan border pose a significant obstacle to Pakistan's attempts to pursue the proposed pipelines that would transport the much-needed oil and gas from Central Asia to Pakistan and elsewhere.
Although there has been considerable progress in economic and trade relations with the CARs, overall trade activity is still minimal compared to other forms of foreign commerce, with Kazakhstan and Uzbekistan being Pakistan's two most involved trading partners. Trade volume between Kazakhstan and Pakistan increased to $219 million in fiscal year (FY) 2022. Meanwhile, the value of Uzbekistan-Pakistan trade climbed to $250 million in the same year.
Pakistan has historically been drawn to Central Asian energy resources. Nevertheless, the implementation of two critical projects in this field has been taking place at a rate slower than needed. The significance of CARs' energy markets for Pakistan must be understood in the light of Islamabad's desire to consume and transit Central Asian energy supplies. Moreover, unlike Central Asia, South Asia suffers from a persistent energy shortage. 

Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline
The trans-Afghanistan pipeline, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, was the first post-Cold War initiative to deliver gas from CARs to energy-deficient South Asia. It is to carry gas from Turkmenistan to Afghanistan, Pakistan, and later on India. By running through Pakistan and Afghanistan, this pipeline would link the Turkmenistan gas field of Yolotan-Osman with the Indian city of Fazilki. TAPI pipeline's anticipated cost is around USD 25 billion. The building of this project began in 1995 as a consequence of a pact that Pakistan and Turkmenistan signed; however, the precarious situation in Afghanistan has raised all parties' concerns. Albeit, Pakistan has expressed its readiness to continue the TAPI project regardless of all obstacles.
Central Asia-South Asia Transmission Project
Another initiative to transfer power from Central Asia to South Asia called Central Asia-South Asia Transmission Project (CASA-1000) has also been a victim of delays. The 1,227 km long cross-border transmission project for power was to transmit 1,000 to 1,300 Mega Watt (MW) of energy produced in Kyrgyzstan through Tajikistan each year to Afghanistan and Pakistan since 2015. The estimated cost of the project is USD 1.2 billion. In terms of project execution, similar to TAPI, there are challenges that render the possibility of completing these massive projects unlikely. The key issues are security, diplomatic difficulties between participating nations, and a lack of sufficient funding for implementation. Overall, Afghanistan's ongoing instability continues to influence the level of collaboration on the project. The recognition of the incumbent Afghan government and its capacity to uphold stability and security and engage in negotiations continues to be issued. Afghan pipelines and power lines appear to be particularly difficult to protect.
Turkmenistan-Afghanistan-Pakistan Power Line (TAP-500)
The year 2018 saw the signing of a framework agreement for the proposed TAP Power Interconnection Project between three states. From Turkmenistan, through Afghanistan, to Pakistan, a 500 km line for transmission was to be built as a part of the project. Once finished, the project would enable Turkmenistan to supply up to 4,000 MW of electricity to Pakistan and Afghanistan. The project funding is estimated to be around USD 1.2 billion. This project, too, has come to a halt following Taliban’s takeover of Afghanistan.

Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan Power Project 
Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan Power Project (TUTAP) is another Central Asia Regional Economic Cooperation (CAREC) program between Central Asian and South Asian states. The first phase, which cost USD 35 million and was completed in February 2009, has since allowed for a year-round 330 MW power connectivity between Afghanistan and Uzbekistan. Asian Development Bank (ADB) approved the second phase costing USD 47 million, which provided a 450 MW electricity connection between Afghanistan and Tajikistan. It was put into service in 2011. A 300 MW power line between Afghanistan and Turkmenistan was being implemented as a part of the third phase, which cost USD 140 million and was approved by ADB in 2012. ADB approved the fourth phase costing USD 200 million of the Afghanistan-Turkmenistan link extension in December 2015, which too was under implementation. Finally, ADB authorized the installation of a 500 MW high-voltage transmission line in the fifth phase costing USD 240 million in December 2016 to permit electricity exports from Afghanistan to Pakistan. Due to the situation in Afghanistan, ADB has halted its funding beginning on August 15, 2021.
Central Asian Republics-Afghanistan-Pakistan Integration: Irritants
Stable Afghanistan is of utmost importance with regard to Pakistan's relations with the CARs, given that Afghanistan provides the most convenient link for the landlocked CARs to seaports and markets in South Asia. Because of the confined Wakhan border, Pakistan's only route into Central Asia is via Afghanistan; however, these advantages for Pakistan and Central Asia would only be attainable once the scenario in Afghanistan has substantially stabilized and safe land access becomes feasible.
Afghanistan had been left with a political void following the 1989 retreat of the Soviet Union and the United States. The Afghan civil war turned the nation into a center for the trafficking of consumer products to Pakistan and Central Asia and the illicit trade of weapons and drugs. The situation worsened as foreign actors and neighboring nations began supporting opposite sides. The establishment of the Taliban in 1994 was arguably the most significant change in post-Soviet Afghanistan. By enforcing Shariah in Afghanistan, the Taliban promised to empower the opposing factions, impose the rule of law, and bring peace. That was followed by 20 years long U.S. War on Terror in Afghanistan.
However, since the U.S.’ retreat from War on Terror in Afghanistan in 2021, the Taliban have reemerged. This has halted the funding for the ongoing and proposed energy projects. Thus, peace in Afghanistan is fundamental to Pakistan-Central Asia regional integration.
Benefits for Pakistan: Combating Energy Crisis
An important determinant of a nation's economic growth is the energy sector. The need for energy has grown significantly over the last few decades. The three main factors increasing energy demand are the rise in population, industrial activity, and technological advancement globally. According to Lahore Electric Supply Company (LESCO), due to the increased demand for electricity, the city may experience more power disruptions in the summer of 2023. The electrical supply and demand imbalance significantly jeopardize Pakistan's growth prospects. Energy shortages and blackouts have caused significant financial losses. The severity of power blackouts can be comprehended by the fact that Pakistan incurred a loss of USD 100 billion as a result of total power blackout in January 2023.  
Despite having additional capacity, the nation is currently facing a 6000 gigawatts (GW) shortfall. Due to Pakistan’s dwindling natural resources, such as oil and gas, it has to rely on costly energy imports that have contributed to the growing circular debt of Pakistan.
The pipelines mentioned above are thought to diversify Pakistan's sources of energy and guarantee energy security. Due to the substantial economic activity these projects would produce, they will also present a chance for connectivity between various regions and bring stability and peace to Afghanistan. To lessen dependence on gas imports via ships and spot markets and to negate the U.S. influence in energy politics, Pakistan should employ the TAPI, TUTAP, CASA-1000, and TAP-500 pipelines and transmission lines as alternative energy projects. These initiatives must be developed because they will increase the country’s energy security and help rid the state of dependence on the Gulf states.
Conforming to Regional Infrastructure Standards
By global standards, Pakistan's infrastructure is underdeveloped, adversely impacting every Pakistani citizen. Power outages, lack of road access, and railway networks affect business and commerce. For a nation to sustain and accelerate economic growth and social development, its infrastructure must be improved and expanded. For Pakistan's economy and to enhance the quality of life, it is essential to elevate both service and quality in transportation and power. One way to do this would be to become interconnected with the regional states. Joint projects will attract sufficient investments to repair and build infrastructure in the country. It is estimated that Pakistan loses between 4 and 6 percent of its gross domestic product (GDP), or roughly USD 6 billion, as a result of its lack of infrastructure.
By connecting to and integrating economically with other CAREC participants, Pakistan may make the most of its strategic location by conforming to the region's infrastructure standards. This will indubitably enhance cross-border trade and revenue generation.
Industrial and Urban Development
The development of key industries is a vital feature of energy corridors. Industry requires more than just being close to highways or railroads to prosper; it additionally requires an atmosphere that encourages investment and trained workers. The government may use additional incentives to promote such growth, but it is crucial that whatever commodities are developed inside such energy corridors should not remain confined. Instead, it should help connect the nation's exports to the global supply chain. Industrial development is, in turn, followed by the growth of urban population centers in close proximity. In addition to generating employment and income opportunities, this will significantly enhance people's health and well-being by lowering energy costs and reducing income disparities. 
In conclusion, utilizing its participation in the CAREC Program and its initiatives, Pakistan can collaborate with regional nations and development partners to secure the energy, infrastructure, and technical and financial assistance required to enable the country to realize its enormous economic potential. It is imperative for Pakistan to understand the immediate need for regional economic integration via energy corridors if it wants to avoid both cold winters and unbearably hot summers.

The author holds an MPhil degree in International Relations from National Defence University, Islamabad. She writes for South Asian Voices, CISS Insight and CGSS.
E-mail: [email protected]

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