Policy Brief 05/08/2024
The International North-South Transportation Corridor (INSTC) represents an ambitious multimodal trade route that can optimize its connectivity potential by integrating with the China Pakistan Economic Corridor (CPEC). Both corridors are cost-effective, have a common connectivity link through Afghanistan, and have the potential to cut trade and freight costs drastically once operationalised. For Pakistan, a future thaw in tensions with New Delhi could lay the groundwork for closer engagement under INSTC. Islamabad’s formal involvement in INSTC makes it difficult for India to oppose CPEC’s regional connectivity potential, and strengthens Pakistan’s bid to promote trade and market routes to Central Asian states.