LAHORE: Pakistan’s northern trade gateway witnessed record-breaking performance, with Customs authorities collecting nearly Rs15 billion in revenue from imports through the Khunjerab Pass during FY2025-26, while exports worth around Rs2.8 billion travelled through the same route to China and Central Asian markets.
The latest figures show growing importance of the Khunjerab-Sost corridor as Pakistan expands overland trade with China and seeks to strengthen the northern arm of the China-Pakistan Economic Corridor (CPEC).
Customs revenue reached around Rs14.93 billion, up sharply from Rs13.67 billion a year earlier, setting a new record for the route. At prevailing exchange rates, the latest collection is equivalent to roughly $53–55 million.
The surge shows increased movement of machinery, electric vehicles, consumer products and other goods from China through the mountainous border crossing, with some cargo that traditionally moved through Karachi increasingly using the northern corridor.
While imports generated a major revenue boost, exports through Khunjerab stood at around Rs2.8 billion, revealing the continuing imbalance in Pakistan’s trade with China.
Under TIR transit system, Pakistani products including cherries, fruits, gemstones, handicrafts, rice, garments and leather goods have gained access to Chinese and Central Asian markets.
For businesses in Gilgit-Baltistan, the expanding trade flow is creating opportunities for transporters, customs agents, traders and other service providers operating around Sost Dry Port. However, the export numbers remain modest compared with Pakistan’s overall commerce with China.
Pakistan-China bilateral trade has crossed $25 billion in recent years, with Pakistan’s exports generally around $2.5–2.8 billion, while imports from China have reached approximately $16–20 billion or more in recent fiscal data. The disparity continues to leave Pakistan with a substantial trade deficit.
The rising volume of cargo through Khunjerab is also reshaping Pakistan’s logistics landscape. Electric vehicles, specialised machinery and other products are increasingly able to use the northern land route, offering an alternative to conventional maritime supply chains through southern ports.
The expansion of TIR-based transit has simultaneously strengthened the possibility of using Pakistan as a land bridge toward Central Asia. For CPEC, the development carries added significance as the corridor moves beyond its original emphasis on power projects and physical infrastructure.
Since its launch around 2015, CPEC produced approximately $25–26 billion in completed projects, including energy plants, roads, motorways, transmission lines, Gwadar-related infrastructure and social-sector initiatives. The next phase, commonly described as CPEC 2.0, is shifting the focus toward industrialisation, Special Economic Zones, agriculture, mining, artificial intelligence, technology, digital development, green projects, business-to-business investment and export growth.
Against that backdrop, a stronger Khunjerab trade route could provide an important northern logistics link connecting Pakistani producers with Chinese and Central Asian markets. Authorities are also stepping up action against illicit trade along the route.
Recent enforcement operations resulted in seizures of smartphones, wine and pork worth around Rs158 million, with confiscated goods subsequently subjected to legal disposal and auction procedures. Officials view such enforcement as part of efforts to bring more trade into the formal economy and protect legitimate businesses from competition created by smuggled goods.
Khunjerab developments come against the backdrop of a much broader Pakistan-China relationship that Islamabad and Beijing describe as an “all-weather strategic cooperative partnership”, often referred to as an “iron brothers” relationship.
China remains one of Pakistan’s leading foreign investment partners and a major defence supplier. Cooperation extends to joint production programmes such as the JF-17, as well as coordination through forums including the Shanghai Cooperation Organisation and the United Nations.
