For decades, the Khunjerab route has connected Pakistan and China through one of the world’s highest and most spectacular mountain corridors. The China Pakistan Economic Corridor, or CPEC, has given this historic connection new strategic significance.
Yet a fundamental question remains: can the benefits of this connectivity move beyond the transportation of goods and reach the communities living along the route?
It is time to think beyond border trade and towards a border economy.
Pakistan should seriously consider developing a Gojal Hunza Tashkurgan Economic and Livelihood Corridor as a pilot initiative under the next phase of CPEC. The objective would be to transform strategic connectivity into local jobs, enterprise, investment and shared prosperity for communities on both sides of the Khunjerab frontier.
The guiding principle could be simple:
From Connectivity to Livelihoods. From Border Trade to Border Economy.
Gojal must become more than a gateway
Gojal Sub Division, particularly Sost and Khunjerab, is Pakistan’s northern gateway to China. But its future role should not be confined to customs clearance, transit traffic and the movement of goods across the border.
It can be developed as a Border Economic Hub for Gilgit Baltistan’s agricultural products, minerals, handicrafts, tourism services, digital businesses and cross border commerce.
The people of Gojal themselves are an important but often overlooked asset in this equation. The region’s communities have long been known for their peaceful outlook, hard work, entrepreneurship, education and strong traditions of community organisation.
For generations, the people of this mountain frontier have also viewed their proximity to China not merely as a geographical reality but as an opportunity for friendship, cooperation and peaceful coexistence. They have consistently promoted friendly and brotherly relations with neighbouring communities across the border and can serve as natural local ambassadors of goodwill between Pakistan and China.
This social capital should be recognized as an important foundation for future economic cooperation.
The economic significance of the route is already evident. During fiscal year 2025 26, Pakistan Customs reportedly collected nearly Rs15 billion, approximately Rs14.93 billion, in revenue from imports entering through Khunjerab, compared with Rs13.67 billion in the previous fiscal year. Pakistani exports through the route to China and Central Asia were reported at approximately Rs2.8 billion.
These figures demonstrate Khunjerab’s growing importance to the national economy. But they also raise an important question: how much of the wealth generated through this strategic border route returns to the communities that live closest to it?
If Khunjerab is generating billions of rupees for the national economy, the border population should also receive a visible and measurable share of the benefits.
A policy framework should therefore explore dedicating resources equivalent to at least 10 per cent of relevant revenues and economic gains associated with the Khunjerab Sost corridor to local economic development and infrastructure in Gojal and surrounding border communities.
This should not be viewed as charity or compensation. It should be seen as an investment in the economic infrastructure that can make the border corridor more productive, resilient and sustainable.
The principle is straightforward:
From border revenue to border livelihoods.
Building value, not merely moving goods
One important component of the proposed corridor could be an Export Processing and Aggregation Centre near Sost.
Working with the government, the Silk Route Dry Port Trust, private businesses and community institutions, such a facility could help connect producers across Hunza and Gilgit Baltistan with Chinese and other international markets.
The centre could provide services including sorting, grading, processing, cold storage, packaging, laboratory testing, food safety compliance, phytosanitary certification, branding and export documentation.
Products could include cherries, apples, apricots, potatoes, dried fruits, herbs and other mountain produce, alongside marble, onyx, textiles, handicrafts and locally designed souvenirs.
The objective should be to reduce dependence on exporting raw products and increase the value retained within the region.
Farmers, artisans, women entrepreneurs, young people and small businesses should become active participants in the value chain rather than remaining at its margins.
A Border Livelihood Investment Fund
The proposed three year pilot should include an innovative financial principle: local economic benefits should not remain a promise.
The government, CPEC institutions, development and financial organisations, and private sector partners could explore establishing a Gojal Border Livelihood Investment Fund.
Resources equivalent to at least 10 per cent of relevant corridor revenues and development investments could be channelled into local economic and social infrastructure.
Priority areas could include reliable electricity and digital connectivity, trade and export infrastructure, women and youth enterprises, tourism and local services, and environmental protection and community conservation.
The fund should operate under a transparent, multi stakeholder governance mechanism involving government, local businesses, community institutions and representatives of women and young people, with regular public reporting and independent audits.
In this way, a share of the economic value generated through Khunjerab could return to the region as investment, employment and enterprise.
Energy and digital connectivity are the new infrastructure
A Border Economic Hub cannot function effectively without reliable electricity and high speed internet.
Hydropower, solar energy and energy storage systems could be integrated into a reliable energy strategy for Gojal, supporting businesses, tourism, trade services and digital enterprises.
Similarly, fibre connectivity, high speed internet and future 5G services should be treated as essential economic infrastructure.
A Digital Skills and Enterprise Centre or Hub could be established in Sost or another suitable location to provide young people, women and entrepreneurs with opportunities in e commerce, digital marketing, artificial intelligence, online services, translation, tourism technology and cross border digital trade.
Over the longer term, Pakistan and China could also explore the technical, commercial and legal feasibility of cooperation on cross border energy and digital connectivity.
The future border economy will not be built only on roads and trucks. It will also depend on electricity, data, skills and digital markets.
An opportunity for the next phase of CPEC
The proposed corridor fits naturally with the evolving priorities of CPEC, particularly the growing emphasis on people centred development, agricultural cooperation, enterprise, livelihoods and smaller projects capable of delivering tangible benefits.
The idea is not to build another large infrastructure project. It is to use the infrastructure that already exists, including the Karakoram Highway, the Khunjerab border crossing and the broader CPEC connectivity network, to generate greater economic value for local communities.
The growing potential for Pakistani agricultural and food products in Chinese markets provides an additional opportunity.
The ultimate objective should be clear: connectivity must translate into production, enterprise and employment.
Tashkurgan: a natural partner across the border
Across Khunjerab lies Tashkurgan Tajik Autonomous County, a strategically important mountain region in Xinjiang with an economy based on agriculture, livestock, tourism, border trade and natural resources.
Reported statistics for 2024 indicate economic growth of around 6.7 per cent, alongside significant expansion in tourism, with visitor numbers rising by more than 47 per cent and tourism revenue by more than 52 per cent.
But the potential relationship between Gojal and Tashkurgan goes beyond economics.
The two regions share important cultural, historical and ecological affinities. Both are mountain societies shaped by the Pamir and Karakoram landscapes, harsh climatic conditions, pastoral traditions, high altitude livelihoods and the historic networks of the Silk Road.
Communities on both sides understand the realities of living in fragile mountain ecosystems. They share an interest in protecting glaciers, watersheds, wildlife and high altitude landscapes while creating sustainable livelihoods for younger generations.
Their cultural traditions, hospitality, mountain heritage and centuries of interaction across wider Central and Inner Asian networks provide a valuable foundation for people centred cooperation.
These affinities should be built upon through cultural exchanges, educational cooperation, youth engagement, tourism partnerships and environmental collaboration.
Gojal and Tashkurgan should therefore not be seen as competing mountain economies. They can become complementary partners.
Gojal offers high altitude agricultural products, mountain landscapes, handicrafts, cultural heritage and an increasingly educated young population.
Tashkurgan offers proximity to Chinese markets, logistics networks, investment, technology and business connections.
A structured economic partnership could bring these strengths together while building on the trust and goodwill that already exist between the peoples of the two regions.
Making Gojal Hunza a gateway for Chinese tourism
Pakistan’s recent proposal to encourage Chinese tourists to travel as far as Rakaposhi Zero Point provides another important opportunity.
Rather than treating this simply as a tourism destination, Pakistan should develop a wider strategy to position Gojal Hunza as a hub for Chinese cultural and eco tourism.
A cross border tourism circuit could link Tashkurgan, Khunjerab, Sost, Avgarch, Khyber, Passu, Shimshal, Hussaini, Ghulkin Borith lake, Gulmit, Attabad Lake, Altit-Baltit, Hoper and Rakaposhi Zero Point.
Chinese language information, trained local guides, homestays, local food, cultural centres, trekking and adventure tourism could form part of the visitor experience.
The shared ecological character of the two regions could also provide opportunities for responsible mountain tourism and joint learning on conservation.
The objective should be to ensure that tourism generates income not only for large hotels and transport companies but also for local families, women entrepreneurs, guides, artisans and small businesses.
Turning sister town relations into economic cooperation
Existing sister town cooperation between Gojal Hunza and Tashkurgan should also move beyond ceremonial exchanges.
It can become a practical platform for people to people and business to business cooperation.
Annual border trade and cultural festivals, youth exchanges, business meetings, tourism promotion, agricultural exhibitions, handicraft markets and skills exchanges could strengthen direct relationships between communities.
Cultural exchanges can help younger generations rediscover the wider historical and mountain connections that link the peoples of the Karakoram and Pamir.
Environmental cooperation could also become an important area of partnership, particularly around mountain ecosystems, climate change, glaciers, biodiversity and sustainable tourism.
Such cooperation would connect government institutions with farmers, entrepreneurs, women, young people, tourism operators and community organisations.
A sister town relationship should ultimately create opportunities for people, not simply produce official photographs and memorandums.
A practical forum, not another bureaucracy
A small and action oriented Gojal Tashkurgan Border Economic Cooperation Forum could bring together government representatives, the Silk Route Dry Port, traders, transporters, tourism operators, women and youth entrepreneurs, community institutions, development partners and relevant Chinese stakeholders.
Its role should not be to create another layer of bureaucracy.
Its purpose should be practical.
Which products can enter Chinese markets? What standards are required? Who are the buyers? How can customs and logistics be improved? How can women and young people participate? What services do Chinese visitors need? How can cultural and ecological cooperation strengthen sustainable livelihoods?
The forum should focus on finding answers and removing obstacles.
A three to five year pilot with measurable results
The proposal should begin as a three year pilot focusing on a limited number of sectors: export oriented agriculture, handicrafts and souvenirs, digital services, energy, tourism, environmental cooperation and business partnerships.
The pilot package could include the 10 per cent local investment principle, an export processing and aggregation centre, reliable energy infrastructure, a digital skills and enterprise centre, tourism cooperation and the Gojal Tashkurgan Border Economic Cooperation Forum.
Its results should be measured through clear indicators including local employment, exports, new businesses, women’s and youth participation, commercial links with Chinese buyers, local tourism spending and reinvestment in the border economy.
If successful, the model could eventually be adapted for other border regions of Gilgit Baltistan and Pakistan.
Environmental safeguards must remain central. Mountain ecosystems are fragile, and economic expansion in tourism, mining and infrastructure must be accompanied by transparent environmental assessments, scientific resource management and fair community benefit sharing.
A call for leadership
Gojal’s geography has often been described as a disadvantage because of its remoteness and harsh mountain environment. It is time to turn that geography into an economic asset.
But geography alone will not determine the success of this vision. The greatest strength of Gojal lies in its people.
Its peaceful, hardworking and enterprising communities have repeatedly demonstrated their capacity to organise, adapt and build institutions in some of the world’s most difficult terrain. Their tradition of hospitality and their commitment to peaceful and friendly relations with neighbouring peoples can become an important asset for Pakistan China relations at the local level.
The people of Gojal can serve as genuine local ambassadors of friendship and goodwill, helping transform a strategic border into a space of cooperation between communities.
Khunjerab is not merely a border crossing. It is a meeting point between mountain societies and a gateway between Pakistan, China and potentially wider Central Asian markets.
But the success of this connectivity will ultimately be judged by whether its benefits reach the mountain communities living along the corridor.
Nearly Rs15 billion in customs revenue and billions more in trade demonstrate the economic potential of Khunjerab. The next challenge is to ensure that a meaningful share of this economic activity is reinvested in the border economy itself.
The Government of Gilgit Baltistan, particularly its Planning and Development leadership, should take the initiative in engaging the CPEC Planning Commission, federal government and relevant institutions to develop this proposal further.
This process should be undertaken in consultation with elected representatives, including Member of the Gilgit Baltistan Assembly from GBA-6, as well as the Gojal’s bipartisan political leaders, business and civil society leadership.
A serious consultation could turn an idea into a credible pilot.
The choice is between allowing Gojal to remain primarily a route through which goods pass, or enabling it to become a place where value is created, businesses grow, cultures connect and young people find opportunities.
The proposed Gojal Hunza Tashkurgan Economic and Livelihood Corridor offers one possible way forward.
From Connectivity to Livelihoods.
From Border Trade to Border Economy.
That could become the next chapter of CPEC’s proposed livelihood corridor in Pakistan’s high mountains, built not only on roads and infrastructure but on the friendship, enterprise, cultural connections and shared aspirations of the people living on both sides of the mountains.
