Pakistan Customs collected a record Rs. 15 billion in import-related revenue through the Khunjerab Pass during FY2025-26, marking a new milestone for trade activity at one of Pakistan’s most important border crossings with China.
The record collection highlights the growing importance of the Khunjerab Pass as a trade and revenue-generating route between Pakistan, China and the wider Central Asian region.
Record Customs Revenue
According to reported figures, customs authorities collected Rs. 15 billion from imports passing through Khunjerab during the fiscal year.
The latest figure surpassed the previous revenue record and reflects continued activity in cross-border trade.
Khunjerab is strategically important because it connects Pakistan with China through the Karakoram Highway, providing a major land route for commercial trade between the two countries.
Pakistan’s Exports Through Khunjerab
While imports generated significant customs revenue, Pakistani businesses also used the border crossing to send goods to international markets.
Pakistani goods worth approximately Rs. 2.8 billion were exported through Khunjerab to China and Central Asian countries during the period.
The export figure highlights the potential of the route to support Pakistani businesses seeking access to neighbouring and regional markets.
Growing Regional Trade Opportunities
The Khunjerab Pass provides Pakistan with a strategic connection to China's Xinjiang region and, indirectly, wider Central Asian markets.
Greater use of the route could create opportunities for Pakistani exporters in sectors ranging from agriculture and food products to manufactured goods and other commodities.
Improving trade infrastructure and simplifying cross-border procedures could further increase the volume of exports passing through the route.
Crackdown on Smuggling
Authorities have also intensified efforts to control smuggling and illegal trade activities along the border.
Effective enforcement is important for protecting government revenue while ensuring that legitimate businesses are able to conduct cross-border trade through legal channels.
Traders Call for Easier Procedures
Despite the growth in trade activity, traders have called for simpler and more efficient procedures at Khunjerab.
Faster customs clearance, streamlined documentation and improved logistics could help reduce costs and make Pakistani exports more competitive in regional markets.
Strategic Importance for Pakistan
The record customs collection demonstrates the growing economic significance of the Khunjerab route.
Beyond generating government revenue, the border crossing can support Pakistan’s broader objectives of increasing exports, strengthening trade ties with China and expanding access to Central Asian markets.
If infrastructure and trade procedures continue to improve, Khunjerab could play an increasingly important role in Pakistan’s regional trade strategy.
Key Figures
| Indicator | FY2025-26 |
|---|---|
| Customs revenue from imports | Rs. 15 billion |
| Pakistani exports through Khunjerab | Rs. 2.8 billion |
| Major trade partners/markets | China & Central Asia |
Conclusion
The Rs. 15 billion record in customs revenue underscores the growing importance of Khunjerab Pass to Pakistan’s cross-border trade.
With Pakistani exports through the route also reaching Rs. 2.8 billion, there is significant potential for further expansion.
Simplifying trade procedures, strengthening infrastructure and maintaining effective anti-smuggling measures could help Pakistan turn Khunjerab into an even stronger gateway for trade with China and Central Asia.
Disclaimer: This article is for informational purposes only and is based on publicly available reports. The image is AI-generated and is for reference only.
