CAREC Marks 25 Years With $60.2 Billion Invested to Grow Regional Trade

Trade between CAREC countries accounted for only about 5% of their total trade last year, showing how much potential remains for businesses to reach customers within the region.

The Central Asia Regional Economic Cooperation (CAREC) Program has marked its 25th anniversary with $60.2 billion in cumulative investment, celebrating a partnership that has expanded from five founding countries to 11 members. Ministers gathered in Ulaanbaatar adopted a declaration setting priorities for deeper cooperation, building on investments that have improved transport and energy connections and opened access to markets. The next phase centres on helping countries do more business with their neighbours through better border crossings, stronger electricity networks and improved digital connections.

A growing partnership faces a persistent trade gap

Trade between CAREC countries accounted for only about 5% of their total trade last year, showing how much potential remains for businesses to reach customers within the region. The partnership's investment record provides a foundation for addressing that gap: cumulative financing reached $60.2 billion as of August 2026, including $19.9 billion from the Asian Development Bank (ADB). ADB projects under CAREC have improved more than 20,000 kilometres of roads and railways, helping shorten journeys and reduce the cost of moving goods.

ADB President Masato Kanda described regional cooperation as a responsibility built on trust, recognising the years of work countries have put into strengthening their relationships. "Cooperation asks countries to place part of their future in one another's hands," he said, calling for determination to improve the partnership for future generations. The ministers' declaration carries that commitment into a new phase focused on making regional connections more useful for trade, investment and economic opportunity.

New economic corridors connect infrastructure with jobs

ADB is advancing a new generation of economic corridors that bring together transport, energy, digital connectivity, trade, human capital and urban development. The approach connects investment in physical infrastructure with the skills, services and cities needed to support business activity, helping regional links create larger markets and better jobs. ADB plans to provide more than $7.5 billion in financing through 2030 for this effort and seeks to attract around $3 billion in private-sector financing.

Across its broader CAREC commitments, ADB has provided approximately $3 billion since the beginning of 2025, representing about 30% of the indicative $10 billion financing envelope through 2030 announced at the previous ministerial conference. That financing covers projects in Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan and Uzbekistan. These commitments show how the regional cooperation agenda is translating into country-level projects, with investment directed towards connections that can support business across national borders.

Border upgrades and electricity links shape the next phase

The recently approved Border Upgrades for Integration, Logistics and Development (BUILD) Facility will provide up to $400 million to modernise border crossings, addressing a practical part of the challenge of moving goods between neighbouring economies. Proposed negotiations on a CAREC Trade and Investment Facilitation Partnership would support those physical improvements by establishing more predictable rules for trade and investment. Better facilities and clearer procedures would give businesses a stronger basis for planning cross-border operations and assessing new market opportunities.

Energy cooperation includes a project pipeline expected to reach about $1.5 billion by 2030, linked to ADB's Pan-Asia Power Grid Initiative. The bank is exploring a proposed electricity connection across the Caspian Sea involving Azerbaijan, Kazakhstan and Uzbekistan, which could expand trade in clean power. These energy projects, together with improvements to transport, borders and digital networks, reflect the partnership's focus on turning stronger regional connections into wider economic benefits.