Investment in roads and ports will not unlock the Middle Corridor’s potential if cargo remains stuck at borders because countries apply different customs rules and permit procedures, International Monetary Fund officials warned.
IMF officials made the assessment on October 15 during a briefing on the regional economic outlook, according to Report and APA.
Subir Lall, deputy director of the IMF’s Middle East and Central Asia Department, said transport corridors across the South Caucasus and Central Asia require aligned customs regulations, compatible standards and coordinated permit procedures.
Good infrastructure cannot deliver rapid transit when administrative differences leave freight waiting at borders for days, he said. Alongside physical roads and transport links, the region needs what policymakers call soft infrastructure: predictable, compatible rules.
Investment Must Be Paired With Reform
Jihad Azour, director of the IMF department, linked the region’s future growth to development of the Middle Corridor and expanded trade with China, Europe and the Middle East.
Countries in the South Caucasus and Central Asia are already investing heavily in transport and logistics. The IMF, however, says the route’s full potential also depends on institutional reform, stronger private-sector development, changes at state-owned enterprises and a more efficient role for government in the economy.
The fund also regards trade diversification and deeper regional integration as essential to sustainable growth. Shifts in investment and logistics flows have supported regional economies in recent years, although the IMF expects growth rates across individual countries to gradually converge in 2026 and 2027.
Middle East Crisis Adds Risk
The IMF said most South Caucasus and Central Asian economies had so far remained resilient to the Middle East crisis, helped by alternative routes, fiscal buffers and oil production outside the Persian Gulf.
But those buffers are narrowing, and further energy disruptions could intensify price volatility. Faster border crossings and a more reliable Middle Corridor are therefore becoming economic priorities for Azerbaijan and the wider region, not merely transport objectives.
Source: Vesti Baku