Dreaming of connectivity

Gwadar Port, long envisioned as Pakistan's geoeconomic gateway, continues to grapple with unrealized potential, as its adjacent economic zone still seeks investors. Despite its strategic location, the port has yet to fully leverage its promised economic advantages.

Pakistan is actively seeking to enhance its trade relationship with Iran, offering multiple transit routes. These include Gwadar-Gabd, Karachi/Port Qasim-Ormara-Pasni-Gabd, and extended corridors linking Gwadar, Turbat, Panjgur, Khuzdar, Quetta, and Taftan. Such routes could significantly reduce logistics costs and reintegrate the Makran region with vital trade flows. Recent procedural changes by Pakistan's FBR, allowing cross-stuffing of Iran-bound cargo at seaports, are expected to further benefit Gwadar and Pakistan's border trade with Iran.

The push for greater economic cooperation with Iran is underpinned by several strategic imperatives for Pakistan. These include managing the complex situation in Afghanistan, establishing a more controlled border regime amidst Baloch insurgency concerns, progressing with the delayed gas pipeline project, and securing alternative routes to Central Asia. The traditional ambition of using Afghanistan as a gateway to Central Asia has been sidelined due to terrorism and strained relations with Kabul.

In a region marked by shifting geopolitical alignments, Pakistan aims to maintain flexibility by keeping its options open. Building corridors and fostering economic ties can create space for cooperation even when political relations are strained. This approach allows Pakistan to capitalize on its geographical position to provide alternative trade corridors for Iran, which faces its own regional and global constraints, including the impact of the Strait of Hormuz chokepoint.