Amidst a US naval blockade and deteriorating relations with the United Arab Emirates (UAE), Pakistan has emerged as a significant strategic ally for Iran's international trade. Pakistan has officially granted permission for the transit of Iranian goods through its ports and land routes, while this new commercial partnership is proving highly lucrative for Pakistan, particularly through increased activity at the Karachi and Gwadar ports.
Impact of US Blockade and Strained UAE Ties
The US Navy has implemented a blockade outside the Strait of Hormuz, and following recent conflicts, Iran's relations with the UAE have suffered Notably. Prior to these developments, Iran heavily relied on UAE ports, specifically Jebel Ali, for its global trade. To circumvent the US blockade and the loss of UAE port access, Iran has activated a long-standing agreement with Pakistan, creating a mutually beneficial economic arrangement.
Activation of the 2008 Bilateral Agreement
According to a report by the Tasnim News Agency, Pakistan has formally approved the transit of goods to Iran via its territory and maritime facilities. The Ministry of Commerce in Islamabad issued the 'Transit of Goods through Pakistan Territory Order 2026' on April 25, which was implemented immediately. This order activates a 2008 bilateral road transport agreement with Tehran that had previously remained dormant.
Strategic Logistics Gateways and Routes
Under this new directive, six land routes have been established, connecting Pakistan's three primary ports—Karachi, Port Qasim, and Gwadar—to two Iranian border crossings in Balochistan, namely Gabd and Taftan. This announcement coincided with the visit of Iranian Foreign Minister Abbas Araghchi to Islamabad for high-level discussions with Prime Minister Shehbaz Sharif.
Economic Efficiency and Port Capacity
Pakistani officials have highlighted that the Gwadar-Gabd corridor is the shortest among the designated routes, reducing the travel time to the Iranian border to just two to three hours. Transport costs via this route are estimated to be 45% to 55% lower compared to shipping through Karachi. Currently, Karachi and Port Qasim collectively handle approximately 42 million tons of cargo annually. Industry data reveals that since the onset of the conflict, Karachi alone has managed nearly 75% of the cargo diverted toward Pakistan.
Geopolitical Significance of Gwadar Port
Gwadar Port, operated by the China Overseas Port Holding Company as a central hub of the China-Pakistan Economic Corridor (CPEC), is situated approximately 170 kilometers east of Iran's Chabahar Port. Being geographically the closest of the three Pakistani ports to Iranian territory, Gwadar serves as a vital logistical gateway, while Washington's naval blockade continues to attempt to restrict Iran's access to global markets.