Why Is Pakistan Interested in Trade With Iran Beyond Just Money?
/ Go to the mediabankThe FESCO Diomid container ship, the largest one in the history of the far eastern shipping, belonging to Far-Eastern Shipping Company, OJSC, unloaded in the port of Vladivostok
/ Go to the mediabank
Pakistan and Iran have reaffirmed their resolve to expand bilateral trade to $10 billion. Iranian Minister Mohammad Atabak called Pakistan a «long-term strategic trade partner» and expressed optimism that the free trade agreement (FTA) would be concluded soon.Goods transit offers Pakistan more than just revenue — it creates strategic leverage, according to Javed Hassan, former chairman of the Economic Advisory Group.»By providing one of Iran’s most efficient overland corridors, Pakistan becomes a stakeholder in Tehran’s commercial connectivity. That strengthens Islamabad’s hand on border security, energy cooperation — including future gas imports — and broader economic ties.»Gwadar and Chabahar can become complementary nodes, while infrastructure would also serve Afghanistan and Central Asia, making Gwadar a regional logistics hub, Hassan notes.
Gulf Relations
Pakistan must deepen ties with Iran without upsetting Saudi Arabia and the UAE. The red line: whether Pakistani territory facilitates sanctions evasion.
International Perception
Reputation follows performance. If Gwadar handles Iranian, Afghan and Central Asian trade, Pakistan’s narrative as a connectivity hub will gain credibility. Until then, it remains an aspiration.
$10 Billion Target
Raising trade from near $3 billion to $10 billion in five years requires about 28% annual growth. Success depends on three things: a ratified FTA with tariff cuts, sanctions-compliant payment mechanisms, and expanded Gwadar throughput. Until then, this figure is a policy objective, not a forecast.
AnalysisPakistan’s Auto Industry Goes Regional: Bangladesh Gets First ShipmentYesterday, 18:24 GMT
