Pakistan opens Iran transit corridor to Central Asia as it mediates Mideast peace

Pakistan activated a new trade corridor through Iran on Friday, dispatching its first export shipment of frozen meat to Tashkent, Uzbekistan. The Pak‑Iran Transit Corridor will use Gwadar port – part of the China‑Pakistan Economic Corridor (CPEC) – to move goods through Iran to Central Asian states. The launch comes as Islamabad played a key mediating role in securing a two‑week ceasefire between the US and Iran, alongside Türkiye, China, Saudi Arabia and Egypt.

Strategic Gains for Pakistan and China

Associate professor Munawar Hussain Panhwar of Quaid‑i‑Azam University said the corridor is interlinked with growing bilateral ties between Islamabad and Tehran, and that China, a key driver, wants CPEC to connect with Central Asia. Pakistan has also relaxed export rules to allow shipments of food, medicines and tents to Iran and beyond. Meanwhile, India’s rival Chabahar Port project in Iran, developed with significant Indian investment to bypass Pakistan, has stalled. New Delhi scaled back involvement following US sanctions and an approaching April 2026 deadline, transferring only $120 million and seeing officials resign to avoid penalties.

Trade Gains and Regional Shifts

Pakistan’s trade with Central Asia, including Afghanistan, rose to $2.41 billion in 2025, up from $1.92 billion in 2024, with exports at $1.77 billion and imports at $641 million. The new corridor excludes India, which had enjoyed warm ties with Iran. The development underscores how Islamabad has capitalised on the trade gap left by New Delhi’s retreat, while also positioning itself as a diplomatic bridge in the Middle East. Pakistan hosted rare US‑Iran talks in Islamabad over the weekend, which ended without agreement but saw progress on several points excluding Iran’s nuclear programme.