The Pulse | Economy | South Asia

The West Asia Crisis Realigns Regional Trade Through Pakistan

Cargo-laden trucks are already plying six new overland routes linking its major ports to the Iranian border and onward to Central Asia.

Pakistan recently opened six new overland transit routes for goods destined for Iran and Central Asia.

This realignment of regional trade routes is a Pakistani economic response to the ongoing U.S.-Iran war and the resulting crisis in West Asia. It has gained momentum in recent weeks, largely due to the disruption of traditional maritime routes by the U.S.-Israel war on Iran and the subsequent Strait of Hormuz crisis.

The six newly approved routes link the Pakistani ports at Karachi, Gwadar and Port Qasim to Iranian border crossings at Gabd and Taftan. The routes pass through key towns in Balochistan, including Turbat, Panjgur, Khuzdar, Quetta, and Dalbandin.

The six routes, which had seen sporadic and informal use in the past, are now being officially operationalized with streamlined procedures to handle increased traffic.

The development represents a concerted effort by Pakistan to formalize an overland corridor through its territory, which offers a critical alternative for regional trade connecting Iran, China, and the Central Asian countries.

Previously, regional transit relied heavily on maritime shipping lanes via Iranian ports like Bandar Abbas and Chabahar. For landlocked Central Asian states like Uzbekistan and Kyrgyzstan, Pakistan’s primary overland export corridor ran directly through Afghanistan.

Due to the United States’ blockade of Iranian ports and shipping lanes in the Strait of Hormuz, thousands of containers have remained stranded at Karachi port, prompting Pakistani authorities to act swiftly to make the new routes functional.

The war between the U.S. and Iran has clearly brought renewed focus to the potential of these routes and their importance for the region as well as for Pakistani ports, particularly Gwadar, and broader trade connectivity involving China, Iran, and Central Asia.

Historically, trade volumes between Pakistan and Central Asian countries have remained limited, constrained by route insecurity and logistical challenges. In this regard, the instability of the Afghan corridor has further complicated reliable overland access. For almost a year now, trade between Pakistan and Afghanistan has remained shut due to cross-border terrorism and Pakistan’s ongoing military operations against Afghanistan to force it to shut down support to anti-Pakistan militant groups. This has directly and indirectly disrupted the ability of Central Asian countries to access Pakistani ports.

Among the new routes, the Gwadar-Gabd corridor into Iran holds particular promise due to its geographical proximity. This route cuts travel time to the Iranian border to just two or three hours, compared to the 16 to 18 hours required from Karachi. Moreover, reports suggest the Gwadar-Gabd route could cut transport costs by 45 to 55 percent for goods shipped to Iran and onward to Central Asian countries.

These new routes provide a practical alternative connecting Central Asian commerce directly to Pakistan’s ports. Commercial movement on these routes has already started after political agreements were reached between the regional countries involved. So far, several trucking fleets carrying frozen meat and agricultural products have traveled from Pakistan to Uzbekistan via Iran. Meanwhile, the northern route passing through China has also seen steady two-way traffic.

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© The Diplomat