Iran has unveiled a bold proposal to extend the China-Pakistan Economic Corridor (CPEC) through Iran to Russia and Europe. Reza Masrour, Secretary of Iran’s Supreme Council of Free-Trade, Industrial, and Special Economic Zones made his proposal during a high-level meeting between he and Pakistan’s Commerce Minister Jam Kamal Khan held during President Masoud Pezeshkian’s official visit to Pakistan – coinciding with Jam Kamal Khan’s visit from Tehran. Mehr News Agency/PressTV
Masrour noted that the initiative, involving both infrastructure and trade facilitation measures, includes issuing multi-entry visas to traders, creating a joint Pakistan-Iran free-trade zone, and linking CPEC through Iran to Europe through Russia (Wikipedia +15/8, Mehr News Agency and Twitter are examples).
Pakistani officials welcomed the agenda, projecting that bilateral trade would increase from its current level of approximately USD 3 billion per annum towards an anticipated annual goal of USD 10 billion, according to CPIC Global.
China-Pakistan Economic Corridor
In 2015, the China-Pakistan Economic Corridor was unveiled as the cornerstone of China’s Belt and Road Initiative; linking Xinjiang in China to Gwadar port in Pakistan via road, rail and pipeline networks (MERICS +1). National Bureau of Asian Research
Iran’s proposal builds on existing efforts like the International North-South Transport Corridor (INSTC), which seeks to connect South Asia, Iran, Russia and Europe through transport links (Wikipedia/India Narrative).
Iran views itself as an essential transit nation, with recent projects like Chabahar Port and Zahedan-Mashhad rail line planned as possible links into Central Asia and Russia (Wikipedia, 2018).
Strategic Gains for Iran, Pakistan and China
Connecting to CPEC offers Iran an opportunity to increase transit revenues and strengthen its position as a regional energy and transport hub by taking advantage of Chinese investments as well as Pakistan’s growing infrastructure development.
Pakistan stands to gain from expanded trade corridors, improved economic zone prospects in Balochistan, and greater integration with Central Asian and European markets (Wikipedia:+1).
China may view Iran as an important transit partner. Some analysts suggest China is exploring alternate routes through Iran and Afghanistan amid delays and security issues on Pakistan-based CPEC routes, India Narrative.
Challenges Ahead While this corridor holds immense promise, it faces considerable obstacles. These include Western sanctions on Iran, mismatched rail gauges between Pakistan and Iran and inadequate border infrastructure that could impede seamless transit.
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Geopolitical rivalries among major powers and regional sensitivities could further slow implementation.
Critics also maintain that Iran does not view itself as competing with CPEC; rather, they see Iran as offering western states relief from maritime chokepoints. Pakistani foreign policy elites have suggested linking Gwadar Port with Chabahar Port in Iran for complementary development rather than direct competition (Wikipedia +CPIC Global +1).
Forecast, Iran-Eurasia Link could revolutionize regional trade dynamics if implemented. Iranian officials currently view their initiative not just in terms of infrastructure development but also policy reforms such as trade facilitation and economic zone harmonization for smoother goods flow across borders, according to Mehr News Agency and PressTV.
As Tehran and Islamabad explore joint ventures in agriculture, transit, energy and industry – including proposals such as rice cultivation in Pakistan followed by processing in Iran’s Chabahar Free Zone – they may accelerate economic ties through joint corridor vision projects; This article first appeared in Tehran Times (+1). Mehr News Agency also contributed.
Will these ambitions materialize will depend on securing infrastructure funding, clearing regulatory and sanctions hurdles, and maintaining geopolitical cooperation – yet Iran’s initiative marks a major transformation: positioning it at the heart of an emerging north-south axis linking Pakistan, China, Central Asia and ultimately Europe.