Dreaming of connectivity

GWADAR has long remained Pakistan’s geoeconomic dream. Whenever officialdom thinks of extracting economic advantage from geopolitics, Gwadar is the first image that comes to mind. Yet the port has not realised its promised potential, and the adjoining economic zone still awaits investors. Pakistan’s facilitation of the Tehran-Washing­ton contact generated cautious optimism about a possible geoeconomic opening with Iran. Under the 2008 bilateral agreement on international road transport of passengers and goods, Pakistan has already offered Iran multiple trade routes, including Gwadar-Gabd, Karachi/Port Qasim-Ormara-Pasni-Gabd, Karachi/Port Qasim-Khuz­dar-Dalbandin-Taftan, and extended corridors lin­­king Gwadar, Turbat, Panjgur, Khuzdar, Quet­­ta and Taftan. If used, these routes can reduce logistics costs and reconnect Makran with regional trade flows. Soon after Iranian President Masoud Pezeshkian’s visit to Islamabad, the FBR introduced procedures allowing cross-stuffing of Iran-bound cargo at Pakistan’s seaports and off-dock terminals. The move is expected to benefit Gwadar, Makran and Pakistan’s border trade with Iran. It can be assumed that such facilitation featured in bilateral discussions. Iran has used the Strait of Hormuz as geopolitical leverage, but chokepoints also impacted Iran as the US naval blockade was costing Iran $500 million daily, resulting in billions in lost oil revenues in just the first few weeks of the tightening restrictions. The Gulf crisis has reminded all regional states of the need to diversify trade routes. Iran, already facing regional and global constraints, needs alt­e­rnative corridors; Pakistan is geographically plac­­ed to provide them. This opportunity can also be­­nefit Pakistan. Yet, Pakistan is part of emerging alignments in West Asia that may not always sit comfortably with deeper economic cooperation with Iran. Still, in a region covered in strategic haze, Pakistan’s advantage lies in keeping its options open, building co