Pakistan has launched a new trade route through Iran, with experts linking the development to improving ties between the countries after Islamabad hosted rare talks aimed at ending the ongoing conflict in the Middle East.
The inaugural shipment, comprising frozen meat, was transported to Tashkent, Uzbekistan, on Friday, officially activating the Pak-Iran Transit Corridor.
Under the arrangement, consignments from Pakistan will move through Gwadar port – part of the China-Pakistan Economic Corridor (CPEC) – then via Iran to Central Asian states.
“This (corridor) seems to be interlinked with growing bilateral relations between Islamabad and Tehran, which began after Iran’s 12-day war against Israel in June last year,” said Munawar Hussain Panhwar, associate professor at Islamabad-based Quaid-i-Azam University.
Pakistan supported Iran at global forums, including the UN Security Council, which, according to Panhwar, helped ease tensions.
“Pakistan’s mediatory efforts to end the Middle East conflict have further brought the two sides closer,” he said. The move follows Pakistan’s recent relaxation of export rules, allowing shipments of food, medicines, and tents to Iran and onward to Central Asia via the corridor.
Nuclear-armed Pakistan, alongside Türkiye, China, Saudi Arabia and Egypt, helped secure a two-week ceasefire between Washington and Tehran last week, 39 days after US-Israel strikes on Iran in February.
Islamabad also hosted rare US-Iran talks on Saturday, which ended without agreement but saw progress on “several” points excluding Iran’s nuclear program.
What’s in it for China?: China is another key factor, Panhwar said.
“China, which also pushed Iran, wants the CPEC’s connectivity with Central Asia, and this corridor will play a significant role,” he said. “The US is also onboard in this regard, I am sure,” he added. The $64-billion CPEC project links northwest China to Pakistan’s Gwadar port via roads, railways and pipelines, providing a route for cargo to the Middle East, Central Asia and Africa.
India loses, Pakistan gains: Pakistan’s neighbor and archrival India, which enjoyed warm ties with Iran, has been excluded from the new Pak-Iran Transit Corridocorridor. Iran, India and Afghanistan signed a deal in 2016 to develop Chabahar Port, a deep-water port on Iran’s southeastern coast.
It was developed with significant Indian investment to bypass Pakistan and connect to Afghanistan and Central Asia.
But India has since scaled back its involvement following US sanctions and an approaching April 2026 deadline.
India transferred $120 million, liquidating its financial commitment, and saw officials resign from India Ports Global Ltd (IPGL) to avoid US penalties.
Pakistan, on the other hand, has gained from the trade gap left by India.
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.