New Delhi: Pakistan has opened a series of overland trade corridors that will facilitate the movement of goods into Iran, which is being seen as a bid to continue its peace-brokering role between Iran and the US, as well as activating the China-Pakistan Economic Corridor’s (CPEC) Gwadar port.
The move comes even as thousands of its containers remain stranded at its ports amid disruptions linked to regional tensions.
In a statutory order issued by Pakistan’s Ministry of Commerce, six routes were designated for transit trade to Iran. Shipments will move through these corridors under an encashable bank guarantee. The directive, laying out the legal and logistical framework for cross-border cargo movement, took effect on 25 April.
Essentially, Islamabad has given Tehran an economic breather at a time when the Strait of Hormuz remains under severe strain, with over 3,000 containers bound for Iran stalled in Karachi. Bypassing maritime constraints, the six new routes will enable the movement of goods from China, Russia, Europe, and other countries to Iran through Pakistan’s protected overland transit network.
Under the new order, Pakistan will allow transit goods or cargo originating in another country and destined for Iran to pass through its territory, using the specified corridors. These include routes linking the Gwadar and Karachi ports to the Gabd and Taftan border crossings, along the Port Qasim, Quetta, Khuzdar, and Ormara transit nodes. The transportation process will be governed by Pakistan’s customs laws and require financial guarantees equivalent to import duties. Islamabad’s order clarifies procedures such as “cross-stuffing”, or transferring goods between containers under customs supervision.
Although a ceasefire is currently in place, uncertainty persists over maritime access and the functioning of the Iranian ports, and this, coupled with the significant impact of the Strait of Hormuz on the war, makes the corridors key to Iran’s trade. Iran has currently taken the position that it would not lift its military control over the Strait of Hormuz until the US naval blockade against Iranian ports is removed. US President Trump, on the other hand, has taken the stand that the US blockade will remain in place until Tehran agrees to a deal.
The second round of direct negotiations between Iran and the US—scheduled to be held in Islamabad over the weekend—failed to materialise. Iran has maintained that there will be no direct negotiations as long as the US naval blockade is in place.
Iranian officials, for their part, have grown increasingly sceptical of the diplomatic process. Some view negotiations as a strategic manoeuvre by Washington, D.C., rather than a genuine attempt at resolution. This is particularly because core issues, such as Iran’s uranium enrichment programme, remain unresolved.
Why Gwadar is important
Gwadar Port, operated by the China Overseas Port Holding Company, under Beijing’s Belt and Road Initiative, is central to China’s ambitions for a shorter trade route to West Asia. Nearly 13 percent of China’s oil imports come from Iran.
Amid the war in West Asia, Beijing has been facing its own challenges. This year, Chinese vessels were intermittently blocked by the IRGC at the Strait of Hormuz. Tehran warned vessels against transiting the global waterway due to concerns about the “security” of the strait, as US naval ships were in the vicinity.
The Iranian government, in the middle of this month, stated that the global waterway was “completely open”, but hours later, closed it again. Dr Abdul Majid Hakeem Ilah, the Supreme Leader of Iran’s representative to India, in a discussion with ThePrint Monday, highlighted that Tehran deemed the passage “dangerous”, realising that the US wanted to “pass some warships” through it, which led to its closure once again.
Against this backdrop, the Gwadar Port to Gabd corridor is going to be the most efficient land link into Iran. It will cut transit time to just two or three hours, down from the 16 to 18 hours typically required from Karachi. That compression in travel time carries clear commercial advantages. It—once other factors are considered—reportedly involves a transit time reduced by up to 87 percent and cost savings of 45-55 percent.
For Islamabad, the deeper significance lies in turning Gwadar from a largely symbolic asset into a functioning economic hub. The port—despite its strategic positioning—has long been criticised for falling short of its commercial promise. The move strengthens Pakistan’s broader case that Gwadar is not just an eastern node tied to China’s corridor ambitions, but also a western gateway linking South Asia with Iran, Central Asia, and West Asia, through integrated land-sea routes.
The new transit framework recasts Gwadar as a dual-axis port—it will not only support North-South connectivity, aligned with Chinese trade flows, but also anchor East-West, sanctions-resistant regional commerce, enhancing the port’s long-term geopolitical relevance.