So, we all thought that the multi-billion dollar China-Pakistan Economic Corridor (CPEC) project would be a game changer for Pakistan’s economy and completely tilt the regional power dynamics in favor of China. Think again. While Pakistan struggles to overcome domestic political controversies surrounding the CPEC, India has signed a three-way transit agreement with Iran and Afghanistan on the former’s southern port of Chabahar.
India will be investing about $500 million to develop this strategic port that will allow it to form extended energy and trade linkages with Central Asia bypassing Pakistan. As pointed out by Iranian President Rouhani, this agreement is not just an “economic document; it is also a political and regional one too.”
The message from India is clear — it will not just sit there and watch China extend its influence across South Asia. World powers, wary of China’s regional power play and growing ambitions through the CPEC, are taking a keen interest in these recent happenings. The US and Japan have already announced their backing for India and Afghanistan to develop this transport corridor that will go a long way in reintegrating Iran into the global economic system. As US relations with Pakistan turn sour, it is increasingly looking toward India to help stabilize the troubled Afghan government and play a role to negotiate peace in the country. A greater Indian presence in the region will help protect geopolitical interests of US in Asia as well.
Besides the political angle, the Chabahar port will also have tremendous economic ramifications in the region. It will pose a direct competition to Pakistan’s Gwadar facility and counter the much-hyped CPEC. Diplomats from Iran and Pakistan may proclaim both Gwadar and Chabahar to be “sister ports,” but the truth remains that India has jumped into an opportunity to neutralize Pak-China alliance and push for strategic ties with Central Asian countries. Earlier, evidence of Indian interference in Pakistan provided a reason to believe that it was working to sabotage the CPEC. With the Chabahar pact, India has strategically outflanked Pakistan and secured its regional interests.
The trilateral agreement reflects Modi’s policy of forming regional alliances in areas of trade, energy and security to advance its geo-political clout. This foreign policy has been largely guiding India’s regional investments for its own economic development. The Chabahar port will allow India access to Afghanistan and Central Asian energy markets circumventing the Pakistan-China arc. Eventually, India will be able to benefit from enhanced connectivity across Eurasia through the International North-South Transport Corridor (INSTC).
Pakistan needs to wake up and the political parties should reach a consensus on all outstanding issues regarding the CPEC without any further delay for fast-track progress on the project. India has very smartly engaged neighboring countries of Pakistan to gain their trust and loyalty on regional issues. As India gets cozy with Iran and Afghans continue to show hostility, Pakistan could end up very uncomfortable in its own backyard. The foreign policy of Pakistan must be cognizant of these threats and work toward establishing regional partnerships beyond China. Without such collaboration, Pakistan could face regional isolation that could compromise its economic growth and position on the global stage.
India will be investing about $500 million to develop this strategic port that will allow it to form extended energy and trade linkages with Central Asia bypassing Pakistan. As pointed out by Iranian President Rouhani, this agreement is not just an “economic document; it is also a political and regional one too.”
The message from India is clear — it will not just sit there and watch China extend its influence across South Asia. World powers, wary of China’s regional power play and growing ambitions through the CPEC, are taking a keen interest in these recent happenings. The US and Japan have already announced their backing for India and Afghanistan to develop this transport corridor that will go a long way in reintegrating Iran into the global economic system. As US relations with Pakistan turn sour, it is increasingly looking toward India to help stabilize the troubled Afghan government and play a role to negotiate peace in the country. A greater Indian presence in the region will help protect geopolitical interests of US in Asia as well.
Besides the political angle, the Chabahar port will also have tremendous economic ramifications in the region. It will pose a direct competition to Pakistan’s Gwadar facility and counter the much-hyped CPEC. Diplomats from Iran and Pakistan may proclaim both Gwadar and Chabahar to be “sister ports,” but the truth remains that India has jumped into an opportunity to neutralize Pak-China alliance and push for strategic ties with Central Asian countries. Earlier, evidence of Indian interference in Pakistan provided a reason to believe that it was working to sabotage the CPEC. With the Chabahar pact, India has strategically outflanked Pakistan and secured its regional interests.
The trilateral agreement reflects Modi’s policy of forming regional alliances in areas of trade, energy and security to advance its geo-political clout. This foreign policy has been largely guiding India’s regional investments for its own economic development. The Chabahar port will allow India access to Afghanistan and Central Asian energy markets circumventing the Pakistan-China arc. Eventually, India will be able to benefit from enhanced connectivity across Eurasia through the International North-South Transport Corridor (INSTC).
Pakistan needs to wake up and the political parties should reach a consensus on all outstanding issues regarding the CPEC without any further delay for fast-track progress on the project. India has very smartly engaged neighboring countries of Pakistan to gain their trust and loyalty on regional issues. As India gets cozy with Iran and Afghans continue to show hostility, Pakistan could end up very uncomfortable in its own backyard. The foreign policy of Pakistan must be cognizant of these threats and work toward establishing regional partnerships beyond China. Without such collaboration, Pakistan could face regional isolation that could compromise its economic growth and position on the global stage.
