Last year, Pakistan had invited Iran to enter the much celebrated China-Pakistan Economic Corridor (CPEC) to strengthen cross-border trade and upgrade infrastructure in the region. While traditionally the two sides have enjoyed warm ties, their relations had recently seen a downhill trend due to Iran’s growing economic and political closeness with India.
As a sign of their friendship, India has agreed to invest about $500 million to develop the strategically located Chabahar port that will allow it to form extended energy and trade linkages with Central Asia bypassing Pakistan.
There now seems to have been a change in heart of the Iranian leadership that has expressed an interest in CPEC participation, terming it “one of the greatest projects in the region.”
Even though Iran had agreed to consider a role in CPEC, this sudden shift in Iran’s position is somewhat baffling for Pakistan keeping in mind the turbulence in their relationship. It is true that Pakistan is seeking more friendships and stable ties in the region, but Iran’s latest move leaves some questions to be answered. On top of Pakistan’s mind would be the Indian presence in Iran to sabotage the CPEC and fuel insurgency in the restive province of Balochistan.
These suspicions have only been strengthened after the arrest of Indian operatives from the area earlier this year. Generally, Pakistan has not linked the future of its relationship with Iran based on its ties with India. However, Iran will have to provide Pakistan clear answers and a guarantee that its land will not be used to stir trouble in the latter’s territory.
Besides this security angle, Pakistan will also view Iran’s offer from a purely economic standpoint. In this era, domination on global scene is only possible by forming trading blocs and economic alliances rather than solely focusing on pumping the military muscle. Already facing a difficult time to manage its ties with Afghanistan and India, Pakistan would seek some stability in ties with Iran to promote its economic and geo-political, strategic interests.
For Pakistan, this could mean getting another step closer to the gas pipeline project with Iran that has faced several hiccups in the past. Dubbed as the “Peace Pipeline,” Pakistan has roped in China to fund up to $2 billion required to complete work on its side of the project. Once completed, the pipeline will carry gas from Gwadar Port to other areas of the country and provide much needed fuel to power Pakistan’s economy. The pipeline can also be linked to the CPEC to transport Iranian gas to energy-hungry China via Pakistan, making it a regional hub of trade and energy.
The emerging economic, security and trade dynamics in South Asia provide mouthwatering prospects to make this the Asian century. However, a lot needs to be done to make these great plans materialize. There is a need to overcome the severe trust deficit between Iran and Pakistan by clearing any misconceptions. Iran’s negative reaction and baseless allegations against Pakistan after an attack on Iranian border guards last year is a prime example of not exercising prudence and rushing to conclusions that can have far-reaching consequences.
A more realistic and holistic approach needs to be taken by both sides to ensure that this is not a missed golden opportunity for the region.
As a sign of their friendship, India has agreed to invest about $500 million to develop the strategically located Chabahar port that will allow it to form extended energy and trade linkages with Central Asia bypassing Pakistan.
There now seems to have been a change in heart of the Iranian leadership that has expressed an interest in CPEC participation, terming it “one of the greatest projects in the region.”
Even though Iran had agreed to consider a role in CPEC, this sudden shift in Iran’s position is somewhat baffling for Pakistan keeping in mind the turbulence in their relationship. It is true that Pakistan is seeking more friendships and stable ties in the region, but Iran’s latest move leaves some questions to be answered. On top of Pakistan’s mind would be the Indian presence in Iran to sabotage the CPEC and fuel insurgency in the restive province of Balochistan.
These suspicions have only been strengthened after the arrest of Indian operatives from the area earlier this year. Generally, Pakistan has not linked the future of its relationship with Iran based on its ties with India. However, Iran will have to provide Pakistan clear answers and a guarantee that its land will not be used to stir trouble in the latter’s territory.
Besides this security angle, Pakistan will also view Iran’s offer from a purely economic standpoint. In this era, domination on global scene is only possible by forming trading blocs and economic alliances rather than solely focusing on pumping the military muscle. Already facing a difficult time to manage its ties with Afghanistan and India, Pakistan would seek some stability in ties with Iran to promote its economic and geo-political, strategic interests.
For Pakistan, this could mean getting another step closer to the gas pipeline project with Iran that has faced several hiccups in the past. Dubbed as the “Peace Pipeline,” Pakistan has roped in China to fund up to $2 billion required to complete work on its side of the project. Once completed, the pipeline will carry gas from Gwadar Port to other areas of the country and provide much needed fuel to power Pakistan’s economy. The pipeline can also be linked to the CPEC to transport Iranian gas to energy-hungry China via Pakistan, making it a regional hub of trade and energy.
The emerging economic, security and trade dynamics in South Asia provide mouthwatering prospects to make this the Asian century. However, a lot needs to be done to make these great plans materialize. There is a need to overcome the severe trust deficit between Iran and Pakistan by clearing any misconceptions. Iran’s negative reaction and baseless allegations against Pakistan after an attack on Iranian border guards last year is a prime example of not exercising prudence and rushing to conclusions that can have far-reaching consequences.
A more realistic and holistic approach needs to be taken by both sides to ensure that this is not a missed golden opportunity for the region.
