China-Pakistan Agreement on Gwadar Port and Its Impact on Iran’s Economy

International Service – seanews
In mid-Mehr 1403 (October 2024), Chinese Prime Minister Li Qiang, during his official visit to Pakistan, signed significant agreements aimed at strengthening cooperation between the two countries, particularly within the framework of the China-Pakistan Economic Corridor (CPEC). One of the key areas of these agreements was focused on the development of Gwadar Port, recognized as a crucial hub for regional connectivity. Both countries reaffirmed their commitment to speeding up the development of Gwadar’s supporting infrastructure and increasing the flow of shipments through the port.

In addition, issues such as the insufficient supply of water and electricity at the port were identified as priority areas for development, and it was agreed that these challenges should be resolved as quickly as possible. The official launch of Gwadar International Airport further underscored the port’s growing significance as a regional transport and transit hub.

Competition with Iran’s Chabahar Port
The rapid development of Gwadar could present a challenge to Iran’s Chabahar Port, which India and Iran have invested in as a key transit hub to Afghanistan and Central Asia. Due to Gwadar’s strategic location in southwestern Pakistan and its proximity to the Strait of Hormuz, the port could become a serious competitor to Chabahar in regional trade routes.

Geopolitical Implications
Geopolitically, the close cooperation between China and Pakistan on infrastructure projects could shift the balance of power in the region. Although Iran has close ties with China, the development of Gwadar could reduce Iran’s commercial influence and impact regional transit competition. Both Iran and Pakistan are seeking to leverage their strategic locations in global trade, but recent developments suggest that competition for investment and increasing transit volumes has become a significant challenge for both sides.

While the development of Gwadar by China and Pakistan opens many opportunities for economic cooperation, Iran must strategically enhance its position and manage transit competition effectively to remain a key regional player.

Source: www.en.portnews.ru