Ports Shipping and Logistics (Commonwealth Union) – In the ever-evolving landscape of international relations, the Chabahar Agreement stands as a testament to the strategic interplay between regional powers. Signed and updated recently, the agreement will be a transit trade hub between India, Iran, and Afghanistan, aimed at fostering economic cooperation and connectivity through the development of the Chabahar Port in southeastern Iran. As this ambitious project unfolds, the geopolitical implications it holds for neighboring Pakistan, which has long been a key player in the region will be in much focus. The Port of Iran, also known as the Chabahar Port, holds a significant role in the country’s maritime trade and strategic interests.
Located on the Makran coast of Iran’s Sistan and Baluchestan province, the Chabahar Port has long been recognized for its strategic potential. Serving as a crucial gateway to the Indian Ocean, the port is well-positioned to facilitate trade and maritime connectivity between Central Asia, the Middle East, and South Asia. With a depth of 14 meters, the port can accommodate large cargo vessels, making it an attractive alternative to the congested ports of Karachi and Dubai. The Chabahar Agreement seeks to capitalize on this potential by transforming the port into a regional hub for trade and transit. Under the agreement, India has committed to investing $370 million in the development of the port. Afghanistan, in turn, stands to benefit from the agreement by gaining direct access to the sea, thereby reducing its dependence on Pakistan for trade and transit.
The Chabahar Agreement is likely to have raised concerns in Pakistan, which may perceive the project as a strategic threat to its interests. These concerns stem from several factors, including the potential impact on Pakistan’s economy, its relationship with Afghanistan, and its regional standing.
Pakistan’s economy is heavily reliant on its port facilities, particularly the Port of Karachi, which serves as the primary gateway for the country’s imports and exports. The development of the Chabahar Port, with its strategic location and superior infrastructure, may pose a direct challenge to the competitiveness of Pakistani ports. As a result, Pakistan may fear that the Chabahar Port could divert a significant portion of regional trade away from its ports, leading to a decline in revenue and economic growth. However, reports indicate that Pakistan’s Gwadar port has the ability to host super tankers that are much larger than those that are capable in the Chabahar Port.
Historically, Afghanistan has been heavily dependent on Pakistan for access to the sea, with the majority of its trade passing through the Pakistani ports of Karachi and Gwadar. The Chabahar Agreement, however, offers Afghanistan an alternative route to the Indian Ocean, thereby reducing its reliance on Pakistan. This shift in transit routes could weaken Pakistan’s influence over Afghanistan and undermine its efforts to maintain a strategic foothold in the country. In addition to the historic significance, the tensions between Afghanistan and Pakistan have rapidly deteriorated with attempts from Pakistan to isolate Afghanistan.
The Chabahar Agreement is seen by many as an attempt by India to counterbalance Pakistan’s influence in the region. By forging closer ties with Iran and Afghanistan, India aims to project its power in the region and challenge Pakistan’s dominance. This perceived encirclement is likely to have fueled concerns in Pakistan.
Geopolitical analysts have speculated that as a direct response to the Chabahar Port, Pakistan may invest more heavily in the development of the Gwadar Port, located on its southwestern coast. The China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative, is expected to play a crucial role in trade. However other analysts have pointed out that both ports may serve in enhancing trade between Central Asia and the world.