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Will New Border Crossings Enhance Trade Between Pakistan and Iran?

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Photo Source: Map of Pakistan and Iran sharing borders by Lara Jameson on July 20th, 2021.

15-01-2025

Amna Hafeez

Pakistan Researcher,

Global Human Rights Defence.

 

The Pakistan-Iran border, located in southwestern Asia, is crucial to the economic and diplomatic ties between the two neighbouring countries. Extending about 959 kilometres, it links Pakistan’s Balochistan province with Iran’s Sistan-Balochistan province. This geographic closeness has historically supported cross-border trade and cultural exchanges. However, both nations have faced challenges such as smuggling and the need for improved infrastructure to optimise their strategic position.

In recent years, Pakistan and Iran have prioritised strengthening their bilateral ties, especially in trade and economic collaboration, through the establishment of multiple border crossings. The latest initiative is the opening of a new border corridor in Panjgur, Balochistan, developed in collaboration with Iran. This project seeks to promote lawful trade, reduce smuggling, and generate commercial and employment opportunities for local populations along the border.

The new trade route, located in the Kohak Chidagi area of Panjgur, will serve as the fourth official crossing point between Pakistan and Iran. According to sources from the Ministry of Planning, Development & Special Initiatives of Pakistan, the primary objective of this initiative is to facilitate legal trade activities and boost the local economy by providing employment to the people in the region. The Federal Board of Revenue (FBR) has issued notification to officially open the crossing, and the Collectorate of Customs in Gwadar has been tasked with ensuring the prompt development of the necessary infrastructure at this border point.

The opening of the Kohak Chidagi corridor has been enthusiastically welcomed by Balochistan’s business community, with leaders like Mr. Mohammad Ayub Mirani of the Quetta Chamber of Commerce highlighting its importance. They see the crossing as a long-awaited solution to boost legitimate trade, reduce smuggling, and create employment opportunities for locals.

Furthermore, this new border corridor is expected to significantly enhance trade and economic activity, benefitting local businesses and regional development. The improved infrastructure will also help regulate trade and curb illegal cross-border activities.

In addition to the newly opened Kohak Chidagi crossing, Pakistan and Iran previously inaugurated the Gabd-Rimdan border crossing in December. Situated approximately 120 km from Iran’s Chabahar port and 70 km from Pakistan’s Gwadar port, the Gabd-Rimdan crossing links Rimdan in Iran’s Sistan province with Gabd in Pakistan’s Balochistan province. This crossing, along with other proposed points, is designed to promote trade and people-to-people exchanges, thereby further enhancing the bilateral relationship between the two countries.

The Foreign Office has explained that the Gabd-Rimdan crossing, and the broader network of proposed border points is intended to improve connectivity and foster mutual understanding between Pakistan and Iran. Through these strategic initiatives, both countries are working to enhance their economic cooperation and improve the livelihoods of those living in the border regions, ultimately contributing to regional stability and prosperity.

 

Sources and further readings:

Iran Press (January 13, 2025) A new corridor to be opened soon at Pakistan-Iran border. Iran Press.< https://iranpress.com/a-new-to-be-opened-soon-at-pakistan-iran-border> Accessed 13 January 2025.

Dawn (January 13, 2025) Govt announces opening of new border crossing with Iran. Dawn <Govt announces opening of new border crossing with Iran – Pakistan – DAWN.COM > Accessed 13 January 2025

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