China Pakistan Economic Corridor: Perspectives and Challenges for Iran

Abstract

Regional as well as international media, think tanks, policy makers and social scientists are considering the regional economic giant, China-Pakistan Economic Corridor, as a game changer. Its strategic position has made it so not only for the states of Pakistan and China but also for the region. Alike other corridors, it aims to connect and enhance collective growth economically and socially. It is apparent that the corridor is a source of regional connectivity. Therefore, it may be useful in enhancing economic cooperation between Pakistan and Iran. The relations between both the states have remained cordial but due to the international pressure and regional interests, the volume of bilateral trade has reached to the lowest degree. Since 2014, the Pak-Iran trade has remained under US$ 229 million annually. By using SWOT technique, present study finds that the inclusion of Iran in the corridor will be a turning point in its economic history. At present, Iran is facing worst kind of economic crisis due to international sanctions. It can recover her exports slowly by using CPEC route to India, China and Pakistan. Further, Iran can manage an equilibrium against Saudi Arabia's influence in the region.

A decade of China-Pakistan Economic Corridor: An explorative study of its role in the economic and political development of Pakistan

“…The two governments' alignment of economic and strategic interests has resulted in mutually beneficial areas. Likewise, Mangi at al., (2021) explored the importance of CPEC for strengthening Pak-Iran economic relations. It argues further that economic development can reduce political tension and cause stability.…”