Iran's Desire to Join CPEC, A Big Dent in Indian Foreign Policy

“Pakistan has invited Iran to become part of the CPEC and help strengthen border markets, upgrade railways, build warehouses and open/upgrade border crossing points,” sources of the Ministry of Commerce revealed to Pakistani media.

It is notice worthy that two countries are already in process to chart out a long term strategic plan to enhance bilateral trade. Pak-Iran Joint Working Group and Technical Committee on Trade is contemplating this plan. The prospects for progress on this plan has been further increased as Iran has entered a landmark deal with world powers on her nuclear program which in turn has paved the way of lifting the sanctions against Iran.

Last meeting of Pak-Iran Joint Working group was held in August where they agreed on the need of implementing the bilateral Preferential Trade Agreement (PTA), including promotion of transparency and establishment of a mechanism that issues prior notification.

Pakistan has stressed the need of establishing regular freight train service between Zahedan (Iran) and Quetta (Pakistan). Some progress has been made in this regard as well during the latest meeting but the frequency of operations of this freight train will have to be increased and Iranian inclusion in CPEC would contribute chiefly in achieving that. This will also make these freight operations more economical by introducing concessionary fares as has been proposed by Pakistan already.

“The Iranian delegation will convey all proposals and suggestions to the authorities concerned in their country and inform about the decisions later,” said the official in the Ministry of Commerce.

According to the official, Iran has also shown interest in linking itself with the CPEC to expand its border markets with regional countries.

Implications for Indian Foreign Policy in Iran:

Now this is a big dent to Indian efforts to isolate Pakistan in the region. Iran is approaching China for assistance and cooperation along with seeking some Chinese investment in Iranian infrastructure. Earlier, on 2 Sep. it was reported that Iran has agreed to becoming part of China Pakistan Economic Corridor (CPEC). In fact, under the present geopolitical milieu, both Iran and China can work together. China can give investment and economic boost to Iran while Iran can provide access to Turkey and Europe by acting as land bridge. In this scheme, Pakistan will serve as pivot. It is high time for New Delhi to revise its strategy against Pakistan otherwise there are all the indications that it will be India who will remain isolated in Chinese driven Asian integration via infrastructure development!