Pakistan’s recent integration into the International North South Transport Corridor (INSTC) marks a significant milestone in its quest for economic revitalization and regional influence. As a critical component of this multimodal transportation network, Pakistan stands poised to leverage its strategic location to enhance trade, attract FDI and balance its relations with major global powers. However, this opportunity came with challenges, particularly in navigating the complex dynamics of Indo-Pak relations, and securing the security of transport routes. The future of parks role in INSTC will depend on its ability to capitalize on these opportunities, while effectively addressing the associated risks.
This debate will start off by discussing the INSTC, and its importance in the region. Once this is done, the focus of discussion will shift to elucidating the potential benefits, and challenges for Pakistan. Finally, this discussion will be folded up by proposing a set of remedies which if put in place will help in rooting out challenges, and taking further benefits from INSTC.
To begin, the International North South Transport Corridor (INSTC), which is a 7200 kilometer long, multi-modal transportation project that established in 2000, and ratified in 2002 by Iran, India and Russia. The corridor connects Central Asia North Europe India Iran, Azerbaijan, and Russia. It serves as an alternative to Suez Canal Trade route.
This corridor combines rail and road routes with seaports in Persian Gulf and Caspian Sea, aiming to facilitate cost-effective and time-efficient freight movement among member states.
Originally, the corridor did not reach its fullpotential due to its administrative issues and political tensions. However, the changing political dynamics, particularly due to India’s renewed interest in Iran’s Chabahar port and sanctions on Russia following the Ukraine crisishave brought the INSTC back into focus after receiving an invitation last year to the State of union from Vladimir Putin. Pakistan officially joined the corridor in august 2024. Pakistan’s recent inclusion in INSTC marks a new chapter presenting both opportunities and challenges.
First and foremost, the significant increase in trade among various partner states by 30% – a rough estimation that’s potentially translating into billions of dollars for Pakistan to reduction in travel time by 40% and cost by up to 30%, Pakistan can attract foreign direct investment FDI in infrastructure and logistic through integration in INSTC. This enhanced connectivity would not only allow Pakistan to diversify its trade channels and gain access to new markets, but also enhancing its export opportunities in key industries like agriculture textiles and manufactured goods. Resultantly, stimulating economic and job.
Secondly, the unique position of Pakistan in Central Asia allows it to play a significant role in INSTC. This integration make it enable to act as a bridge between South Asian and Middle East and Central Asia offering landlocked states access to Indian Ocean and South Asian markets. This potential inclusion of Gwadar port to facilitate trade among member states could further enhance Pakistan’s role in regional connectivity, altering trade patterns across the region.
Moreover, INSTC offers Pakistan, a platform to balance its relations with major powers like Russia, Iran and India. By maintaining an equidistant foreign policy, Pakistan can avoid involvement in bloc politics, and reduce over reliance on any single actor. Improved relations with Russia and potential members in bricks could further enhance Pakistan’s diplomatic and economic standing.
Similarly, with energy rich states like Azerbaijan, Pakistan can overcome its energy shortage. Not only this joint venture with member states could open new gateways for Pakistan’s goods into Europe and Central Asia, but this will further diversify country’s trade and economic partnership.
However, there is no such thing as a free lunch. Thus, Pakistan also has some challenges in the way of integrating into corridor. First, the strained relations between India and Pakistan pose a significant challenge to the success of INSTC. India’s strategic investments particularly, in Chabahar port, are viewed as a security threat for Pakistan. Conversely, India’s perceptions of Pakistan Participation as a political threat could hinder progress on the corridor. Thus, the project could be effective by resolving the issues between Indo-Pak and creating normal relations between both states, which will be sort out by confidence building measures.
Additionally, Pakistan’s successful integration into INSTC will help prevent itself from smuggling, and terrorism like heinous crimes. The ongoing terrorism concerns in regions like Balochistan have previously hindered Pakistan’s participation in regional connectivity projects. Pakistan must strengthen diplomatic and economic ties with neighboring countries like Iran and Afghanistan to manage your political is arising from political instability and regional conflicts.
Finally yet importantly, the sanctions imposed on Russia and Iran, present another layer of connectivity while these sanctions have drivencloser cooperation between these countries and Pakistan. They also carry risks of further geopolitical entanglements that could affect Pakistan’s economic and strategic interests.
In a nutshell, Pakistan’s integration into International North-South Transport Corridor presents a unique opportunity to enhance regional connectivity, stimulate economic growth, and balance relations with major powers. However, the challenges posed by strained relations with India. These security concerns and geopolitical risks must be managed. If successfully navigated, Pakistan could emerge as a key actor in facilitating regional trade, attracting investment, and promoting stability across South Asia, Middle East and the Central Asia.
