Iran has redirected a significant portion of its trade logistics from the United Arab Emirates to Pakistan following new transit arrangements between Islamabad and Tehran.

The move comes after Pakistan’s Ministry of Commerce formally allowed third-country goods to pass through Pakistani territory to Iran, activating a new regional trade corridor. Officials say the decision has already started expanding cross-border trade flows.

The corridor connects key Pakistani ports, including Gwadar Port, Port Qasim and Karachi Port, with border crossings at Gabad and Taftan. This development positions Pakistan as a direct transit hub for Iranian import needs.

Previously, Iran relied heavily on UAE-based logistics hubs, particularly Jebel Ali Port, for transit trade and supply chain operations. However, rising geopolitical tensions and disruptions in regional shipping routes have reduced the reliability of that corridor.

Analysts say Tehran’s shift reflects a broader strategy to diversify trade routes and strengthen supply chain resilience amid uncertain regional conditions.

The new arrangement is expected to increase cargo movement through Pakistan’s infrastructure and enhance the strategic importance of its seaports. It could also open new opportunities in logistics, warehousing, and cross-border trade services.

Pakistan has already seen a gradual rise in imports from Iran, signaling deeper economic engagement between the two neighbours. Officials believe the corridor could further improve regional connectivity if stability and security conditions remain intact.

The development marks a notable shift in South and West Asian trade dynamics, with Pakistan emerging as an increasingly important transit gateway for regional commerce.