Iraq Plans Karachi-Basra Sea Route for Trade Boost

In a strategic move to revamp bilateral trade and strengthen economic cooperation, Iraq has officially proposed the creation of a direct maritime trade corridor connecting Karachi, Pakistan's economic hub, with Basra, Iraq's main commercial port. This initiative, if materialized, could prove transformative for regional trade, connecting South Asia with the Middle East through a more efficient and cost-effective shipping route.

• Iraq proposes a direct maritime link between Karachi and Basra.

• Aims to reduce trade transit time and costs between the two nations.

• Discussions held between Iraq’s Consul General and KCCI.

• Pakistan's exports to Iraq were valued at $54.29 million in FY 2024.

• Imports from Iraq stand at $145.46 million, mostly oil products.

• New Iraqi investment laws will be shared with Pakistani businesses.

• A potential oil pipeline from Basra to Gwadar is also under consideration.

During a visit to the Karachi Chamber of Commerce and Industry (KCCI) on April 16, 2025, Iraq’s Consul General Maher Mjhid Jejan unveiled plans to establish a direct sea route between Basra and Karachi.

The Consul General emphasized that both countries have not yet reached their full trade potential, largely due to logistics barriers and inefficient trade routes. A direct maritime link, he said, would eliminate many of these hurdles, significantly boosting economic engagement.

According to trade figures:

• Exports from Pakistan to Iraq: $54.29 million (FY 2024)

• Imports from Iraq to Pakistan: $145.46 million

• Primarily crude oil and petroleum products

These figures reflect a trade imbalance, but more importantly, they also highlight untapped trade potential.

Currently, trade between the two countries relies on longer shipping routes via transshipment ports, often resulting in higher freight costs and delays.

A direct Karachi–Basra sea route would:

• Cut logistics time by nearly 40%

• Reduce transportation costs by 20–30%

• Facilitate quicker delivery of goods, especially perishables and textiles

Pakistan’s agriculture, textile, and surgical equipment sectors could significantly benefit from quicker access to the Iraqi market, and by extension, to broader Middle Eastern countries via Iraq.

Similarly, Iraq would gain direct access to South Asian markets, especially in consumer goods, pharmaceuticals, and industrial machinery.

The Iraqi Consul General mentioned the introduction of new investment laws aimed at attracting foreign investors and facilitating smoother trade. These laws include:

• Simplified licensing procedures

• Tax exemptions in special economic zones

• Legal protection for foreign businesses

• Relaxed ownership regulations

These policies are expected to make Iraq an appealing destination for Pakistani investors looking to expand operations in the Middle East.

Beyond the maritime link, both countries are also evaluating the feasibility of an oil pipeline connecting Basra (Iraq) with Gwadar Port (Pakistan).

• Iraq could use Gwadar as a gateway to China and Central Asia.

• Pakistan could ensure energy security through a direct crude supply.

• Gwadar would become a regional energy hub, attracting global investments.

This vision aligns with China’s Belt and Road Initiative (BRI), under which Gwadar plays a central role.

This proposed link isn’t just about logistics and trade—it signals a new era in Pakistan-Iraq relations, with potential for collaboration in:

• Higher education & scholarships

• Technology exchange

• Agricultural development

• Defense cooperation

• Cultural diplomacy

Both nations share deep religious and historical ties, and this initiative is poised to elevate their diplomatic relationship to new heights.

Members of the Karachi Chamber of Commerce and Industry (KCCI) welcomed the proposal with optimism. According to KCCI representatives:

“We’ve long advocated for stronger trade routes with Middle Eastern markets. A direct maritime corridor with Basra is a step in the right direction.”

The KCCI is expected to:

• Organize delegations to Iraq

• Explore joint ventures

• Establish business-to-business (B2B) platforms for smoother cooperation

“This could reshape how Pakistan engages with the Middle East. Not only would it benefit exporters and importers, but it also reduces dependence on transshipment hubs like Dubai or Oman.” “It’s also a geopolitical statement. Iraq and Pakistan are looking to diversify partnerships amid global economic shifts. This corridor could play a key role in the emerging regional order.”

The maritime corridor could also complement the CPEC (China-Pakistan Economic Corridor) projects. By connecting Basra to Gwadar and Karachi, it may become a transit route for oil and goods moving between Iraq, China, and Central Asia.

Such a move aligns with broader regional goals of economic integration under:

• ECO (Economic Cooperation Organization)

• OIC (Organization of Islamic Cooperation)

• Belt and Road Initiative (BRI)

The proposed Karachi-Basra Maritime Link is more than just a shipping route. It represents a powerful symbol of economic ambition, regional integration, and diplomatic trust. With the right planning and collaboration, this initiative has the potential to redefine trade in the region, ushering in a new era of connectivity, commerce, and cooperation between Iraq and Pakistan.