Pakistan, Qatar Explore Trade Corridors as Hormuz Crisis Disrupts Shipping
Pakistan and Qatar are exploring new trade corridors, shipping links and regional connectivity through the Middle East and Central Asia to Türkiye and onward to Europe, as disruption to the Strait of Hormuz puts pressure on maritime trade, commercial shipping and regional supply chains.
The discussions come amid months of conflict involving the US and Iran that have sharply curtailed commercial shipping through the Strait of Hormuz, the narrow waterway connecting the Gulf to the Arabian Sea. The disruption has increased freight costs and marine insurance expenses, creating additional challenges for Gulf states and countries such as Pakistan that depend heavily on maritime commerce with the region.
The developments are particularly important for Pakistan and Qatar because of their strong trade and energy links. Qatar is one of the world’s largest exporters of liquefied natural gas and a major supplier to Pakistan, while Islamabad exports agricultural products including meat, rice, onions and potatoes to the Gulf state.
Pakistan’s Commerce Minister Jam Kamal Khan and Qatar’s Minister of State for Foreign Trade Affairs Ahmad bin Mohammad Al Sayed discussed expanding regional connectivity on the sidelines of the Belt and Road Summit in Hong Kong last week.
Chaudhry Naveed ul Haq Kallu, spokesperson for Pakistan’s Ministry of Commerce, said both sides discussed regional connectivity through the Belt and Road Initiative and explored new avenues for transit and trade through the Middle East and Central Asia.
The discussions also included the possibility of connecting Pakistan and Qatar through the Middle East to Türkiye and beyond into Europe.
Neither side has announced a proposed route, mode of transport, investment commitment or timetable for establishing the links discussed in Hong Kong.
The talks come as Pakistan has stepped up efforts to diversify the corridors connecting its ports and exporters with Central Asia, Türkiye and European markets.
In July, Pakistan and Türkiye agreed to pursue the revival of the Islamabad-Tehran-Istanbul freight railway and develop it into a commercial corridor connecting South Asia with Central Asia and Europe.
Pakistan has also been expanding road-based transit links under the international TIR customs system, which allows goods to move across borders in sealed vehicles with simplified customs procedures.
These efforts have gained greater urgency as conflict disrupts traditional maritime supply chains across the Middle East.
Vessel traffic through the Strait of Hormuz fell to seven transits on Sept. 10, compared with a pre-war average of around 125 a day. War-risk and cargo insurance costs have also surged, with some oil shipments facing millions of dollars in additional transit costs.
Pakistan’s exporters have already reported a steep increase in shipping costs. Waheed Ahmed, patron-in-chief of the All-Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association, said shipping a 40-foot refrigerated container of mangoes to Gulf markets was costing between $8,000 and $8,500, compared with $1,000-$1,400 last year.
Ahmed said mango export volumes to the region had fallen by around 50 percent amid the disruption.
Pakistan has also sought to strengthen its domestic shipping capacity. A spokesperson for the state-run Pakistan National Shipping Corporation said the company was considering acquiring or chartering three to five feeder vessels to expand regional services.
