In early August 2025, Iran and Pakistan signed 12 agreements, with CPEC emerging as the central topic shaping the region’s transport and economic development strategy. This is reported by the railway transport news portal Railway Supply.

In early August 2025, Iran and Pakistan signed 12 agreements, with CPEC emerging as the central topic shaping the region’s transport and economic development strategy
photo: Iranian President’s website

CPEC and Transport System Integration

The visit of Iranian President Masoud Pezeshkian to Pakistan marked plans to modernize rail and road infrastructure. Both sides agreed to increase the capacity of border checkpoints to stimulate mutual trade growth and transit flows.

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Iran expressed readiness to join CPEC, which links China’s Xinjiang region with Pakistan’s Gwadar port. This route is seen as a vital component of the “New Silk Road” and offers the potential to create new transport corridors.

Pakistan intends to expand its national railway network by integrating it with the transport systems of China and Iran. This approach will improve freight efficiency and provide greater flexibility in regional logistics.

CPEC and Strategic Investments

In February 2025, China and Pakistan launched the second phase of CPEC, involving logistics and energy projects worth $60 billion. These investments aim to enhance competitiveness and accelerate cargo delivery.

Meanwhile, Iran is developing the Chabahar port, building new railways, and constructing dry ports. These initiatives will boost CPEC’s potential and create a southeastern transport corridor, diversifying China’s routes to West Asia and Europe.

Experts believe that Iran’s participation will significantly increase the project’s geopolitical importance. Beyond economic benefits, CPEC will strengthen the positions of participating countries in global trade and reduce dependence on certain maritime routes.

FAQ

What is CPEC?

CPEC is the China–Pakistan Economic Corridor, connecting Xinjiang with the Gwadar port and driving development in trade, transport, and energy.

When will Iran join CPEC?

Both sides announced plans for Iran’s integration into CPEC in August 2025, but the exact timeline depends on the signing of specific agreements.

How does CPEC affect the regional economy?

The project increases trade volumes, develops infrastructure, and opens new supply routes, strengthening Asia–Europe connectivity.

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