Iraq proposes Karachi-Basra sea link to boost trade with Pakistan

Pakistan-Iraq ties grow with ministerial talks on defense, counterterrorism and intelligence-sharing

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Iraq has proposed establishing a maritime link between its southern port city of Basra and Pakistan’s commercial hub, Karachi, as part of a broader effort to strengthen trade and logistics between the two nations, the Karachi Chamber of Commerce and Industry (KCCI) announced on Wednesday.

The proposal was put forward by Iraq’s Consul General, Maher Mjhid Jejan, during a visit to the KCCI office, where he met with senior representatives to discuss ways of enhancing bilateral business ties.

“A sea link between Basra and Karachi could play a key role in bringing the business communities of both countries closer together,” the KCCI said in an official statement. “This connection could improve logistics and strengthen trade routes.”

The proposal comes at a time when Pakistan and Iraq have witnessed a notable uptick in bilateral engagement, particularly at the ministerial level. In recent years, the two countries have initiated dialogues on enhancing cooperation in defense, counterterrorism, intelligence-sharing, and counternarcotics.

Pakistan, facing economic headwinds, has ramped up efforts to deepen trade and investment ties with regional allies. The government is actively promoting partnerships in key sectors as part of its strategy to attract foreign investment and boost sustainable economic growth.

Jejan briefed KCCI officials on Iraq’s newly introduced investment laws, specifically designed to attract foreign investors. He assured the Chamber that these legislative changes would be shared with Pakistani stakeholders to help them better understand and leverage the emerging opportunities in Iraq.

Recognizing the quality of Pakistani exports, the Iraqi diplomat encouraged greater participation from Pakistani exporters and investors in his country’s growing market. He noted that Iraq is experiencing rapid development and offers “immense potential” for trade and investment, inviting Pakistani business leaders to visit Iraq and witness the “peaceful and stable environment” firsthand.

During the meeting, KCCI Senior Vice President Zia ul Arfeen shared trade figures, noting that Pakistan's exports to Iraq stood at $54.29 million in the fiscal year 2024, while imports from Iraq totaled $145.46 million. He described this volume as significantly below the true potential, urging both sides to simplify customs procedures, enhance the ease of doing business, and diversify tradable goods and services.

Arfeen also floated the idea of establishing an oil pipeline between Basra and Pakistan’s southwestern port city of Gwadar, suggesting it could serve as a critical trade corridor for Iraq, facilitating access to broader Asian markets.