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Pakistan, Iraq Agree on Ferry Service to Boost Trade and Religious Tourism

Pakistan and Iraq have signed an MoU to launch a ferry service between Gwadar and Umm Qasr ports, aiming to boost trade and religious tourism.

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Pakistan, Iraq Agree on Ferry Service to Boost Trade and Religious Tourism

Pakistan Maritime Minister Junaid Anwar Chaudhry meets Iraq’s Deputy Head of Mission Abdulqadir Sulyman Alhimiri in Islamabad on August 6, 2025. (IC: Handout/Ministry)

August 7, 2025

Islamabad – Pakistan and Iraq have signed a Memorandum of Understanding (MoU) to introduce a new ferry service between Gwadar Port in Pakistan and Umm Qasr Port in Iraq in a major move to strengthen bilateral relations. According to the officials, the agreement would strengthen maritime cooperation, trade, and religious tourism between the countries.

The agreement was signed at the meeting between the Federal Minister for Maritime Affairs of Pakistan, Muhammad Junaid Anwar Chaudhry, and a three-member delegation of the Iraqi Embassy in Islamabad, led by Deputy Head of Mission Abdulqadir Sulyman Alhimiri.

Alternative Route for Pilgrims

The project is especially important to the thousands of Pakistani pilgrims, or Zaireen, who visit the holy cities of Najaf and Karbala annually. The new sea route is an alternative and safe, secure, and viable route to travel through Iran following a recent ban on land travel. The maritime ministry estimates that more than 88,000 Pakistani pilgrims went to Iraq last year to observe Ashura, a clear indication that there is a significant need for regular maritime connections.

Opportunity for Bilateral Trade

According to the Maritime Minister, the MoU will be a “new chapter” in the relationship between the two nations, and the ferry connection will have the ability to capitalize on their “common cultural and religious connection as well as open up new business opportunities.” The ferry service is also a part of a wider blue economy strategy in Pakistan to boost port activity and build supply chains.

In addition to religious travel, the new route is projected to greatly enhance bilateral trade. Minister Chaudhry suggested increasing Pakistani exports of medicines, halal meat, and rice to Iraq and Iraqi oil imports to Pakistan. He observed that Pakistan, too, could supply potassium sulphate to Iraq, because a manufacturing unit already exists in the Gwadar Free Zone. Iraqi representatives, headed by Deputy Head of Mission Abdulqadir Sulyman Alhimiri, were supportive of the ideas, with the maritime industry described as a “pivotal facilitator of future cooperation.”

In FY2024, Pakistan exported goods worth $54.29 million to Iraq and imported petroleum products valued at $145.46 million, as per official data. The trade imbalance reflects significant room to diversify exports and develop a more balanced economic relationship.

In diplomatic terms, Minister Chaudhry also sought Iraq’s backing for Pakistan’s candidature in the upcoming International Maritime Organisation (IMO) elections, a request which was met with a positive assurance of support from Mr Alhimiri.

Iran Ferry Deal Sets the Stage

The agreement with Iraq follows fast on the heels of another major maritime milestone. On August 4, the Ministry of Maritime Affairs granted its first-ever international ferry service licence to Sea Keepers, authorising the operator to run ferry routes connecting Pakistan with Iran and Gulf Cooperation Council (GCC) countries.

The move came after a high-level licensing committee, including officials from the ministries of Defence, Foreign Affairs, Interior, and the Pakistan National Shipping Corporation, cleared the proposal. The ferry service will initially launch from Karachi and Gwadar using modern vessels and is expected to cater to pilgrims, migrant workers, and tourists alike.

Minister Chaudhry hailed the approval as a breakthrough aligned with Prime Minister Shehbaz Sharif’s vision and the National Maritime Policy, calling it a cornerstone of regional connectivity efforts. The ferry service, equipped with modern amenities, is expected to carry hundreds of thousands of passengers annually and will expand based on demand and bilateral agreements.

The announcement came shortly after the Iranian President  Masoud Pezeshkian’s landmark visit to Pakistan, and now, with the Iraq ferry deal in place, Pakistan is positioning itself as a hub for regional sea connectivity.

This series of developments, including proposed ferry routes with Iran, Iraq, and GCC nations, illustrates Pakistan’s intensified focus on maritime diplomacy. The strategic goal is to create a regional ferry network that not only meets religious and economic needs but also strengthens Pakistan’s blue economy and sea-based infrastructure. Technical teams from Pakistan and Iraq will conduct feasibility studies to assess investment levels and operational timelines to put the new ferry service into reality.     

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