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US Ends India’s Chabahar Waiver; Pakistan Backs Tehran’s Right to Trade

US ends India’s Chabahar waiver; Pakistan backs Iran’s right to trade, calling Gwadar and Chabahar “sister ports.”

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US Ends India’s Chabahar Waiver; Pakistan Backs Tehran’s Right to Trade

A ship sets sail as workers attend the inauguration of new infrastructure at Shahid Beheshti Port in Chabahar, February 25, 2019 [Atta Kenare/AFP].

September 22, 2025

The waiver, issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), had allowed India and other partners to continue work on the port without facing penalties.

“Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions,” the US State Department said, adding that the move was “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime.”

Strategic Corridor for India

Chabahar Port holds strategic importance for India, offering a trade corridor to Afghanistan and Central Asia that bypasses Pakistan. “Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions,” the US State Department said in a statement on September 16, adding the move was “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime.”

Indian officials have not publicly commented, but analysts say the decision complicates New Delhi’s ambitions for regional access and influence.

The move also comes as Washington doubles down on sanctions already hitting Iran’s oil exports, banking sector and global trade links, part of a broader effort to keep Tehran under pressure.

Chabahar and Gwadar as “Sister Ports”

The waiver withdrawal coincides with the renewal of the India–Iran Chabahar agreement, which comes at a time when Tehran continues to grapple with four decades of economic sanctions and international isolation. These restrictions have crippled Iran’s economy and stifled its development prospects, leaving the country seeking alternative trade routes to counter economic pressure.

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Meanwhile, Pakistan has emphasized that Iran has the right to pursue trade initiatives as acts of survival and resilience rather than hostility. Officials in Islamabad stressed that Tehran’s efforts to revive trade corridors are legitimate steps toward economic sovereignty.

Dismissing suggestions of rivalry, Pakistan underscored that Chabahar and Gwadar are not competing projects but “sister ports” that can complement one another in boosting regional connectivity. Islamabad rejected narratives that pit the two ports against each other, stating that cooperation, not confrontation, should define regional development.

Pakistan further noted that Iran’s outreach to India, China, and Russia reflects a bid to break free from isolation and reintegrate into a multipolar global system. Reaffirming its solidarity, Islamabad said Iran deserves the right to development, dignity, and prosperity, urging Muslim nations to support Tehran in its struggle for stability.

Analysts say the waiver’s revocation could reshape South Asia’s trade map, deepening Iran’s tilt toward China and Russia, while giving Pakistan an opening to present Gwadar as a complementary hub for regional connectivity.

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