{"id":14694,"date":"2025-07-05T12:46:02","date_gmt":"2025-07-05T12:46:02","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14694"},"modified":"2025-07-05T12:46:02","modified_gmt":"2025-07-05T12:46:02","slug":"irans-vision-for-unlocking-regional-growth-through-eco","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14694\/","title":{"rendered":"Iran\u2019s vision for unlocking regional growth through ECO"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0The latest summit of the Economic Cooperation Organization (ECO), held in Khankandi, Azerbaijan, brought renewed attention to the untapped economic potential of the region.<\/p>\n

The summit, attended by heads of state and senior officials from ECO\u2019s 10 member countries, focused on strengthening cooperation in trade, transport, energy, investment, and climate change.<\/p>\n

Iranian President Masoud Pezeshkian, delivering his keynote speech at the summit on Friday, emphasized the urgent need to enhance economic diplomacy and remove existing trade and infrastructure barriers among member states.<\/p>\n

He described the current level of intra-regional trade\u2014only 8% of the members\u2019 total foreign trade volume\u2014as \u201cfar below capacity,\u201d citing it as a clear sign of underutilized potential.<\/p>\n

This level of trade does not reflect the historical, cultural, and geographical ties that bind ECO nations, meaning it is time for practical steps to unlock regional capacities and move toward shared prosperity.<\/p>\n

Despite ECO\u2019s goal of fostering regional economic integration, member countries continue to face structural barriers, particularly in tariff policies, customs procedures, and logistics.<\/p>\n

For example, Iran\u2019s trade with Turkmenistan, especially in agricultural products, remains limited due to high tariffs and restrictive border policies. In the technology sector, potential cooperation between Iran and Tajikistan is also hampered by the absence of a unified regional framework.<\/p>\n

At the same time, inadequate transport infrastructure continues to drive up trade costs. Key railway corridors\u2014such as the one connecting Iran and Afghanistan\u2014face persistent technical problems, while the lack of a joint air fleet among ECO members has significantly slowed cargo movement.<\/p>\n

In short, the region\u2019s economic progress is being held back by fragmented transport systems and outdated logistics and for ECO nations, solving these issues must become a top priority.<\/p>\n

As the only ECO member with direct access to the Persian Gulf, Oman Sea, and Central Asia, Iran holds a vital geopolitical position. It can serve as a natural transit route for goods and energy flowing between East and West.<\/p>\n

The long-discussed project to transport Turkmenistan\u2019s natural gas to Turkey via Iran, as well as the export of Chinese goods to Europe through the Iranian corridor, are two strategic opportunities that have been repeatedly highlighted by international observers. However, due to external sanctions, infrastructure gaps, and inconsistent policies, Iran has yet to fully benefit from these projects.<\/p>\n

Iran\u2019s role as a regional energy and transport hub is not a future vision\u2014it is a current necessity. With proper investment and regional agreements, this potential can be activated.<\/p>\n

As part of its strategy to diversify away from oil dependence, Iran has placed a strong emphasis on boosting non-oil exports to ECO countries. These include agricultural products, industrial goods, and technical-engineering services.<\/p>\n

Iran currently exports fruits and nuts to Kazakhstan and has been involved in construction and engineering projects in Turkmenistan. Officials say these examples can be scaled up with the right incentives and agreements.<\/p>\n

Furthermore, religious and medical tourism have emerged as key sectors for development. The city of Mashhad\u2014home to the holy shrine of Imam Reza (AS)\u2014continues to attract millions of pilgrims annually, particularly from ECO member countries such as Pakistan, Afghanistan, and Central Asian states.<\/p>\n

With additional investment in medical infrastructure and tourism services, Iran aims to position itself as a top destination for health and pilgrimage tourism.<\/p>\n

To improve economic integration, Iranian officials proposed the implementation of preferential tariffs among ECO members. A tariff reduction agreement between Iran and Turkey on petrochemicals, or a deal to reduce wheat tariffs between Kazakhstan and Iran, could serve as important confidence-building steps.<\/p>\n

Another key priority is investment in transit infrastructure. Projects like the Khaf-Herat railway, which will link Iran with Afghanistan and eventually with Central Asia, and the expansion of Chabahar Port as a key trade hub, are being advanced as strategic assets for the entire ECO region.<\/p>\n

In other words, strengthening infrastructure is not just for Iran\u2019s benefit\u2014it will enhance regional connectivity and reduce trade costs for all member states.<\/p>\n

While the Khankandi summit reaffirmed ECO\u2019s vision of a more integrated and prosperous region, experts believe that practical actions and political commitment are now needed more than ever.<\/p>\n

Iran, given its strategic location, diversified economy, and cultural influence, is poised to lead efforts to activate ECO\u2019s latent economic potential.<\/p>\n

Through targeted investments, preferential trade agreements, and the development of transport corridors, Tehran is expected to play a central role in reshaping the region\u2019s economic landscape.<\/p>\n

As highlighted in Khankandi, ECO is not just a forum for dialogue\u2014it is a platform for regional self-reliance and cooperation in the face of shared challenges.<\/p>\n

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