ARTICLE ON IMEC

The India-Middle East-Europe Economic Corridor (IMEC) has been introduced as an offset to China’s Belt
and Road Initiative (BRI) and is expected to serve as an alternative to the Suez Canal as a trade route.
Launched in September 2023 at the G20 summit in New Delhi, this corridor aimed to unveil the economic
plans of world leaders from Saudi Arabia, the United Arab Emirates, the European Union, India, France,
Germany, Italy, and the United States, after they signed a memorandum of understanding (MoU).The plan
of action indicates the uplifting of regional and global trade through the strengthening of transportation
and communication links between Europe and Asia. The commitment of IMEC in moving towards
introducing two distinct “corridors” showcases its strategic and economic importance, which can pose a
threat to China’s BRI and consequently Pakistan, since Pakistan is a close ally of China.

However, regardless of the corridor’s geopolitical implications, it has faced a setback since the Israel-
Palestine war on 7th October 2023. This conflict has caused complexities in the way of developing political
and economic ties between Israel and the Middle East. In reality, the obstacles to this economic corridor
are far more complicated than they seem, as it has yet to be backed up by strong investments.

Economic and Strategic Significance of IMEC

The MOU signed during the G20 summit highlights the vision of extensive energy and security goals for
the European Nations. It was accompanied by an allowance for the United States to transform its national
security goals, aimed at revitalizing regional and economic integration. During the summit, two separate
corridors were proposed: the East Corridor and the North Corridor.

The Eastern Corridor would be responsible for linking India to the Arabian Gulf, whereas the Northern
Corridor envisions the connection of the Arabian Gulf to Europe. In the Northern Corridor, the most visible
infrastructural project is the operation of the UAE-Saudi Arabia-Amman railway network which would
allow services and goods to be transported between Europe, India, the UAE, Jordan, Israel, and Saudi
Arabia. This project also includes enhancing digital connectivity and pipes via electric cables to support a
clean hydrogen project.

The IMEC is expected to bolster technology and energy partnerships between the involved nations.
Strategic ties between India and Israel have been evident since they collaborated on military and
technological programs. The partnership between the two states has strengthened since Prime Minister
Narendra Modi came into power in India in the year 2014. The possession of the Haifa Port by the Adani
Group highlights its importance as a trading hub, indicating a deeper integration of India into Europe and
the Middle East. This key port is also crucial for the provision of an opportunity for Israel to create a trade
route that would connect the Mediterranean and the Gulf, moving past the Suez Canal.

Apart from this, a 300-kilometer rail track is to be constructed under this corridor’s main infrastructural
project that would create a connection between Amman and the port of Haifa. Moreover, strong trade
volumes between India and Saudi Arabia prove the economic potential of this initiative. India and the UAE
have also cemented an investment opportunity worth $15 billion, with trade standing at a whopping $85
billion.
The IMEC can further provide opportunities for Europe to expand its economic ties and help it cut back on
its dependence on China. Ties between India and Europe may flourish as EU nations like France, Italy, and
Germany have already transformed their relations with India, indicating the significance of the corridor in
the EU’s vast strategic ambitions. Furthermore, if implementing IMEC sets its course, it can tremendously
impact global trade dynamics.

Ships journeying through the Suez Canal may decline in number, causing a huge loss to nations like Egypt.
The Suez Canal holds immense importance as 12% of global trade and 7% of global oil shipments are
transported through it. So, even when new economic opportunities for nations involved in the corridor
may be initiated, it would severely impact the economic interests of Egypt due to its heavy reliance on the
Suez Canal.

Besides this, IMEC is mostly considered a response to China’s rising global ambitions. The Gulf states as a
part of the corridor are determined to maintain a geopolitical and economic balance in their ties with
China, the West, and Russia. They view the IMEC as an initiative that could boost their relations and
reliance on global production networks.

Obstacles to the Implementation of IMEC

The start of the Israel-Palestine war changed the course of the initiatives that were to be taken under
IMEC, making it a complicated venture to establish economic and political connections between Israel and
the Middle Eastern nations. The war has also resulted in the delaying of a minilateral meeting of
the I2U2 (a partnership between India, Israel, the UAE, and the U.S.) scheduled for October.

With the escalation of tensions, the nations involved in the IMEC also failed to initiate a meeting within
sixty days for the development of an IMEC plan of action, which had been discussed during the G20
summit. This indicates that the development of diplomatic relations between the nations has become a
complex issue. Although the eastern and northern corridors were announced successfully alongside
several other projects, the nations involved are yet to form a consensus regarding the funding of said
projects. They require billions in funding and the total could add up to $20 billion. It can be deduced from
this that the IMEC lacks clarification for its financing.

Moving on, several geopolitical concerns can become a challenge for the implementation of this corridor.
These include tensions between nations, such as the dispute between India and Pakistan, the Saudi-Iran
rivalry, and ongoing conflicts in Yemen and Syria. In addition to these, the geographical location of Iran
concerning the Strait of Hormuz may also impede the effective functioning of this corridor.

Even though the IMEC is aimed at counterbalancing BRI, China may cause a diversion of investments and
trade towards IMEC which can serve as a potential challenge to the corridor’s stability and security. The
development of trust between the involved nations is yet to be seen as Europe’s major concerns revolve
around certifying that the infrastructural projects under the IMEC will not be used or exploited to benefit
Russia or China’s influence. These European concerns seem pertinent due to the rise of China’s control in
the Middle East accompanied by Russia’s increased role in the region.

Lastly, the exclusion of regional actors such as Turkiye, Oman, and Iraq can consequently raise
opportunities for the creation of alternative competing projects. It can hinder diplomatic relations, as
indicated by President Erdogan’s statement, “There can be no corridor without Turkey.” These countries
could have served as a geographical benefit for the corridor, and their exclusion may cripple its successful
implementation. Without meticulous observation of these obstacles, the smooth functioning of this
corridor will remain at risk.

Scrutinizing Potential Challenges for Pakistan

The IMEC may give rise to several issues and challenges for Pakistan considering India’s competition with
Pakistan and China. Pakistan’s involvement in the China-Pakistan Economic Corridor (CPEC) has enabled
the nation to have control over crucial land that has impeded India’s relations with European nations and
the Middle East.The IMEC may allow India to surpass Pakistan by hindering its geopolitical influence in the
region. If this corridor becomes a major transportation route, then it can cause regional isolation for
Pakistan and this isolation may even escalate over time. The economy of Pakistan is already in turmoil and
the newly proposed initiatives of the IMEC might take the trade and investment opportunities further
away from it. This corridor’s strategic interests can threaten Pakistan’s foreign policy and regional relations
as it has established its aims and objectives with major powers like the U.S. and the European
Nations.IMEC’s associated projects work as a countermeasure to China’s BRI. Pakistan is a close ally of
China. This situation may bring Pakistan to odd terms with the strategic and economic ambitions of the
IMEC, consequently weakening the nation’s diplomatic and regional relations. To prevent these potential
pitfalls, Pakistan needs to come up with a meticulously devised plan for engaging with the new economic
networks introduced by IMEC. It might also need to bring forward new policies that would strengthen the
nation’s regional, economic, as well as trade relations to fend off any hostilities from IMEC.

Conclusion

It can be deduced that IMEC is of major importance to the nations involved as it has a significant potential
for boosting strategic and economic ties. It proposes cooperation and connection between the Persian
Gulf, Asia, and Europe while aligning with the European Union’s Indo-Pacific strategy and paving the way
for the diversification of economic relations between states.

IMEC may offer plenty of potential economic benefits on a regional and international level however, such
goals cannot be achieved if certain challenges and obstacles are not addressed. The rising influence of
China and Russia in the region raises concerns over the implementation of the corridor. Finally, geopolitical
tensions such as the Indo-Pakistani dispute, the Saudi-Iran rivalry, and more are yet to be navigated. When
viewed from Pakistan’s perspective, these potential challenges may create regional complexities that need
to be reassessed and addressed.