ISLAMABAD: Despite substantial investment in Pakistan’s Gwadar Port, the port has struggled to achieve its desired success due to several issues, including difficulties in transshipment from China, lack of information for promoting the port to Central Asian Republics (CARs), suspension of transit trade with Afghanistan, and non-implementation of the Cabinet’s decision to handle 60 percent of public sector imports through Gwadar, well-informed sources told Business Recorder.
According to sources, Prime Minister’s offices and Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, are holding regular meetings to make the port fully operational, but several unresolved challenges persist.
To comply with directives to prepare an operationalisation plan for Gwadar Port, the Minister for Planning Development and Special Initiatives recently chaired a meeting that included representatives from all concerned ministries, agencies, and Pakistan’s ambassadors to Central Asian Republics.
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The goal of the meeting was to finalize an operationalisation plan for Gwadar Port to be presented to the Prime Minister.
During the meeting, the Minister stressed the need to develop Gwadar Port’s value proposition, including its potential for transit trade, transshipment, and mining exports from Balochistan to CARs. He also emphasized the importance of focused efforts to operationalise the port within six months, three years, and in the long term, in order to brief the Prime Minister and seek final approval.
The Minister instructed Pakistan’s ambassadors to CARs to provide trade outlooks for the region on a prescribed format to help prepare a value proposition for Gwadar Port as a potential transit trade and transshipment hub for CARs.
Sources revealed that Pakistan’s ambassadors to CARs highlighted the lack of information on key opportunities for Gwadar, such as fiscal incentives, infrastructure at the port, and road connectivity to border terminals. The Minister instructed the Ministry of Maritime Affairs and Gwadar Port Authority to share this crucial information with Pakistan’s missions in CARs.
The National Logistics Cell (NLC) informed the meeting that it had the necessary capacity and access (through NOCs) to routes leading to the CARs. The Minister directed NLC to develop a competitive business plan that includes detailed information on the cost and time involved in shipments from Gwadar to CARs.
The Member for Infrastructure at the Ministry of Planning, Development & Special Initiatives briefed the meeting on Pakistan’s regional land connectivity and the potential of Gwadar Port for transshipments. The Minister directed the hiring of a professional consultant to formulate a comprehensive operationalisation plan for the port.
Pakistan’s Ambassador to Turkmenistan noted that the Turkmenistan government is currently importing large quantities of white marble from Vietnam. He highlighted the potential for Pakistan, especially Balochistan’s Ziarat White Marble, to tap into this market.
The Minister instructed the Special Investment Facilitation Council (SIFC) to hold a consultative meeting with the provincial government of Balochistan to develop a value proposition for the export of Ziarat White Marble to Turkmenistan and share it with Pakistan’s mission in Turkmenistan.
The Minister also announced that a separate meeting would be convened with the Chairman of the China Overseas Port Holding Company (COPHCL) to discuss a marketing plan for Gwadar Port and create a strategy to attract more business and trade.
Sources further revealed that the government had decided that 60% of public sector imports of wheat, sugar, and fertilizer would be routed through Gwadar. A formal notification has been issued, but the decision has yet to be implemented, as these goods have not been imported through the public sector via Gwadar.
Additionally, the suspension of transit trade with Afghanistan and the lack of transshipment of Chinese goods through Gwadar Port under the China-Pakistan Economic Corridor (CPEC) due to security concerns have also contributed to the port’s underutilization.
In response, Chairman of the Gwadar Port Authority (GPA), Psand Khan Buledi, who has been attending meetings in Islamabad, stated that regular discussions are being held to address the port’s shortcomings. He emphasized that while the port is operational, efforts are underway to make it fully operational as soon as possible.
“Ships arrive according to demand and supply, and the next shipment is scheduled for January 28, 2025,” he said. Regarding imports from China for export to other countries, Buledi stated that the relevant information may be available with the federal government.
He also confirmed that the GPA has sent letters to all concerned ministries to ensure that 60% of public sector imports of wheat, sugar, and fertilizer are routed through Gwadar Port.
Copyright Business Recorder, 2025
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