Government Pushes to Revive Gwadar Port After 10 Years
- Fahad Bin Khalid
- January 14, 2025
- 11:39 am
- 30
- Current Affairs
Gwadar Port, despite being built over a decade ago, struggles as an underutilized hub. The government is working to boost Gwadar Port revival under the $50 billion China-Pakistan Economic Corridor (CPEC) initiative. However, the port’s potential as a key transshipment hub has not yet been realized, raising concerns among stakeholders.
A Key Focus on Gwadar Port Revival
Gwadar Port’s underutilization remains a significant issue for Pakistan’s economy. The port was expected to become a major trading hub, driving economic growth. Instead, it has remained inactive, failing to attract significant trade activities. During a high-level meeting led by Planning and Development Minister Ahsan Iqbal, the lack of progress was addressed.
Challenges Hindering Gwadar Port’s Growth
Gwadar Port has faced multiple challenges since its inception. A primary issue is the lack of effective marketing to attract global trade. The Ministry of Maritime Affairs (MoMA) and the National Logistics Cell (NLC) have been criticized for their failure to market the port. As a result, Gwadar has failed to match the development of other regional ports.
In addition, local residents have faced issues like water and electricity shortages, making the situation worse. These civic problems have fueled local unrest, which is sometimes exploited by external factors. The lack of promised job opportunities further contributes to the challenges in the region.
Prime Minister’s Push for Immediate Action
To jumpstart operations at Gwadar Port, Prime Minister Shehbaz Sharif has ordered that 60% of public sector cargo be routed through the port. This decision aims to generate initial port activity and pave the way for future growth. The prime minister has also instructed Planning Minister Ahsan Iqbal to investigate the reasons for the port’s slow progress and suggest solutions.
Addressing Marketing Failures
Ahsan Iqbal expressed concern about the lack of efforts to market Gwadar Port. He noted that the Balochistan government had not played a significant role in promoting the port. He criticized officials for not approaching shipping companies and traders to highlight the cost benefits of using Gwadar over other traditional routes.
Iqbal emphasized that this marketing should have been in full swing two years ago. The lack of a clear marketing strategy has resulted in missed opportunities for generating trade and providing employment to local people.
Learning from Regional Competitors
During the meeting, Ahsan Iqbal highlighted the importance of proactive marketing. He pointed out how neighboring countries successfully build reputations for their ports before launching them. These countries effectively market their ports and attract attention even before their products are fully available.
Iqbal stressed that Pakistan should adopt similar strategies to attract international trade and make Gwadar a competitive transshipment hub.
Proposed Solutions for Gwadar Port’s Revival
The government has proposed several solutions to boost Gwadar Port’s operations. One major suggestion is to hire an international consultant who would analyze the costs and benefits of using Gwadar compared to other regional ports. The consultant would also suggest ways in which Gwadar can offer shorter and cheaper shipping routes.
Iqbal also stressed the importance of Pakistani missions abroad to promote Gwadar more effectively. He urged the NLC to reduce cargo rates to make the port more appealing to traders. Instead of focusing on one cargo, Iqbal advised thinking in terms of generating greater revenue through multiple cargoes at lower rates.
Renewed Commitment to Gwadar Port Revival
The high-level meeting concluded with a renewed commitment to reviving Gwadar Port. Ahsan Iqbal assured that all suggestions would be reported to the prime minister for immediate implementation. The government is determined to make Gwadar Port a game-changer for Pakistan’s trade and economic growth. With the right marketing strategies and better infrastructure, Gwadar Port can become a leading regional hub.
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