Despite being built over a decade ago, Gwadar Port remains underutilised. Instead of thriving as a key transhipment hub, it has become a white elephant, disappointing expectations tied to the $50 billion China-Pakistan Economic Corridor (CPEC).
This was the core issue discussed in a high-level meeting led by Planning and Development Minister Ahsan Iqbal. The meeting was held on the directive of Prime Minister Shehbaz Sharif to address the lack of progress in operationalising Gwadar Port. The minister criticised officials from the Ministry of Maritime Affairs (MoMA) and the National Logistics Cell (NLC) for failing to market the port effectively.
Gwadar Falls Behind
All stakeholders, including the government, voiced concerns about Gwadar’s inability to match the progress of other regional ports. The lack of trade activities has stunted business growth and denied local residents promised job opportunities.
Basic civic issues like water and electricity shortages have made the situation worse. Officials believe this neglect has fueled local unrest, often exploited by external factors.
PM’s Push for Action
To kickstart operations, Prime Minister Shehbaz Sharif recently ordered that 60% of public sector cargo be routed through Gwadar. This measure aims to create initial port activity. He also instructed Planning Minister Ahsan Iqbal to investigate why the port has failed to take off and suggest solutions.
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Marketing Failures
During the meeting, Ahsan Iqbal expressed concern about the lack of representation from the Balochistan government. He noted, “Unfortunately, nothing has been done for marketing of transhipment cargos.”
He criticised officials for failing to approach shipping companies and traders to highlight the cost benefits of using Gwadar over traditional routes. “This comparative analysis for competitive marketing should have been in full swing two years ago to generate trade and shipment activities and provide employment opportunities to the local people,” he added.
Learning from Competitors
Iqbal highlighted how neighbouring countries build reputations for their ports before launching them. He emphasised the importance of proactive marketing to attract regional and international trade. “We should learn from neighbouring countries who build product reputations abroad and garner consumer attention even before the products are rolled out,” he said.
Proposed Solutions
To address the issue, the minister directed authorities to hire an international consultant. The consultant would analyse the costs and benefits of using Gwadar compared to other regional ports. They would also outline how Gwadar could offer shorter and cheaper shipping routes to attract global traders.
Iqbal stressed the need for Pakistani missions abroad to promote Gwadar effectively. He also urged the NLC to lower its cargo rates to make Gwadar a more appealing option. “Do not think in terms of one cargo but greater revenue through 10-15 cargoes at cheaper rates,” he advised.
The minister assured participants that all suggestions made during the meeting would be reported to the prime minister for immediate implementation. This signals a renewed commitment to realizing Gwadar Port’s potential as a game-changer for regional trade and economic growth.
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