Gwadar once hailed as the cornerstone of Pakistan’s economic future, has now turned into a dilemma and an enigma. Despite being wrapped around in many grand visions and ambitious declarations over the past two decades, real progress has been stifled due to inconsistent state policies, security concerns, and a lack of serious commitment from successive governments. This article aims to explore the background of this project, its potential, challenges/barriers, and highlights the steps needed to transform the fate, that could change the country’s fortunes.
The Visionary Start
In 2002, General Pervez Musharraf, in collaboration with China, performed the earth-breaking ceremony for Gwadar Port. By 2007, five berths were constructed, and the Port was inaugurated. Gen Pervez Musharraf envisioned Gwadar as one of the world’s largest commercial ports and a global business hub, with plans to build 15-20 more berths by 2025 and 120 berths by 2050. The announcement sparked unprecedented investor interest, resulting in a significant economic boom from 2002 to 2006. However, the momentum was short-lived. Dr. Allah Nazar launched the BLF movement in 2006 and the killing of Nawab Akbar Bugti triggered widespread unrest across Balochistan. Gwadar, too, became embroiled in violence, leading to the departure of investors and the labor class by 2013.
Neglect and Missed Opportunities
During the PPP government (2009-2013), little emphasis was placed on Gwadar’s development, and no concrete measures were taken to address the worsening law and order situation. From 2014 to 2017, the PML-N leadership formalized the China-Pakistan Economic Corridor (CPEC), with Gwadar’s development as its flagship project. While this step initially reignited investors’ interest, the excitement quickly faded as no concrete vision, policy or strategy was announced nor any significant projects and substantial funding were allocated to Gwadar. The PTI government (2018 – 2022), was void of ideas for Gwadar’s development. PDM’s first government formed in 2022 was more focused primarily on its own political survival, leaving Gwadar’s development sidelined. The present PDM government under PM Shehbaz Sharif has even skipped mentioning Gwadar. The concerned officials avoid visiting the port city and at the same time have not announced any policy/project for the development of their once recognized flagship project.
In 2016, a convoy of 200 containers made a successful journey from western China to Gwadar in just one week. At the time, General Raheel assured that this would be a regular occurrence, bringing benefits to the people of Balochistan. However, this initial promise proved to be a one-time event, far removed from the reality on the ground. A grand ceremony was held in Gwadar to celebrate this achievement, but it ultimately proved to be more of a symbolic gesture than a reflection of the actual progress made.
The New Gwadar International Airport was virtually inaugurated during the SCO Conference in 2024 by PM Shehbaz Sharif and his Chinese counterpart. The facility became operational in January 2025 with the landing of an ATR aircraft, a milestone overshadowed by years of stagnation and unmet promises.
The Security Quagmire
From 2006 onward, Gwadar and Balochistan have faced relentless security challenges. The region has witnessed numerous violent incidents, including attacks on the PC Hotel, killings near Buzi Pass, ambushes of military personnel near Pasni, assaults on Coast Guards in Pishukan, and targeted killings of workers in Gunz. In October 2024, coordinated attacks across Balochistan-primarily targeting an ethnic group further deteriorated the situation. The Bela suicidal attack involved two suicide bombers originating from Gwadar district. Moreover, the Chinese were subjected to attacks in multiple locations throughout the country, besides above narrated incidents.
Today, the security environment in the entire country remains dire, particularly in the western provinces, which is more seriously neglected. Businessmen are obviously hesitant to turn towards Gwadar, let alone invest. Hiring local labor or personnel is fraught with risk, as affiliations with militant groups like the BLF are often unclear. The Punjab labor force, in particular, are frequent target at the hands of BLF. Under such an environment, no investor will commit to Gwadar, and its development will remain a distant dream. The government’s inability to secure people and investments has shattered confidence, requiring colossal efforts to rebuild trust.
A Dormant Port
Despite being branded as the flagship project of CPEC, Gwadar Port remains largely dormant. No regular transshipment or transit trade has been initiated. The port’s infrastructure is underutilized. Basic amenities such as uninterrupted water and electric supplies are non-existent. Successive governments have failed to deliver on promises, leaving both national and international investors disillusioned.
The CPEC 2 Predicaments
The Prime Minister’s 2024 visit to China brought discussions of the CPEC 2 plan, but progress remains stalled. The Chinese, frustrated by unresolved CPEC 1 dues and concerns over fund mismanagement, are reluctant to invest further. CPEC 2 remains confined to paper, with no tangible projects to operationalize Gwadar Port or enhance its berthing capacity for transshipment and transit trade with China and Central Asian Republics (CARs). Without decisive action, even the promise of CPEC 2, risks fading into obscurity as there is no major announced project for Gwadar.
URAAN Pakistan
The federal government has recently announced the launch of the URAAN Pakistan program, which has raised significant concerns amongst business communities. In the past, the initiation of such programs was also done with a lot of propaganda and tall claims but eventually, all such efforts failed.
Firstly, the poor law and order situation in Khyber Pakhtunkhwa and Balochistan provinces severely hinders economic activities, making the realization of URAAN in these provinces highly improbable.
Secondly, Sindh, which has been under PPP governance for decades, has shown little progress in terms of development. Expecting a turnaround or meaningful economic growth or URAAN of the province at this stage is self-deceptive.
Thirdly, over two-thirds of Punjab, particularly southern Punjab, has remained underdeveloped for decades under PML-N leadership. While northern Punjab, including Lahore, has definitely experienced some growth and progress. It is thus safe to assume that under the URAAN program, Punjab will be befitted but the same cannot be claimed for the rest of the country. This government plan certainly does not represent “URAAN Pakistan”.
Lastly, the URAAN Pakistan program has not mentioned the development projects of Gwadar/CPEC, which is a major concern. Without incorporating Gwadar’s development projects, mainly the port operationalization for transshipment and transit trade, industrial city, oil city, fisheries and tourism, etc, the URAAN Pakistan program will never take off and achieve the desired objectives. The program appears to be nothing more than a misleading slogan designed by the sitting government of PML N to divert public attention and secure their tenure —- its dilemma and enigma.
A call to action: the development of Gwadar is the very
Foundation, backbone and guarantor of Uraan Pakistan.
National Failure
Gwadar Port’s prolonged inactivity after nearly two decades reflects a broader national failure to execute mega projects. Despite repeated assurances, no government has managed to operationalize the port or capitalize on its strategic importance. Recent milestones, such as the airport’s inauguration, highlight the stark contrast between rhetoric and reality.
This neglect has strained Pakistan’s “sweet and deep friendship” with China, jeopardizing a crucial partnership. Last year, the Chinese government through their foreign office handout had in a clear and unambiguous term downgraded the status of friendship towards Pakistan. Unfortunately, nothing much has been done at our end to change this downward trend.
Gwadar’s success is essential not just for the country but for the region as a whole. Collaboration with China, regional Countries, and other global partners is imperative to revive Gwadar’s potential, give impetus to URAAN Pakistan, and secure Pakistan’s economic future.
China and Pakistan must be right hands with each other, with unwavering commitment to their shared goals and interests for mutual development. Both countries should work together to achieve mutual benefits in the areas of geopolitics, geo-economics and geostrategic, regionally and internationally, in both short and long terms. By doing so, they can address common challenges, foster shared interests, and shape a common prosperous destiny.
Gwadar Potential
Gwadar has huge potential. Simply put, “Imagination is the Limit.” Due to its geographical location, Gwadar can become a major hub for the country’s economic rise. A few major potentials are:
>Transshipment of 40 million TEU.
> Transit trade with Central Asia, China, and even with India.
> International tourism, thanks to its beautiful beaches and landscape.
> Modernized fisheries, earning foreign exchange through exports.
> A booming construction industry, building everything from homes to skyscrapers.
> A futuristic industrial city, featuring cutting-edge initiatives, innovative technologies, and sustainable practices.
> An oil/petrochemical city, in partnership with or without ME, CARs, and African countries.
> A minerals city, adding value to the many minerals found in the country and region and then exporting them.
In short, Gwadar’s 600 km long coastline and 50 km depth offer vast opportunities (Annexure A). If developed, Gwadar can bring prosperity to the entire nation and put the country on par with developed nations.
The Path Forward
To unlock Gwadar’s potential, the following steps are essential:
> Operationalize the Port: Initiating regular transshipment and transit trade will revitalize Gwadar Port and attract further investments. Collaboration with China especially and other countries is imperative to revive Gwadar’s potential. It will give impetus to URAAN Pakistan, and secure Pakistan’s economic future.
> Address Security Concerns: A comprehensive strategy based on dialogue and development shall be worked out to ensure the safety of investors, laborers, and residents, force won’t work.
> Rebuild Investor’s Confidence: The government must deliver on promises, provide incentives/amenities, and create a secure environment for investment.
= Government Presence in Gwadar: High-ranking officials related to Gwadar/CPEC must establish a presence in Gwadar to make informed decisions and demonstrate commitment.
> Strengthen Ties with China: As right hands to each other, a consultative and working body between both countries shall be established. Addressing China’s apprehensions is a priority and will be vital to give momentum to the already lagging behind Gwadar/CPEC projects.
> Gwadar an Economic Project. As an economic project, all countries, especially developed and neighboring countries be invited, to participate and invest in Gwadar for their businesses. A dedicated team for national and international marketing is the requirement at the time as Gwadar/CPEC is an economic project and must be marketed globally.
> The Special Investment Facilitation Council. SIFC has been established with the primary aim of facilitating fast-track investment in the country. Gwadar presents a multitude of opportunities from various angles, including financial, business, and commercial activities. The SIFC is well-positioned to undertake Gwadar projects, expediting their development and contributing significantly to the country’s economy. Effective management of these projects will not only enhance the credibility of the Pakistan Army but also demonstrate its commitment to driving economic growth and prosperity in the country.
Conclusion
In the backdrop, Gwadar represents a dilemma and an enigma for the nation. While it holds immense potential as a regional/global economic hub, and a game changer for the country. However, lack of policy and strategy, years of neglect, broken promises, and security issues have stalled its progress. The aspirations of the people of Balochistan and Pakistan hinge on the government’s ability to determine these impediments to address the country’s economic and security issues on priority. One can only hope that the vision/motto is realized before Gwadar’s promise becomes a permanent national dilemma and an enigma, God forbid.
The motto remains clear: “Build Gwadar & Develop Pakistan.”
