Pakistan has urged the China Overseas Port Holding Company (COPHC), the operator of Gwadar Port, to submit a clear, time-bound business plan aimed at accelerating industrial development under the China-Pakistan Economic Corridor (CPEC). This demand was raised during a recent meeting of the CPEC Joint Working Group on Gwadar, just ahead of Prime Minister Shehbaz Sharif’s visit to China for the Shanghai Cooperation Organization (SCO) summit.
Pakistani officials stressed the need for a comprehensive roadmap that outlines investment timelines, performance benchmarks, and operational forecasts. They also requested a well-defined strategy for the North Free Zone, including details on its design, financing, construction, and long-term maintenance.
In addition to infrastructure planning, Pakistan has asked COPHC to expand port services by introducing value-added activities such as ship refueling, LPG handling, and ship-to-ship transfers. To attract more Chinese industries to Gwadar, the government encouraged COPHC to organize focused investment roadshows.
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Despite progress on major infrastructure projects like the Gwadar International Airport, allied facilities, and the Eastbay Expressway, officials noted that both the port and its associated free zones remain underutilized. To support operations, Pakistan has already implemented several facilitation measures, including regulatory approvals, tax exemptions, and policy support. Specific steps include allowing Chinese firms to export potassium sulfate, easing transshipment procedures, and routing 60% of public sector cargo through Gwadar.
However, Chinese stakeholders have called for further government cargo allocation, more policy incentives, and additional shipping routes to enhance the port’s commercial viability. In the meantime, infrastructure development continues, with power and water supply fully established in the free zones and a new 1.2 million gallons-per-day desalination plant now operational. Other improvements include the second phase of the Eastbay Expressway and proposals for a railway link to improve connectivity.
Pakistan is currently in talks with China to secure grants to complete these critical infrastructure projects. While Chinese officials have appreciated recent efforts such as faster approvals and reduced trade barriers, Pakistani authorities have emphasized the need to quickly develop the internal infrastructure of the North Free Zone and finalize a five-year investment plan. The broader aim is to transform Gwadar into a thriving regional trade hub and a competitive transshipment gateway.
