Gwadar Port in Pakistan has not become commercially successful despite Chinese investment — Dawn
Gwadar Port in Pakistan's Balochistan province has not turned into a major commercial hub more than a decade after the announcement of the China-Pakistan Economic Corridor (CPEC). At the same time, China continues to finance infrastructure in the city, viewing the port primarily as a long-term strategic asset, Dawn reports.
Chinese President Xi Jinping announced the CPEC initiative during a state visit to Pakistan in 2015. The project envisaged the creation of transport and other infrastructure between Gwadar Port and Kashgar in China's Xinjiang. A Chinese state-owned company received the right to operate the port under a 40-year lease agreement.
Infrastructure without active operations
China financed, among other projects, the $168 million Eastbay Expressway, which connects the port with the Makran Coastal Highway, as well as the new $320 million Gwadar International Airport. The airport, described as Pakistan's largest, was ceremonially opened in January 2025, but it is still not operating.
Gwadar is located in Pakistan's poorest province, where an insurgency has been ongoing for a long time. According to the publication, since 2018, militants from the banned Balochistan Liberation Army have repeatedly attacked Chinese workers and facilities both in the province itself and beyond it. On January 31, the group carried out coordinated attacks in 12 districts of Balochistan, including Quetta and Gwadar District.
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Strategic role of the port
Islamabad-based professor of political economy Aasim Sajjad Akhtar believes that Beijing's major expenditures have created an irreversible presence in Gwadar. According to him, China has incurred significant sunk costs as part of a broader plan to gain access to the Strait of Malacca and the Strait of Hormuz.
Oxford University professor of global history Peter Frankopan noted that Gwadar is more of a geopolitical insurance policy — a logistics, energy and naval hub designed for strategic resilience rather than quick commercial returns. The port is located near the entrance to the Strait of Hormuz.
In April, the cargo vessels MV HOM Leader and MV Dolphin 103 called at Gwadar. Pakistan's Minister for Maritime Affairs Junaid Chaudhry, after the start of the conflict between the United States and Iran and the closure of the Strait of Hormuz, announced a significant reduction in port tariffs to encourage international transit. The publication notes that Gwadar's location next to Iran gives it the shortest sea route to Iran and Central Asia.
