Pakistan: Gwadar port faces setbacks due to lack of planning, infrastructure
Challenges Facing Gwadar Port in Pakistan
Gwadar port, located in southwest Pakistan, is facing difficulties in realizing its potential despite significant investments. Built in 2007 for nearly USD 250 million, it has been managed by the China Overseas Ports Holding Company since 2013. However, since the first container ships arrived in 2016, the port has not attracted substantial commercial activity.
Key Issues
Experts point to insecurity, inadequate infrastructure, and a lack of a clear operational strategy as major hurdles. A recent meeting chaired by Pakistani Minister for Planning and Development, Ahsan Iqbal, emphasized the absence of a comprehensive plan to boost trade at the port. The port's underperformance is also linked to broader governance issues in Pakistan, including a lack of long-term planning.
Current Status
Despite close to a billion dollars invested in infrastructure, including a new airport, Gwadar remains underutilized. In the 2022-2023 fiscal year, it handled less than 1% of Pakistan's seaborne trade, making it the smallest of the country's three major ports. The port's challenges are further compounded by the lack of basic facilities like water, electricity, and security.
Future Prospects
While the new Gwadar airport is seen as crucial for future growth, current conditions in the city hinder its ability to support economic development and international trade. Muhammad Faisal, a foreign policy expert, noted that the port's stagnation reflects deeper governance failures in Pakistan.
Doubts Revealed
Gwadar Port
Gwadar Port is a large seaport located in the city of Gwadar in Pakistan. It is meant to be a major hub for trade and shipping.
China Overseas Ports Holding Company
This is a company from China that has been managing the operations of Gwadar Port since 2013. They are responsible for running the port and making it successful.
Infrastructure
Infrastructure refers to the basic physical systems and structures needed for a place to function, like roads, buildings, and power supplies. At Gwadar Port, the infrastructure is not fully developed, which is causing problems.
Minister Ahsan Iqbal
Ahsan Iqbal is a government official in Pakistan. He recently led a meeting to discuss the problems at Gwadar Port and the need for a better plan to make it work well.
Governance issues
Governance issues mean problems with how the port is being managed and run. This includes making decisions and ensuring everything works smoothly.
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