Ayesha Saba

As global trade dynamics shift and interest in alternative trade routes grows, Pakistan needs to actively work on integrating Gwadar Port into regional trade networks. With strategic infrastructure investments, policy reforms, and strengthened regional cooperation, Pakistan can establish Gwadar as a key trade hub linking South Asia to Central Asia and beyond.

During an interview with WealthPK, Adnan Khan Yousafzai, a socioeconomic development specialist at the Centre of Excellence-China-Pakistan Economic Corridor, said currently, Pakistan’s trade with Central Asia remains limited, primarily due to infrastructure gaps and procedural inefficiencies. He argued that Gwadar, with its strategic location and direct access to warm waters, offers a unique advantage for handling regional trade.

“However, to capitalise on this potential, Pakistan needs to streamline customs procedures, enhance port efficiency, and negotiate favourable trade agreements with Central Asian countries. A well-structured policy framework is crucial to reduce transit costs and establish Gwadar as a preferred gateway for CARs' exports and imports,” Yousafzai added. He added that while the CPEC has improved road and rail connectivity, further investments are required to make these trade routes more efficient.

“Additionally, there is a need to address regulatory hurdles that slow down trade flows, such as multiple clearance requirements and inconsistent tariff structures.” “Gwadar Port also holds significant potential for transshipment to Gulf countries, providing vessels of up to 50,000 deadweight tonnes (DWT) with economical and timely access to the Persian Gulf,” he said, noting that this capacity could make Gwadar a competitive alternative to other regional ports by offering cost-effective and time-efficient logistics solutions.

“By strengthening its port operations and integrating with global shipping routes, Pakistan could position Gwadar as a key transshipment hub for regional and international trade,” he said. He pointed out that the development of port cities is a great challenge for the government of any country. “Gwadar is located at the last corner of Pakistan’s map and is in the farthest area.” Federal Minister for Planning, Development & Special Initiatives Ahsan Iqbal has highlighted the strategic importance of Central Asian countries in Gwadar’s operationalisation.

“We need to actively engage with these countries and offer them a compelling value proposition for using Gwadar as their preferred trade route,” he said. The minister underscored the importance of robust security arrangements to ensure seamless port operations. He has directed the departments concerned to identify locations for rest areas along the Karachi-Gwadar route and ensure mobile network coverage for improved connectivity.

Credit: INP-WealthPk