Handing over Gwadar port to China best solution: PEW


The Pakistan Economy Watch (PEW) on Tuesday welcomed the decision by the government to hand over management of Gwadar deep-water port to China following the pull-out of Singapore’s PSA International.
Willingness on the part of Beijing to take control of the port will encourage investment and professional handling of port operations. It will bring two countries closer and promote social and economic development, it said.
Gwadar is close to the Strait of Hormuz through which much of the Gulf’s oil exports are carried to other countries while converting it into an oil pipeline hub best suit Chinese interests, said Dr. Murtaza Mughal, President PEW.
Since Pakistan is unable to exploit opportunities in strategically important port of Gwadar, the decision seems only option which will also open new economic opportunities for people of Balochistan in shape of around $10 billion Chinese investments, he added.
Mughal said that this will be another major Chinese contribution to the development of Pakistan’s infrastructure construction which is part of Beijing’s continued commitment to support their friends become self-reliant.
Both the friendly countries and all-weather allies will stand beneficial from a deal on country’s only deep water and transhipment port from strategic and economic stand points, he observed.
It may be mentioned that Gwadar was developed by the Chinese government at a cost of $288 million which was later handed over to SPA International under a 40-year agreement in 2007 for management, operations, maintenance and development.
However, SPA and its partners could not fulfil contractual obligations including investment of $775 million due to some reasons.
Mughal demanded of the government to offer tax exemptions, complete highways network and take steps to safeguard Chinese investments as no other country will be willing to invest in mega projects in Pakistan due to a variety of reasons including adverse Western sentiments.
China is a trustworthy friend and has always supported Pakistan against all odds and in difficult times, he said adding that the visit of PM Raja Pervez Ashraf to China at this time is of critical importance.


  1. A brilliant move to award the management of Gawadar deep sea port to China. This must be followed by granting management contract to foreign powers for running the PIA, WAPDA, NSC and Pakistan Steel.

  2. it is very good decision made by the goverment. pakistan must now provide full security assistance to chinese invester because the investment will help pakistan to boost up its economy

  3. Govt has admitted it failure to run different departments. How can it run country. Country should be given to China or Dr. Mughal who I am sure can run it better than the current corrupt elite.

  4. Dr. Sahib your article is silent about as to why PSA from a developed country like Singapore failed in Pakistan.

  5. we rejected the decision of handing over the Gwadar Port to China because the federal government did not take the provincial government into confidence. The Balochistan government has ability to handle the port.

  6. It is great to know that Pakistan has handed over the management of this very vital port to our greatest friend. It was only a few months ago that Pakistan had refused to do that because " it had contract with Singapore company " American owned no doubt. They had however promised to do so " when the contract expires in 2037 ". I do hope that not only will China run this port to Pakistan's and China's benefit but China and Pakistan will go ahead and build Word's most powerful navel base. For Gwadar must play major part source of Security for the Middle East and liberation of Arab nation from artificially created Arab states. Indeed in in geopolitical terms Gwadar and Strait of Hormuz have no EQUAL.

Comments are closed.