A Senate Committee Concerned About Gwadar Port’s Inactivity Calls for Immediate Tax-Free Zone and Reforms to Encourage Trade in Central Asia

Those who wish to see Pakistani ports, particularly Gwadar, serving as crucial hubs and commercial channels for Central Asian nations are discouraged by the Senate Standing Committee on Planning’s declaration that four Pakistani ports are greater than all the ports in the region. The Standing Committee members also insisted that Gwadar be designated a tax-free zone in order for it to grow. The Gwadar Port Authority and customs authorities set the shipping fees for the ports, according to the briefing presented to the committee on Thursday, May 15, 2025. The briefing makes it apparent that Gwadar Port is not yet functioning, whereas Chabahar Port, which began development after Gwadar Port, is operational today.

There were only four ships coming at Gwadar Port in 2024 compared to 70 in 2009. The explanation for this was that shipping costs are higher at Gwadar Port. Prime Minister Shehbaz Sharif chaired a high-level meeting in Karachi last July 7 and ordered several measures to support Central Asian trade, including lowering fees for LNG ships. Later, in a follow-up meeting in Islamabad, Sharif ordered the formation of a regulatory body for the shipping industry, which makes this situation especially surprising and calls for investigation.

To activate Pakistani ports, particularly Gwadar, as a hub for Central Asian trade, comprehensive measures, including the establishment of a free zone, should be put into place as soon as possible. The functioning of our ports, which are the capital, will be crucial to the expansion of the economy of Pakistan as well as many other nations, including those in Central Asia.