Pakistan’s Gwadar Port: ‘White Elephant’ – OpEd
By Patial RC
Gwadar Port, built more than a decade ago, remains a non-starter, turning the multi-billion-dollar infrastructure facility into a ‘White Elephant’ instead of becoming a transshipment hub. This was the gist of a high-level meeting on the operationalisation of Gwadar Port (‘Crown Jewel’ of $50bn China-Pakistan Economic Corridor CPEC) called on the directives of the Prime Minister and presided over by Planning and Development Minister Ahsan Iqbal. “Without port activities and business opportunities, Gwadar port has been turned into a “White Elephant”, he said ( Dawn, January 9th, 2025).
The $62bn CPEC, formally launched in 2015 was to be a “Game-Changer” for Pakistan’s economy. It included the construction of a flagship seaport Gwadar, power plants and road networks across the country. The CPEC is a component of China’s ambitious Belt and Road Initiative (BRI), a massive network of roads, bridges and ports spread across over 100 countries that Beijing hopes will recreate the ancient Silk Road trade routes linking Europe and Asia. The BRI is seen as an attempt by China to further its influence abroad with infrastructure projects funded by Chinese investments across the world.
The narrative around China’s alleged “Debt-Trap diplomacy” has gained attention globally, particularly in cases involving large-scale infrastructure projects under China’s BRI. Pakistan’s Gwadar Port is often highlighted as a critical example in this discussion, with critics referring to it as a “White Elephant.” The CPEC was estimated to generate more than ‘Two Million Employment’ opportunities for Pakistanis, but government data says less than 250,000 jobs have been created so far.
Gwadar Port: Geopolitical Significance:
For China, Gwadar is less about immediate economic returns and more about long-term strategic positioning in the Indian Ocean and adding another pearl to its ‘String of Pearls” to strangle India.
Gwadar port located in Balochistan lies at the crossroads of the Persian Gulf and the Arabian Sea, making it a vital point for trade and energy routes. The plan for CPEC is to connect Gwadar with Xinjiang, the Uyghur Autonomous Region, through a network of highways, railways, and pipelines. The port is a key part of the CPEC aimed at improving connectivity between Pakistan and China. Gwadar has the potential to serve as a major transshipment hub and facilitate trade for Central Asia, the Middle East, and South Asia.
CPEC would provide a shorter route for imports of Middle Eastern oil. The 12,000-km oil transportation journey from the Gulf is likely to get reduced to about 2,400 km with a large saving. Strategically it also negates China’s Malacca dilemma of vulnerable geopolitical tensions and furthers its ambition to have a base in the Arabian Sea. Gwadar port is the heart of the CPEC projects which lies in Balochistan. Yet nearly a decade later, questions hover over the future of the project.
Fault Lines Facing Gwadar Port
- Gwadar is situated in Balochistan, a region plagued by insurgency and unrest. Frequent attacks on Chinese personnel and assets have created a security dilemma for China and Pakistan.
- The Baloch rebels now blame the Govt of Pakistan in connivance with the Chinese of looting their resources through the BRI-CPEC ambitious projects with no benefits to its people.
- Despite heavy investments, Gwadar Port has not yet achieved significant operational activity or revenue generation. Lack of industrial and commercial activity in the region undermines the port’s utility.
- The business is yet to come to Gwadar, CPEC projects have not benefited local businessmen and traders, and there is hardly any business in Gwadar these days.
- China’s loans for Gwadar-related projects, combined with Pakistan’s fragile economy, exacerbate the country’s debt burden.
- The development of Gwadar has faced resistance from local communities who argue that they have not benefited from the projects. A move not supported by residents of the province.
- Issues such as lack of water, electricity, and infrastructure for locals persist, fueling protests.
Gwadar as a “White Elephant”?
- Gwadar flagship seaport the costly project has so far failed to deliver the expected benefits.
- It remains underutilized despite massive investments.
- The anticipated economic transformation of the region has not materialized.
- The cost of maintaining the port, coupled with low revenue, makes its sustainability questionable.
The “Debt-Trap diplomacy” theory suggests China intentionally offers unsustainable loans to gain strategic leverage. However, studies reveal that much of Pakistan’s external debt stems from external financing from multilateral institutions and not solely from China. While there are risks, many argue that poor planning, mismanagement, and failed governance in Pakistan are equally responsible for its poor economic growth.
Gwadar Port exemplifies the complexities of China’s BRI investments. While it has immense potential, structural, political, and security challenges hinder its success. Gwadar’s fate depends on Pakistan’s ability to address local grievances, improve governance, and foster economic activity. Terrorism has, of course, affected Pakistan’s national economy and other projects such as CPEC projects. The Baloch separatists especially targeting China. In Afghanistan, the Pakistan Taliban and their allies have also started regrouping in the Afghan region bordering Khyber Pakhtunkhwa province and that has further raised the threat levels for CPEC.
It is the Gwadar Port flagship project of the BRI suffering in Pakistan due to internal turmoil and disturbed security situation in Balochistan. Appears the CPEC after a decade with promised opportunities has not taken off to fulfill the role of a game-changer in the regional development as dreamt by Pakistan. The under mentioned statements tells the truth:
The Planning and Development Minister Ahsan Iqbal terming it as anear “White Elephant” and “There is no CPEC in Gwadar, except security check posts that exist in the name of CPEC in Gwadar. So, if you ask me, CPEC projects in Gwadar are the names of security check posts,” says a Pakistani journalist.