The Struggles of CPEC’s Jewel: Gwadar’s Ongoing Crisis

More than ten years after the launch of the China-Pakistan Economic Corridor (CPEC), Gwadar, the supposed crown jewel of this multibillion-dollar initiative, continues to face severe shortages of essential services. Despite 78 high-level review meetings, the port city still lacks sufficient clean water and indigenous electricity, severely hampering its development.

Lack of Progress Despite Frequent Review Meetings

Federal Minister for Planning, Ahsan Iqbal, chaired the most recent CPEC review meeting, voicing his frustration over the ongoing delays in connecting Gwadar to Pakistan’s national power grid. The Quetta Electric Supply Company (Qesco) and the Power Division were directed to submit an updated progress report within five working days. This directive follows a similar one issued two months ago in January 2025, when the minister had asked for compliance within a week.

Gwadar’s Energy Crisis: No Connection to the National Grid

Gwadar remains dependent on imported electricity from Iran, despite Pakistan having surplus power production. The country pays over Rs2.1 trillion in idle capacity charges to power producers, yet it has failed to establish a proper transmission system to supply Gwadar with electricity. Lack of a well-defined policy has been a major roadblock.

In the last meeting, Iqbal had also instructed authorities to coordinate with the Gwadar Port Authority and the Pakistan Navy to ensure electricity supply to Gwadar Port and the South Free Zone. However, no substantial progress has been made in this regard.

Delays in Water Infrastructure Development

Beyond electricity, clean drinking water remains scarce in Gwadar. The desalination plant, which was supposed to resolve this issue, has yet to be made operational. China had already provided necessary equipment, including 10,000 solar panels in May 2024, another 5,000 in September, and 150 water filtration plants along with 10 tube well solarisation units in August 2024. However, the installation of this equipment has yet to take place.

Government’s Directives for Water Supply

Iqbal has directed the Ministry of Food to formulate a plan within three days for the distribution and installation of the Chinese-provided equipment. He has further ordered a meeting with all provinces to ensure a streamlined plan is devised within two days.

The Stalled Transshipment Facility Proposal

Pakistan had earlier proposed using Gwadar Port as a transshipment facility, but the lack of basic infrastructure has rendered this initiative ineffective. The CPEC initially saw rapid progress, particularly in the first seven Joint Cooperation Committee (JCC) meetings. However, since 2017, six additional JCC meetings have taken place, but no major breakthrough has been achieved.

Preparations for the 14th JCC Meeting

The latest meeting also reviewed preparations for the upcoming 14th JCC meeting, scheduled for July 2025. The Pakistani mission in Beijing has been directed to actively coordinate with the Chinese authorities to ensure that pre-meeting working groups are held in March and April.

ML-1 Railway Project: Slow Progress Continues

A representative from Pakistan Railways provided an update on the Karachi-Hyderabad section of the Main Line-1 (ML-I) project. The Joint Technical and Financial Working Group met on January 16, 2025, but discussions on technical and financial matters remain unresolved. The Chinese side is still in the process of finalizing its technical and financial experts for a visit to Pakistan.

Government’s Strategy for CPEC’s Second Phase

Ahsan Iqbal directed Pakistani officials to push for the early arrival of Chinese experts for the second phase of CPEC, which prioritizes the development of green corridors. The minister stressed the need for increased engagement between the Economic Affairs Division and Chinese authorities to accelerate progress.

FAQs

1. Why is Gwadar still facing electricity shortages?

Despite Pakistan’s surplus electricity, a lack of proper transmission lines and policy implementation has left Gwadar dependent on imported power from Iran.

2. What steps have been taken to resolve the water crisis in Gwadar?

China has provided solar panels, water filtration plants, and tube well solarization units, but their installation has been delayed.

3. When will Gwadar be connected to the national grid?

The government has directed the Quetta Electric Supply Company (Qesco) and the Power Division to submit a progress report within five days, but no fixed timeline has been announced.

4. What is the status of the Karachi-Hyderabad railway project?

Technical and financial discussions are ongoing, and China is in the process of finalizing a working group visit to Pakistan.

5. What are the priorities for the second phase of CPEC?

The second phase focuses on green corridor developments, emphasizing sustainability and eco-friendly infrastructure projects.