Gwadar Port Authority to partner with Chinese firm to boost investments
Located in Balochistan, Gwadar Port is a strategically important deep-sea port and a key component of the China-Pakistan Economic Corridor (CPEC), a massive infrastructure project aimed at boosting regional trade and connectivity.
Last month, the government unveiled a strategic plan to expand Gwadar Port's operational capacity by introducing new shipping lines and launching a ferry service connecting Pakistan with Gulf Cooperation Council (GCC) countries.
'The initiative is part of the government's broader strategy to enhance regional connectivity, boost maritime trade, and position Gwadar as a major hub in the Arabian Sea,' Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said then. 'We aim to transform Gwadar into a strategic transhipment and logistics centre, benefiting Pakistan and the wider region.'
The LoI signed on Tuesday by Yi Jiang, representing Xinning Enterprise, outlined plans for diverse ventures and received by Umer Zaffar Shaikh, Additional Secretary of the Ministry of Maritime Affairs on the behalf of Chairman Gwadar Port Authority while Chairman Gwadar Port Authority, Noor-ul-Haq Baloch joined the event through Zoom.
'These ventures include developing Gwadar Port as a regional transshipment center, launching new industrial projects, optimising existing facilities within the Gwadar Free Zone, and relocating industries,' the ministry said.
Pakistan's PNSC partners with Chinese firm to explore maritime investments
The two sides also discussed ways to boost the performance of Gwadar Port and committed to adhering to Pakistan's legal and regulatory framework governing Gwadar's port and Free Zone operations, it added.
'They also pledged continued good-faith discussions to identify investment opportunities, finalise operational details, and establish mechanisms for cooperation.'
Chaudhry reaffirmed Pakistan government's commitment to transforming Gwadar into a global maritime gateway and industrial powerhouse, emphasising that collaborations with reputable international enterprises would accelerate Pakistan's maritime and economic ambitions.
On Monday, the government approved its first-ever ferry service licence to an international ferry operator, Sea Keepers, authorising the company to operate routes connecting Pakistan with GCC countries, according to a statement.
The new ferry service is expected to serve hundreds of thousands annually, particularly pilgrims travelling to Iran and Iraq, alongside workers and tourists bound for GCC states.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Copper slips after data shows jump in LME inventories
LONDON: Copper prices eased slightly on Tuesday after data showed stocks had risen on the London Metal Exchange while expectations of rate cuts in the United States and concern about possible disruption of supplies from Chile limited selling. Benchmark copper on the LME traded 0.5% lower at $9,642 a metric ton in official rings from an earlier session high at $9,747.5 a ton. Copper stored in LME registered warehouses rose by 14,275 tons to a total of 153,850 tons, marking a gain of 70% since late June. Producers, consumers and traders typically put their surplus metal on LME warrant - a title document conferring ownership. Traders say the copper delivered to LME warehouses is likely to have been produced in China, which is the world's largest copper consumer, accounting for more than half of global consumption estimated at around 26 million tons this year. The market is also focused on Codelco's El Teniente copper mine where operations were halted due to the death of six people after an earthquake last week. El Teniente produced 356,000 tons of copper last year. Traders said the market impact would depend on the length of the stoppage, which was not yet clear. Surprisingly weak US jobs data last week triggered bets on Federal Reserve interest rate cuts from September causing the US dollar to weaken and making dollar-priced metals, such as copper, cheaper for holders of other currencies. Strong technical resistance for copper is around $9,730 where the 21- and 50-day moving averages converge. Longer term, copper prices will depend on China's demand. 'Chinese buyers have sort of lived hand to mouth, they haven't been drawing down stock. At higher prices we did see them export some metal,' said Macquarie analyst Marcus Garvey. Garvey added the LME price will find a floor when Chinese buyers return to the market. Aluminium climbed 0.5% to $2,566 a ton, zinc added 0.6% to $2,767, lead was up 0.3% at $1,964, tin retreated 0.1% to $33,185 and nickel fell 0.8% to $14,950.
Business Recorder
2 hours ago
- Business Recorder
Rs431bn owed to Chinese power projects: PD and SBP at odds over repatriation?
ISLAMABAD: The Power Division and the State Bank of Pakistan (SBP) are reportedly at odds over the repatriation of Rs 431 billion owed to Chinese power sector projects—an amount meant to be repatriated through commercial banks, well-informed sources told Business Recorder. This issue came to light during a meeting of the Sub-Committee on Reforms, chaired by Minister for Petroleum and Natural Resources Ali Pervaiz Malik. The meeting was also attended by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar. Chinese coal-fired power projects, such as Port Qasim and Sahiwal, have been persistently writing to the Ministry of Finance, seeking clearance of these outstanding payments. Chinese IPPs face Rs500bn in unpaid dues The matter surfaced during discussions on proposed measures to mitigate currency risks for foreign investors in Pakistan. The SBP stated that no loan repayments—whether principal or interest—nor profit repatriation payments are pending with the SBP or any commercial bank. The central bank acknowledged that only a profit payment of $26.5 million is pending with one commercial bank, which it expects will be cleared soon. SBP further clarified that no verbal or written directives had been issued to commercial banks to delay LC payments or other financial transactions. However, the Power Division reported that while the power payment cycle typically spans 90 days, Rs 431 billion in payments remain stuck with commercial banks—primarily for non-energy components. A detailed ageing report presented during the meeting indicated that while no energy payments have been overdue for more than three months, non-energy payments have been pending for years. The depreciation of the rupee has further reduced the dollar value of these payments. No representatives from NEPRA attended the meeting, and no information was shared regarding eight pending cases. The SBP reiterated that no Chinese company payments are currently pending for profit repatriation or debt servicing, and it has issued no instructions—verbal or written—to banks in this context. However, the SBP was asked to provide a written report detailing all payments to Chinese companies pending with commercial banks, including ageing data. The Power Division maintained its stance that Rs 431 billion in payments are pending with various banks and remain un-repatriated by the concerned Chinese companies. NEPRA was directed to provide an update on the potential claw back of the eight cases under adjudication. No conclusive way forward was proposed during the session. The committee noted a divergence in views between the SBP and the Power Division, making it difficult to issue a clear recommendation due to the lack of clarity. The chair emphasized several core principles as essential for attracting investment: (i) adherence to due process of law ;(ii) sanctity and enforceability of contracts;(iii) provision of adequate security measures ;(iv) a competitive and transparent process, and (v) policy consistency and predictability in the medium term. Regarding the development of physical infrastructure and utility services at Special Economic Zones (SEZs) and Export Processing Zones (EPZs), the Board of Investment (BoI) informed the sub-committee that six SEZs will be marketed to Chinese investors. BoI said that 40 companies have been identified to showcase as success stories, which will be narrowed down to 5–10 for targeted promotion. The committee supported promoting six SEZs—AIIC, BQIP, KIP, Rashakai, Dhabeji, and PSM—to Chinese investors. Of these, 3,000 acres are available for development at PSM and 700 acres at AIIC, with additional land parcels available at other developed SEZs, all equipped with basic amenities. The committee recommended establishing Service Level Agreements (SLAs) to define timelines. On easing regulatory hurdles and creating a one-stop-shop mechanism integrating federal and provincial authorities, the BoI presented updates on its Business Facilitation Center (BFC) initiative. BoI highlighted the 'regulatory guillotine' efforts and modernization of the Companies Act. The Cabinet Committee on Regulatory Reforms (CCoRR) has been notified, and BoI claims that two reform packages will reduce the cost of doing business by Rs 250 billion. Three additional reform packages are in the pipeline for CCoRR approval. BoI also shared its role in integrating 20 departments with SECP, harmonizing food standards across federal and provincial jurisdictions, and reducing DRAP's medical device registration timeline from two years to 45 days. The committee recommended that BoI implement a hub-and-spoke model for BFCs linked to regional offices in the six priority SEZs. SLAs will also be developed for these centers to provide transparency and predictability for investors. On reducing port clearance times and enhancing cold chain logistics, the Secretary of the Ministry of Maritime Affairs (MoMA), along with the Chairman of Port Qasim Authority (PQA) and the General Manager (Operations) of Karachi Port Trust (KPT), briefed the committee. They reported that recent reforms have reduced consignment clearance time by 24–48 hours. However, no precise data was available on reefer (refrigerated container) occupancy or costs. It was also noted that 35–40% of consignments are routed through yellow or red channels, and various departments at ports impact both import and export processes. The chair inquired whether consignments of vetted and established investors could be moved to the green channel. The committee recommended developing a comprehensive port governance model that ensures one-window operations and standard procedures for cold chain storage, aligned with international best practices. SLAs should also be signed with investors to guarantee faster clearance of their consignments. Pre-clearance mechanisms and a grievance redressal help desk for reputable importers were also advised. Lastly, the chair took serious notice of the long-vacant post of Chairman KPT and directed the Secretary of MoMA to resolve the matter urgently. A 'look-after' charge must also be assigned without delay. Copyright Business Recorder, 2025
Business Recorder
2 hours ago
- Business Recorder
Investment boost: GPA inks LoI with Chinese firm
ISLAMABAD: The Gwadar Port Authority (GPA), Tuesday, signed a Letter of Intent (LoI) with Chinese firm Xinning Enterprise to stimulate major industrial and commercial investments at Gwadar Port and its free zone, underscoring Gwadar's growing role as a key regional hub for trade and economic activity. The LoI signed Tuesday by Yi Jiang, representing Xinning Enterprise, outlines plans for diverse ventures and received by Umer Zaffar Shaikh, Additional Secretary of the Ministry of Maritime Affairs on behalf of Chairman Gwadar Port Authority, while Chairman Gwadar Port Authority, Noor ul Haq Baloch joined the event through Zoom. These ventures include developing Gwadar Port as a regional transshipment centre, launching new industrial projects, optimising existing facilities within the Gwadar Free Zone, and relocating industries. Gwadar Port Authority to partner with Chinese firm to boost investments The Chinese business delegation, headed by Yi Jiang, Director of the All-China Federation of Industry and Commerce (ACFIC) also met with Maritime Minister Muhammad Junaid Anwar Chaudhry to discuss ways to boost the performance of Gwadar Port. The minister lauded the partnership as a significant milestone in strengthening Gwadar's strategic importance. He highlighted Xinning Enterprise's potential to boost the port's throughput, attract foreign investment, and contribute to the broader economic development of the region. Both parties committed to adhering to Pakistan's legal and regulatory framework governing Gwadar's port and Free Zone operations. They also pledged continued good-faith discussions to identify investment opportunities, finalise operational details, and establish mechanisms for cooperation. Minister Junaid Chaudhry reaffirmed the government's commitment to transforming Gwadar into a global maritime gateway and industrial powerhouse, emphasising that collaborations with reputable international enterprises will accelerate Pakistan's maritime and economic ambitions. Once fully started functioning potentially the Gwadar port can handle export and imports of multibillion dollars but as yet it was facing a number of serious challenges including start of trade with Central Asian Republics (CARs), implementation of federal government's directives to export 60 percent of local good via Gwadar and trade with Afghanistan has also yet not started from the port. Moreover, recently the maritime minister has said that the Gwadar Port can generate over $850 million in annual exports through local value-added fisheries and date exports provided with consistent investment, strategic policymaking, and improved infrastructure. Gwadar Port is a deep-sea port located in Balochistan, strategically positioned near the Strait of Hormuz. Touted as a game-changer for Pakistan's economy, the port is meant to boost regional trade, create jobs, and attract foreign investment. He maintained that Balochistan's coastline makes up 76.2 per cent of Pakistan's total coastal length, yet its fish production significantly lags behind its actual potential. To support business and connectivity in the region, the minister announced steps to improve air travel, saying that Pakistan International Airlines would increase its weekly flights to Gwadar from one to three. 'Two weekly flights between Gwadar and Karachi and one between Gwadar and Islamabad are under consideration,' he said. He added that the possibility of introducing a chartered flight mechanism to facilitate travel for businesspersons and investors was also under consideration. The federal government has already announced an ambitious plan to expand Gwadar Port's operational capacity by introducing additional shipping lines and launching a ferry service connecting Pakistan with Gulf Cooperation Council (GCC) countries. Copyright Business Recorder, 2025
