Ten years after the launch of the China-Pakistan Economic Corridor (CPEC) and 78 review meetings, Gwadar still struggles with a lack of clean water and local electricity, despite its significance as a key project under President Xi Jinping’s Belt and Road Initiative (BRI).
At the latest review meeting, chaired by Federal Minister for Planning Ahsan Iqbal, frustration was expressed over delays in connecting Gwadar to the national electricity grid.
He instructed the Quetta Electric Supply Company (Qesco) and the Power Division to submit an updated report within five days.
This follows a similar directive in January when he had asked for a compliance report within a week, but the issue remains unresolved.
Currently, Gwadar relies on electricity imported from Iran, even though Pakistan has surplus power and pays over Rs2.1 trillion in capacity charges to producers.
However, transmission line issues have prevented Gwadar’s integration into the national grid.
In the previous meeting, Iqbal had directed relevant authorities to coordinate with the Gwadar Port Authority and Pakistan Navy to energize the Gwadar Port and South Free Zone immediately.
The Power Division reported that the Cabinet Committee on Energy approved a new bulk electricity supply policy for SEZs, allowing a single contract between SEZ developers and DISCOs.
Iqbal stressed that this policy should cover SEZs, Export Processing Zones (EPZs), and Gwadar Free Zones, but officials ignored his directives.
He also raised concerns over the non-operational desalination plant in Gwadar and ordered authorities to take urgent action within a week to resolve the issue.
Although China provided significant aid between May and December last year, including 15,000 solar panels, 150 water filtration plants, and 10 tube well solar units, their distribution and installation remain pending.
Iqbal directed the Ministry of Food to develop a plan within three days to ensure efficient distribution and instructed provincial coordination for swift implementation.
Pakistan previously proposed Gwadar Port as a transshipment hub but has struggled to provide essential infrastructure.
While CPEC progressed smoothly up to the seventh Joint Cooperation Committee (JCC) meeting, six additional sessions since 2017 have failed to deliver breakthroughs.
Preparations for the 14th JCC meeting, scheduled for July 2025 with China’s confirmation, were also reviewed.
Working group meetings have been set for March and April, and Iqbal insisted that security and technology groups should meet at least a month before the JCC session.
He urged Pakistan’s mission in Beijing to actively follow up with Chinese authorities to ensure timely meetings.
The Ministry of Railways reported that on January 16, 2025, a Joint Working Group discussed financial and technical aspects of the Karachi-Hyderabad section of the ML-1 project.
China is finalizing the composition of its Technical and Financial Working Group, which will visit Pakistan soon to resolve outstanding issues.
Iqbal urged Pakistan’s diplomatic mission and the Economic Affairs Division to push for an early visit from the Chinese working group to advance the second phase of CPEC, particularly the green corridor projects.