The Gwadar Port Authority (GPA) has signed a Letter of Intent (LoI) with China’s Xinning Enterprise, aiming to ramp up Gwadar port investment in Gwadar Port and its Free Zone, a key step in transforming the area into a major regional trade and economic hub.
Details of China Deal
The agreement, announced by the Ministry of Maritime Affairs on August 5, 2025, outlines several initiatives, including:
- Developing Gwadar as a regional transshipment center
- Launching new industrial projects
- Optimizing existing facilities in the Free Zone
- Relocating industries to Gwadar
The LoI was signed by Yi Jiang of Xinning Enterprise and Umer Zaffar Shaikh, Additional Secretary of Maritime Affairs. GPA Chairman Noorul Haq Baloch attended virtually, while Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry held discussions with the Chinese delegation.
Chaudhry described the partnership as a “significant milestone” for Gwadar’s development, praising Xinning’s potential to boost capacity, attract foreign investment, and contribute to Balochistan’s economic uplift.
Long Term Vision for Gwadar Port Investment
The deal also aligns with Pakistan’s long-term vision for Gwadar — positioning it as a global maritime gateway under the broader China-Pakistan Economic Corridor (CPEC). Both parties reaffirmed commitment to Pakistan’s legal framework, ensuring transparent investment procedures and mutual cooperation.
This agreement on Gwadar Port investment comes amid Pakistan’s push to commercialize Gwadar Port, which has underperformed since construction over a decade ago. Earlier in July, the ministry launched new plans to expand operations by introducing more shipping lines and a ferry service to connect with Gulf Cooperation Council (GCC) nations. Five companies have already submitted ferry route proposals.
China deal, if implemented successfully, these initiatives could make Gwadar a hub for regional trade, benefiting not just cargo routes but also expatriates and cross-border traders through direct maritime access.
Published in SouthAsianDesk, August 5th, 2025
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