by Nilesh Kunwar

Hollow Promises

Beijing and Islamabad proudly refer to modernisation of Gwadar port in Balochistan as the “crown jewel” of the ambitious $ 62 billion China Pakistan Economic Corridor (CPEC) project that would bring about a quantum improvement in the quality of life of locals. However, instead of this happening, living conditions of Gwadar residents have paradoxically gone from bad to worse due to CPEC project activities and Chinese presence.

Gwadar is a sad story of brazen opportunism and ruthless exploitation by China compounded by Islamabad’s abject apathy that has forced its beleaguered residents to rise up in protest. However, rather than address their genuine grievances, the administration has come down on peaceful protesters with a heavy hand. With the Pakistan army being in overall control, ongoing public protests in Gwadar have conveniently been dubbed anti-national activities sponsored by foreign agencies to justify use of excessive force leading to a cycle of unending violence.

Gwadar Port Operations

In 2007, Singapore port operator PSA International won the contract to operate Gwadar port for 40 years. Surprisingly, Pakistan’s “all weather friend” and “iron brother” Beijing didn’t participate in the bidding process. Even though this contract gave PSA several substantial concessions such as exemption from corporate tax, duty exemption on equipment and machinery for port development, it withdrew from this $750 agreement just five years later, and this time China willingly accepted the Gwadar port operating contract.

Two reasons were cited for PSA’s withdrawal from the Gwadar port operating contract-one, “security situation” in Balochistan, and two, “denial of land at Gwadar Port.” Being a global leader in port operations, PSA would definitely have carried out comprehensive risk analysis of the security threats before it decided to bid for the Gwadar port operating contract. Since there was no change in the security situation in Balochistan at the time PSA entered into the contract and when it decided to exit, this reason for its hurried departure isn’t very convincing.

However, denial of land being an insurmountable impediment to the planned development of Gwadar port is certainly a plausible reason for PSA to have opted out. But what was the land allotment problem? Surprisingly, this was due to the Pakistan Navy’s refusal to hand over 584 acres of land at Shamba Ismail in its possession for development of Gwadar port. This high-handed action prompted the then Ports and Shipping Minister Babar Khan Ghauri to remark that the armed forces of Pakistan should not behave like “real estate companies.”

Land allotment for development of Gwadar port was also hampered by a stay order issued by Pakistan’s Supreme Court against allotment of land to a foreign company. However, many analysts opine that despite the Supreme Court’s injunction, an alternative arrangement could have been explored in overall national interests and wellbeing of Gwadar residents. Moreover, the Supreme Court had only issued a stay order and not a judgment against land transfer. So it appears that this reason was more of an excuse to divert attention from the Navy’s obdurate and self-serving stance.

Lopsided Development

Climatic disaster prone Gwadar is woefully lacking in basic amenities including proper drainage systems and clean water supply. Unfortunately, while executing development projects in Gwadar, Chinese planners have not only neglected to upgrade basic facilities but have also taken some shortcuts that have worsened the living conditions of locals. Due to indiscriminate infrastructure development activity, several passageways that facilitated natural drainage of rain water have been blocked causing frequent flooding as is being experienced in the Mulla Bundh area of Gwadar. Similarly, construction of the six-lane East Bay Driveway has reportedly blocked 4.3 Km of the coastline, limiting access of local fishing boats to the sea besides leading to water accumulation.

Many CPEC watchers however believe that not addressing the pressing requirement of providing basic amenities in Gwadar by the local authorities is intentional and aimed at indirectly putting pressure on those locals who had refused to vacate their traditional homes and lands for accommodating CPEC projects and security needs, to now do so.

The Sell-Out

The biggest worry concerning CPEC is the inexplicable lack of transparency that Islamabad has maintained on the terms and conditions of this project. This has rightly raised suspicions that this is because the agreements are heavily tilted in China’s favour, and there is credible evidence that buttresses this apprehension.

Some Examples:

• In 2016, Islamabad permanently waived-off the international competitive bidding condition for Chinese deals and awarded construction contract for Eastbay Expressway to link Gwadar port with coastal highway to one of three Chinese bidders.

• On November 25, 2017, the then Pakistani Federal Minister for Ports and Shipping Mir Hasil Bizenjo informed the Senate that for the next 40 years, a whopping 91 percent of the revenues being generated from Gwadar port as part of CPEC would go to China while the Gwadar Port Authority of Pakistan would get only 9 percent.

• June 2021 saw large protests by locals against grant of fishing licences to Chinese trawlers by Pakistani authorities as being capable of large scale deep sea fishing, these sophisticated modern crafts leave little for local fishermen using small fishing boats. Since 65 percent of Gwadar’s population are fishermen, Chinese entry into their traditional fishing areas has rightly angered the locals.

• To placate local fishermen, the Pakistan Maritime Security Agency (PMSA) detained five Chinese trawlers laden with fish from Gwadar in July 2021. However, thanks to Islamabad’s preferential treatment towards anything Chinese, fishing by Chinese trawlers off Gwadar continues unabated and has become one of the key rallying points for Gwadar’s extremely popular “Haq Do Tehreek” (Give Gwadar its rights movement).

• While ensuring security of Chinese nationals and CPEC assets is essential, the Pakistan army has definitely gone overboard by turning Gwadar into a virtual fortress and forcing locals to undergo the agony and humiliation of navigating through multiple check-posts on a daily basis. Even their houses are subjected to frequent security checks at ungodly hours.


Though Islamabad may deny it, but seeing how things are emerging and the way Beijing is calling the shots and having operational control over its port for 40 years, it’s abundantly clear that Gwadar has de facto become a part of China.

Former US Vice President Nelson Rockefeller had once opined that “The secret to success is to own nothing, but control everything,” and isn’t this exactly what China has done?

So, congratulations to Beijing on its Gwadar success story!

Nilesh Kunwar is a retired Indian Army Officer who has served in Jammu & Kashmir, Assam, Nagaland and Manipur. He is a keen ‘Kashmir-Watcher,’ and after retirement is pursuing his favourite hobby of writing for newspapers, journals and think-tanks