ISLAMABAD: In response to the ongoing US-China trade conflict, Pakistan is actively positioning Gwadar as a strategic destination for the relocation of Chinese industries.
With the imposition of high tariffs on Chinese exports by the US since the Trump administration, Pakistan views this geopolitical shift as an opportunity to attract Chinese businesses seeking alternative operational bases.
To this end, the Cabinet Committee on Chinese Investment Projects (CCoCIP) has directed key ministries to fast-track the formulation of a comprehensive roadmap to facilitate this industrial migration.
The Board of Investment (BOI) and the Ministry of Industries & Production have been given five days to deliver a detailed strategy identifying incentives and potential sectors for Chinese relocation to Gwadar — the focal point of the China-Pakistan Economic Corridor (CPEC).
In a recent meeting, the CCoCIP reviewed the Ministry of Maritime Affairs’ compliance report on past decisions and issued several directives to accelerate development in Gwadar and other economic zones.
A notable decision was the immediate issuance of a Statutory Regulatory Order (SRO) by the Ministry of Commerce, allowing the export of Potassium Sulphate fertiliser through Gwadar Port.
Although previously approved by the ECC and the federal cabinet, the export permission had not been officially notified until now.
The committee also instructed the Ministry of Planning, Development and Special Initiatives to hold a high-level meeting involving multiple key departments — including Finance, Commerce, BOI, Industries & Production, and the State Bank of Pakistan — to discuss the pilot implementation of Foreign Currency Facilitation within the Gwadar Free Zone.
The Finance Division will provide a briefing note ahead of this session.
In another strategic move, the Ministry of Maritime Affairs has been tasked with initiating dialogue with Gwadar’s local fishing communities to enable international seafood transshipment through the port. The outcomes of these consultations are to be reported at the next committee meeting.
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For the Karachi Comprehensive Coastal Development Zone (KCCDZ), a new ministerial committee — comprising the ministers of Planning, BOI, and Maritime Affairs — will engage with the Sindh chief minister to resolve long-standing issues and move the project forward.
Addressing Gwadar’s energy needs, the committee instructed the Power Division to coordinate with Naval Authorities for temporary electricity supply to the Gwadar Desalination Plant via the Naval Grid, following a suspension of power imports from Iran.
Simultaneously, the division is to present a plan for connecting the plant to the National Grid through an extension from Panjgur.
The CCoCIP also reiterated the urgency of implementing a previously approved cabinet decision regarding electricity supply for the Rashakai Special Economic Zone (SEZ).
NEPRA has been told to accelerate its regulatory processes, and the Power Division is to submit an implementation report at the upcoming meeting.
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Finally, the BOI has been directed to ensure immediate implementation of all outstanding committee decisions and submit a comprehensive progress update at the next CCoCIP session, signaling a clear intent by the government to fast-track development and investment facilitation in key economic zones.
