President Zardari announces Chinese takeover of Gwadar port

Published
0

A view of the Gwadar port. — Photo by AFP

ISLAMABAD: China took control of Pakistan's Gwadar port on Monday as part of its drive to secure energy and maritime routes that also gives it a potential Arabian Sea naval base, sparking Indian concern.

“The contract of operation of Gwadar port is formally given to China. Today, the agreement is transferred from the Port of Singapore Authority to China Overseas Ports Holding Company Limited,” President Asif Ali Zardari announced.

“The award of this contract opens new opportunities for our people... It gives new impetus to Pakistan-China relations,” added Zardari in a speech broadcast live on television.

On January 30 the Pakistani cabinet approved the transfer of Gwadar, currently a commercial failure cut off from the national road network, from PSA International to the state-owned China company.

The Pakistanis pitched the deal as offering an energy and trade corridor that would connect China to the Arabian Sea and Strait of Hormuz, a gateway for a third of the world's traded oil, overland through an expanded Karakoram Highway.

Experts say it would cut thousands of kilometres off the distance which oil and gas imports from Africa and the Middle East have to travel to reach China.

China paid about 75 per cent of the initial $250 million used to build the port but in 2007 PSA International won a 40-year operating lease. Then-ruler Pervez Musharraf was reportedly unwilling to upset Washington by giving control of the port to the Chinese.

On February 6 Indian Defence Minister AK Antony said New Delhi was concerned by Pakistan's decision to transfer management of the deep-sea port to China, which has interests in a string of other ports encircling India.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A voice in care
10 Oct, 2026

A voice in care

WORLD Mental Health Day this year carries a compelling message. The theme, ‘Lived experiences heard: real voices,...
Midterm break
Updated 10 Oct, 2026

Midterm break

Both the US and Israel need to halt their destructive misadventures in the Middle East.
American barbarism
Updated 10 Oct, 2026

American barbarism

WITH the spectre of defeat in the upcoming midterm elections looming large over the Trump administration, the...
Beneath the surface
Updated 09 Oct, 2026

Beneath the surface

The recent round made fewer headlines because the hard bargaining over the budget had already been done.
Moscow disagreement
Updated 09 Oct, 2026

Moscow disagreement

Both the Taliban’s denialism, and Russia’s apparently soft stance towards the Afghan terrorism problem, are unfortunate.
Vanished girls
09 Oct, 2026

Vanished girls

THE scourge of female disappearances in Pakistan should be a matter of shame. Institutional reforms and ...