Balochistan denied due share in Gwadar Port revenue

Letter states two operating entities at port are contributing 9% of their revenue to GPA, while a third entity provides 15%

By News Report
May 05, 2025
A Pakistani naval personnel stand guard near a ship at the Gwadar port. — AFP/File
A Pakistani naval personnel stand guard near a ship at the Gwadar port. — AFP/File

GWADAR: The Gwadar Port Authority (GPA) has formally informed the Government of Balochistan that the province does not receive any share from the revenue generated at Gwadar Port, despite the strategic and economic significance of the port to the region.

According to a letter sent by the GPA and presented in the Balochistan Assembly, the operational control of Gwadar Port lies with the China Overseas Ports Holding Company.

The letter states that two operating entities at the port are contributing 9 percent of their revenue to the GPA, while a third entity provides 15 percent. However, none of these funds are allocated to the Balochistan government.

The letter also mentioned that the Gwadar Port Authority is implementing various initiatives in the region under its Corporate Social Responsibility (CSR) commitments.

The contents of the letter were shared in the Balochistan Assembly, sparking renewed concern over provincial rights and revenue sharing. Chief Minister of Balochistan Mir Sarfraz Bugti has assured that the matter will be taken up with the federal government.

The revelation has added to the ongoing debate around resource control, provincial autonomy, and the distribution of economic benefits from key infrastructure projects in Balochistan.

The revelation comes at a time when the federal government has already announced major reforms to overhaul the maritime sector.

In January, Prime Minister Shehbaz Sharif approved a comprehensive revamping plan aimed at boosting maritime revenue from Rs2,610 billion to Rs8,000–9,000 billion.

The plan included over 120 action items, such as the creation of a Pakistan Maritime and Sea Port Authority (PMSPA) and the appointment of new CEOs for Karachi Port, Port Qasim, and Gwadar Port.

The reform strategy focused on improved governance of ports, revenue optimisation, digitisation, and development of the shipbuilding, ship breaking, fisheries, and aquaculture sectors. A high-level implementation committee had been established to oversee the execution of these measures.