Economic Survey 2025-26 highlights Gwadar’s growing importance as a regional trade, logistics and industrial hub outside the Strait of Hormuz.
ISLAMABAD: Gwadar Port is steadily strengthening its position as one of Pakistan’s most strategically important maritime gateways, with ongoing development under the China-Pakistan Economic Corridor (CPEC) aimed at boosting trade, logistics and regional connectivity, according to the Economic Survey of Pakistan 2025-26.
The survey states that Gwadar’s location on the Arabian Sea, just outside the Strait of Hormuz, gives Pakistan a significant strategic advantage by placing the port along one of the world’s busiest maritime trade routes.
Strategic location enhances regional connectivity
Situated in Balochistan at the entrance to the Persian Gulf, Gwadar Port lies around 630 kilometres from Karachi and approximately 120 kilometres from the Iranian border.
According to the Economic Survey, the port is well positioned to serve as a gateway linking Pakistan with regional and international markets while providing direct access to major global shipping lanes.
Its location is expected to strengthen Pakistan’s role in regional commerce by facilitating trade with the Middle East, Central Asia, China and other international markets.
Key pillar of Pakistan’s maritime economy
The survey notes that Gwadar Port complements the country’s existing seaports, including Karachi Port and Port Qasim, and is gradually emerging as a strategic component of Pakistan’s maritime infrastructure.
The government expects the port to play an increasingly important role in expanding regional connectivity, promoting international trade and attracting investment in logistics, shipping, manufacturing and port-related services.
The continued development of Gwadar is also viewed as a key element of Pakistan’s long-term strategy to diversify maritime trade and improve supply chain efficiency.
CPEC development gathers pace
According to the Economic Survey, work continued during FY2025-26 to improve the commercial viability and operational capacity of Gwadar Port under the CPEC framework.
A major milestone was achieved with the China Overseas Port Holding Company (COPHC) completing the master planning and feasibility studies for the 2,281-acre Main Free Zone.
The survey also states that construction has commenced on a number of industrial units within the Free Zone, reflecting steady progress towards establishing Gwadar as a major industrial, logistics and commercial centre.
Industrial growth expected to drive investment
The development of industrial infrastructure within the Free Zone is expected to support manufacturing, warehousing, logistics and export-oriented industries.
The government believes these projects will generate employment opportunities, improve trade facilitation and encourage both domestic and foreign investment in port-based economic activities.
By integrating industrial development with modern port infrastructure, Gwadar is expected to strengthen Pakistan’s competitiveness in regional and international trade.
Long-term economic significance
The Economic Survey of Pakistan 2025-26 concludes that the continued expansion of Gwadar Port under CPEC is enhancing Pakistan’s maritime capabilities and supporting broader economic development objectives.
With ongoing investment in port infrastructure, logistics facilities and the Free Zone, Gwadar is expected to play an increasingly important role in facilitating regional trade, improving transport connectivity and supporting Pakistan’s long-term economic growth strategy.