Cabinet body meets to discuss utilisation of Gwadar Port for public sector imports

A federal cabinet committee discussed on Tuesday the roadmap to enhance utilisation of the Gwadar Port through public sector imports, a statement from the Ministry for Commerce read.

Federal Minister for Commerce Jam Kamal Khan chaired the committee meeting that was aimed at exploring the feasibility and strategies for routing 60% of public sector imports, including wheat, fertiliser, and sugar, through Gwadar Port, it added.

According to details, the meeting brought together key stakeholders, including the Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, and senior officials from the ministries of Commerce, Maritime Affairs, Interior, and Planning, to deliberate on the “strategic initiative”.

Body formed to ensure enhanced public sector import thru Gwadar port

The committee, established to propose actionable recommendations to PM Shehbaz Sharif, reviewed progress on existing plans and discussed the roadmap to enhance the utilisation of Gwadar Port.

It agreed to convene monthly and report quarterly to the cabinet, ensuring periodic review of progress in realising Gwadar’s potential as a key trade hub, the statement read.

“The committee emphasised utilising Gwadar Port for bulk imports such as wheat, sugar, and urea.”

According to the ministry, Jam Kamal Khan suggested a two-part approach regarding the matter:

1. Holistic vision: Presenting an overall strategy to integrate Gwadar into the national trade framework through measures aimed to provide enabling business environment.
2. Immediate Actions: Leveraging low-hanging fruits like public sector imports through the Trading Corporation of Pakistan (TCP).

“The potential for containerised vessel imports and exports via Gwadar was reviewed. The members stressed identifying private sector commodities and providing necessary incentives to encourage trade through Gwadar.

A proposal to establish a dedicated working group for private sector engagement was discussed,“ the ministry further said.

The viability of Gwadar Port for transshipment and transit to Afghanistan and Central Asian Republics (CARs) was also explored.

“The committee acknowledged the progress made in transshipment initiatives and noted China’s interest in leveraging Gwadar under the One Belt, One Road (OBOR) framework.”

PM directs routing 50pc of public cargo thru Gwadar port

During the meeting, it was noted that addressing the cost differential between Gwadar and Karachi would be essential to ensuring competitiveness, particularly in government-to-government (G2G) deals with countries like Bangladesh.

Financial support mechanisms for the adjustment were also discussed.

The committee sought feedback on pending responses from ministries and departments for improving business enabling environment for Gwadar port and encouraged further collaboration with logistics experts from the sectoral councils.

It also discussed measure to encourage bulk cargoes through Gwadar for enhancing port utilisation significantly.

A working paper highlighting enabling factors, such as road and rail linkages, insurance facilitation, and security arrangements, will be presented to the PM in next meeting, according to the ministry statement.