ISLAMABAD: Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, chaired a meeting in Islamabad on Tuesday to review the progress on the development of Gwadar Port and the Free Zone.
The meeting was attended by senior officials from various ministries and government departments.
Officials provided an update on Gwadar’s connectivity, informing the Minister that the city currently has partial access through the N-10 Coastal Highway and N-85, which links Gwadar to Quetta.
However, the completion of the M-8 motorway and other critical roads remains delayed due to funding constraints.
Minister Iqbal directed that the allocated funds for the M-8 be released in two installments this year and emphasized the need to fast-track China-Pakistan Economic Corridor (CPEC) infrastructure projects to improve connectivity to and from Gwadar.
The Minister also instructed relevant departments to resolve land disputes related to the Gwadar Free Zone in accordance with the agreements made with the China Overseas Port Holding Company (COPHC).
On the issue of Gwadar’s tax exemption policy, officials explained that businesses operating in the Free Zone, including COPHC, are entitled to tax holidays and incentives under the Finance Act. However, these companies still face turnover taxes and import duties.
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Minister Iqbal clarified that no turnover tax is applicable in Gwadar and urged the removal of any ambiguities in the tax exemption framework to make the region more attractive to investors.
The Minister also reviewed ongoing infrastructure projects aimed at improving basic services in Gwadar, such as power, water, and sewage systems.
He directed the Quetta Electric Supply Company (QESCO) to complete the pending transmission lines within three months to improve Gwadar’s power supply and instructed QESCO to submit weekly progress reports to the CPEC Secretariat on the electricity situation in the city.
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Minister Iqbal further reviewed the progress of the Gwadar Smart Port City Master Plan and the Gwadar Port Master Plan. He noted that while the master plan was initially developed with Chinese assistance in 2005-06 and formally approved in 2019, it is now progressing at a rapid pace.
The Minister emphasized the need to initiate more public-private partnership (PPP) projects to enhance Gwadar’s attractiveness as an investment hub. He suggested offering additional incentives to encourage private companies to explore investment opportunities in the region.
In his concluding remarks, Minister Iqbal highlighted the recent completion of Gwadar Airport and underscored the importance of stimulating local economic activity, particularly in tourism.
He called for the development of a comprehensive roadmap to implement the Gwadar Master Plan over the next three years, ensuring a sustainable and balanced growth model for the city’s development.