China urges quicker resolution on Gwadar and ML-1 delays

China has voiced strong concerns over Pakistan’s delays in transferring 97 acres of Gwadar Port land and securing funds for the Main Line-1 (ML-1) railway project. 

The stalled land transfer, a decade after Gwadar Port’s handover to China, and unresolved ML-1 funding have emerged as key sticking points amid Pakistan’s economic constraints.

The News reported that, as the Chinese prime minister prepared to visit Pakistan, the Ministry of Maritime Affairs was directed to expedite land clearance for the China Overseas Ports Holding Company (COPHC). 

While most of the 2,281 acres allocated to COPHC have been transferred, 97 acres remain under the Pakistan Navy and Coast Guard due to security concerns. Officials cited project complexity as a factor in the delay, rather than negligence, noting recent strides in regional trade capacity, infrastructure improvements, and tax exemptions to boost Gwadar’s business ecosystem.

China has also requested a joint security mechanism to safeguard its workers, with both countries considering an integrated intelligence-sharing setup. Pakistan’s Ministry of Interior is actively collaborating with Chinese authorities to formulate a comprehensive security solution.

Additionally, Pakistan is eager to initiate ML-1’s first phase with Chinese funding. While ECNEC recently approved a revised cost, China has confirmed it will fund only the Karachi-to-Hyderabad segment initially. 

Due to IMF constraints on Pakistan’s rupee financing, Beijing has expressed reservations about further funding until the Karachi-Hyderabad stretch is complete.