Citing 1958 Agreement
ISLAMABAD: The federal government is seriously considering declaring Gwadar as a federal territory, drawing on provisions linked to the 1958 purchase agreement with the Sultanate of Oman. Senior officials confirmed internal deliberations are underway to streamline administration and accelerate development on the Makran coast.
The move, if approved, would shift Gwadar’s administrative control directly under the federal government, bypassing provincial structures in Balochistan. Officials cite the need for faster decision-making on strategic projects including the Gwadar Port Free Zone, new international airport, and cantonment facilities.
Sources familiar with the discussions said the proposal references the original 1958 transfer terms under which Pakistan acquired Gwadar from Oman for approximately $3 million. The territory, spanning over 2,400 square miles, was formally handed over on December 8, 1958.
**Development Momentum** Work on multiple projects has intensified along the Makran coast. The Gwadar Port Free Zone, spread across nearly 2,000 acres leased to Chinese operators for 43 years, continues to expand with new industrial units.
Construction of the New Gwadar International Airport, funded by a Chinese grant of around $230 million, has reached advanced stages. The facility is designed to handle large aircraft and support increased regional connectivity.
The Gwadar East Bay Expressway, estimated at $140-168 million, will link the port directly to the Makran Coastal Highway. Phase II of the project has received formal approval.
Power infrastructure upgrades are also progressing. Officials report steady advancement in electricity transmission lines and related energy projects aimed at supporting industrial activity in the free zone.
Military presence in the area has expanded with new cantonment facilities. This aligns with broader security measures for critical infrastructure along the strategic coastline.
**Official Position** A senior government official, speaking on condition of anonymity, stated that federal territory status would enable more efficient oversight of CPEC-related projects in Gwadar. “The focus remains on unlocking economic potential while ensuring security,” the official said.
The Ministry of Planning and Development has not issued an official statement yet, but sources indicate consultations are ongoing with relevant stakeholders including the Ministry of Interior and defence authorities.
**Historical Background** Gwadar remained under Omani control for nearly two centuries before the 1958 purchase. The agreement ended Omani administration and integrated the enclave into Pakistan. Successive governments have viewed the area as vital for maritime trade and regional connectivity.
In recent years, Gwadar has gained prominence under the China-Pakistan Economic Corridor. Chinese commitments in the area exceed $1 billion across port, road, energy, and airport projects.
**Key Figures** – Port development and free zone: Over 2,000 acres under long-term lease. – East Bay Expressway: $140-168 million investment. – New International Airport: $230 million Chinese grant. – Historical purchase price: Approximately $3 million (1958). – Projected future port capacity: Up to 300-400 million tons annually upon full completion.
Cargo throughput at Gwadar remains modest compared to national ports but shows gradual increase with new infrastructure.
**Reactions and Implications** Local business communities in Gwadar have welcomed accelerated development but seek greater inclusion in economic opportunities. Balochistan provincial authorities are expected to present their position once formal proposals emerge.
Regional observers note that enhanced federal control could strengthen security arrangements along the Makran coast, which holds strategic importance near key maritime routes.
Market analysts suggest that formal federal territory status may attract additional investment by simplifying regulatory processes for the free zone and associated industries.
**Strategic Outlook** The consideration comes amid ongoing efforts to position Gwadar as a major trade hub connecting Central Asia, the Middle East, and beyond. Full implementation of related projects could significantly boost regional trade volumes and generate employment.
Questions remain about the precise legal mechanism for any status change and its impact on provincial-federal relations. Any decision would likely require parliamentary review and broad consultation.
Further updates are expected in coming weeks as internal assessments continue. The government has indicated that development work on key infrastructure will proceed regardless of the administrative outcome.