Comment by Riaz Haq on October 4, 2025 at 10:13am

Pakistan courts US with pitch for new Arabian Sea port ( at Pasni for critical minerals export)

https://www.ft.com/content/9f7c7bf2-76ed-4eb6-bb9a-f628d05b0068

Late last month, Pakistan shipped a modest first consignment of fewer than two tonnes of critical and rare earth minerals to USSM that included copper, antimony and neodymium. The price of antimony has soared since Beijing imposed a ban on selling it to the US late last year.

Advisers to Pakistan’s military strongman Asim Munir have approached US officials with an offer to build and run a port on the Arabian Sea that could give Washington a foothold in one of the world’s most sensitive regions. The audacious plan, seen by the Financial Times, envisages American investors developing the seaside fishing town of Pasni as a terminal for access to Pakistan’s critical minerals. Pasni is just 100 miles from Iran and 70 miles from the Pakistani city of Gwadar, which has a China-backed port. The initiative, which is not official policy, reflects how Pakistani officials are exploring ways to capitalise on the sweeping geopolitical upheaval in South Asia of recent months.

The offer has been floated with some US officials, and was shared with Munir ahead of a meeting with Donald Trump in the White House late last month, according to two civilian advisers to the army chief who both asked not to be named. But a senior Trump administration official said the US president and his advisers had not discussed such a proposal.

The scheme is one of several ideas floated publicly and privately by Pakistani officials to maintain momentum with the Trump administration. They include engagement with a Trump-backed crypto venture, deepening co-operation against Afghanistan-based militant group Isis-K, endorsement of his Gaza peace plan and access to critical minerals.

Munir and Trump have forged what US and Pakistani diplomats are referring to as “a bromance” since the American president claimed credit in May for a ceasefire that ended the worst fighting between Pakistan and India in decades.

After two decades of warming ties with India, the US has over the summer publicly sparred with New Delhi. While India has rejected Trump’s claims of involvement in the ceasefire, Munir and Prime Minister Shehbaz Sharif have publicly thanked him and nominated him for the Nobel Peace Prize.

In return, Trump has lavished praise on Pakistan’s army chief. After their latest meeting last month, the White House released pictures of Munir and Sharif presenting the US leader with a display case of mineral samples.

“The whole narrative [of the US-Pakistan] relationship changed after the war,” said one of the advisers, who has been involved in back-channel contacts with the Trump circle for more than a year.

“It was very bad before then. We had not tended the relationship as we should have,” the adviser said. “In the last two decades the Indians occupied the space in the vacuum.”

The proposed port at Pasni would be linked to a new railway to transport minerals from Pakistan’s interior, the advisers said, in particular copper and antimony, a vital ingredient in batteries, fire-retardant and missiles.

A blueprint anticipated the port would cost up to $1.2bn with a proposed financing model that would be a mix of Pakistani federal and US-backed development finance. Advocates of the plan see it as a way of hedging the country’s position on the global stage as it seeks to balance a constellation of diplomatic ties with China, the US, Iran and Saudi Arabia, with which Islamabad signed a security pact last month.

“Pasni’s proximity to Iran and Central Asia enhances US options for trade and security . . . Engagement at Pasni would counterbalance Gwadar . . . and expand US influence in the Arabian Sea and Central Asia,” according to the blueprint.

“China’s Gwadar investments under the Belt and Road Initiative raise dual-use concerns,” it added, in an apparent allusion to US concerns Gwadar could serve as a Chinese naval base, a suggestion denied by Islamabad and Beijing.

Comment by Riaz Haq on November 4, 2025 at 5:29pm

Pakistan government approves new Gwadar shipyard project - Maritime Gateway

https://www.maritimegateway.com/pakistan-government-approves-new-gw...

Under the directives of Prime Minister Shehbaz Sharif, the government has approved the “New Gwadar Shipyard Mega Project” and activated the Project Management Cell (PMC). It aims at utilising all available resources for laying down fresh foundation of all-inclusive development of Gwadar Port under CPEC phase II. Having allocated Rs 200 million for the formation of PMC, relevant appointments will be sought to run entire affairs as per prescribed SOPs. The ‘New Modern Shipyard’ in Gwadar will incentivize commercial shipbuilding and repair industry, create new jobs and spur economic growth, according to Gwadar Port Authority.

Since land disagreement issue is all set to be resolved relevant TORs, tenders will be floated seeking international companies to participate. GPA had demarcated 750 acres of land for the new shipyard project. Apart from offering essential dry-docking facilities to the cargo ships visiting Gwadar Port, the Gwadar Shipyard would also offer services for building new ships.

The project expected to be started this year, and employment opportunities will be provided to experts and workers from Balochistan on the project on priority. Gwadar Shipyard Mega Project would be equipped with the latest technology, and this international standard project could give Pakistan a prominent place among the world-class shipyards.

Comment by Riaz Haq 4 hours ago

Karachi leverages Iran war, wins a year's worth of transshipment in 24 days
Pakistan's discount on port charges also helps draw transshipment from global lines

https://asia.nikkei.com/spotlight/iran-tensions/karachi-leverages-i...

Pakistan's Karachi port is witnessing a sharp rise in transshipment cargo due to disruption in the Strait of Hormuz, which has prompted carriers to reroute, while Islamabad's discounts on port charges are also helping global shipping lines call at the port on the Arabian Sea.

"At Karachi Port, around 8,300 containers were handled [for transshipment] in the entire year of 2025, while in just the past 24 days, cargo equivalent to 8,313 containers has been handled," Muhammad Junaid Anwar Chaudhry, federal minister for maritime affairs, told Nikkei Asia in a written statement on Friday.

Shipping lines began offloading cargo in Karachi because services to Dubai, Salalah and other Gulf ports have been disrupted by the Hormuz crisis. Iran has effectively closed down the waterway since March 2, after attacks by the U.S. and Israel.


Experts said the primary driver of the surge in cargo is the conflict in the Middle East, which has rendered traditional Gulf hubs like Dubai's Jebel Ali port non-operational.

"As a result, carriers have been forced to reroute traffic through alternative ports, and Karachi has benefited from its proximity," Naafey Sardar, assistant professor of economics at U.S.-based St. Olaf College, told Nikkei. "The increase in traffic will translate into higher revenue through port charges and other fees."

The sudden surge in cargo handling was also backed by existing foreign marine companies.

Ali Asad, who runs a trade consultancy business in Karachi, said global port operators such as Hong Kong-based Hutchison Ports and global shipping lines such as Maersk and COSCO maintain established operations in Pakistan. "These commercial linkages were already in place. As soon as this crisis struck, they were able to make use of existing mechanisms and effectively divert shipments to Pakistan instead of needing to start from scratch," he told Nikkei.

Asad added that there was existing space at Pakistan's port terminals to accommodate more transshipments. "The closure of its border with Afghanistan has practically paused transit trade in Pakistan," he said, explaining why such space is now available.

Another factor attracting transshipment demand has been the government's decision to offer 60% discounts on port charges, effective from March 18.

"A fiscal package slashing port dues by up to 60% [provided] an irresistible cost incentive for shipping lines to reroute through Karachi," Aqdas Afzal, an economist who has advised Gulf Cooperation Council governments on finance, told Nikkei.

To maintain this momentum of high cargo volume in the long term, experts argue that Pakistan needs supportive policy decisions.

"The shift can only become permanent if such recent financial incentives are embedded into a stable, long-term policy framework, maintaining cost competitiveness," Afzal said.

Asad, the trade consultant, said the most significant long-term benefit from the transshipment surge is the improvement of Pakistan's image as a potential major trade hub. "It demonstrates Pakistan's ability to handle international cargo reliably, helping position it as a viable alternative to established Gulf hubs."

Saleem Lalani, a senior finance professional who has worked in the Gulf, however, expressed skepticism on any large increase in long-term cargo handling at Karachi port.

"Ports are part of a multimodal logistics infrastructure that includes container berths, warehousing and integration with train and trucking transportation," he said.

"Any increase in terminal or seaport capacity requires significant investment in expanding capacity across the logistics and shipping value chain," he added, hinting that Islamabad's budgetary constraints would hinder such investment from materializing effectively.

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