China has expressed serious concern over Pakistan’s delay 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 the handover of Gwadar port to China, and the unresolved financing of ML-1 have emerged as major points of contention amid Pakistan’s economic constraints.
As the Chinese Prime Minister prepares to visit Pakistan, the Ministry of Maritime Affairs has been directed to expedite the land clearance process of China Overseas Ports Holding Corporation (COPHC), The News reported.
While most of the 2,281 acres allocated to COPHC have been transferred, 97 acres remain under the control of the Pakistan Navy and Coast Guard due to security concerns. Officials cited the project’s complexity as a factor in the delay, not negligence, pointing to recent strides in regional trading capacity, improved infrastructure, and tax breaks to boost Gwadar’s business ecosystem.
China has also requested the establishment of a joint security mechanism to protect its workers, with both countries considering establishing an integrated intelligence-sharing system. The Pakistani Interior Ministry is actively cooperating with the Chinese authorities to formulate a comprehensive security solution.
In addition, Pakistan is keen to start the first phase of ML-1 with Chinese funding. While ECNEC recently approved the revised cost, China confirmed that it will finance only the Karachi to Hyderabad portion initially.
Due to IMF restrictions on financing the Pakistani rupee, Beijing has expressed reservations about further financing until the Karachi-Hyderabad line is completed.