No viable plan for Gwadar airport

Iqbal denounces delays, urges action to attract airlines, develop cargo facilities

ISLAMABAD:

Pakistan does not have a commercial plan for making the recently inaugurated New Gwadar International Airport operational, as the airport regulator revealed that the facility is not commercially viable until the Gwadar Port and Free Zone are fully developed.

The New Gwadar International Airport was built with a Chinese grant of $230 million as a major air traffic hub under the China-Pakistan Economic Corridor (CPEC).

Planning Minister Ahsan Iqbal strongly criticised the Pakistan Civil Aviation Authority (PCAA) and Pakistan Airports Authority (PAA) for delays in developing a comprehensive commercialisation plan, according to a statement issued by the planning ministry on Thursday.

The soft opening of the airport was conducted during the visit of the Chinese prime minister to Pakistan last month without first ensuring its commercial viability. Iqbal lambasted the regulators for their failure to develop a business plan despite his repeated instructions over the past two years.

PAA officials informed the minister that until the Gwadar Port and Gwadar Free Zone are fully developed, the airport cannot become commercially viable. The minister argued that the authorities should make Gwadar a tourist hub and position the Gwadar airport as a regional hub—objectives that remain unattainable in the current unstable security and political environment in Pakistan.

Iqbal stressed that if airlines are not attracted within six months of the inauguration, the airport's chances of success will diminish significantly, according to the planning ministry. The government's vision is to establish the airport as a central point for long-haul flights.

The planning minister proposed offering attractive rates for at least five years, highlighting technical landings as a key strategy, and suggested providing free landing services for a few months. However, the meeting was informed that even local airlines were unwilling to begin operations, with the exception of the financially strained Pakistan International Airlines (PIA).

The airport, featuring a 3,648-meter-long runway, was built through a $230 million Chinese grant. However, essential passenger facilities, such as food outlets, baggage wrapping, car parking, lounges, and transportation, remain underdeveloped.

Additional Director General PAA, Air Vice Marshal Zeeshan Saeed, briefed the meeting on safety evaluations and airfield regularisation, assuring operational clearance by December.

"The minister expressed disappointment over the two-year delay in commercialisation planning and directed the PCAA to expedite efforts to attract airlines, develop air cargo facilities, and establish international business partnerships," as per the planning ministry.

The meeting revealed that Pakistan undertook the construction of the airport without conducting a "market analysis," raising concerns that the New Gwadar International Airport could become another white elephant due to insufficient air traffic.

China has already expressed frustration over the slow pace of development at the Gwadar Port and Free Zone, with Islamabad failing to provide the required facilities, breaching prior commitments.

The planning minister highlighted Gwadar's potential to serve as a cost-effective alternative to Oman and Dubai for technical landings, instructing officials to position the airport accordingly. He also stressed the urgent need to establish air cargo facilities, directing the PCAA to engage global logistics companies such as DHL and FedEx to kickstart operations and prioritise cargo utilities.

Iqbal issued a three-week deadline to PAA officials to present a comprehensive commercialisation plan, complete with clear timelines and strategies for stakeholder engagement.

He reiterated the importance of immediate action to establish the New Gwadar International Airport as a strategic hub for regional and global connectivity, ensuring its role in Gwadar's economic development and Pakistan's broader growth ambitions.

The meeting also revealed that essential facilities like cold storage are still at the tendering stage. Approvals have been granted for allotments in the administration block to government departments, PIA, the Gwadar Housing Authority, and other stakeholders, but critical passenger services remain incomplete.