Gwadar, governance and CPEC

Do Pakistani leaders really need to heed President Xi Jinping's call for the Global Governance Initiative (GGI)? What does this initiative mean for a country like Pakistan — reeling from natural disasters, widespread corruption and the persistent threat of terrorism?

A closer look reveals that the GGI should serve as more of an alarm bell for Pakistan's ruling class than for the leaders of most other nations.

Gwadar: A Microcosm of Governance Failure

Once hailed as the jewel in the crown of the China-Pakistan Economic Corridor (CPEC), Gwadar now presents a disheartening picture — a microcosm of crumbling governance, driven by populist impulses and an alarming absence of long-term vision.

The Gwadar Free Zone, intended to be a hub of industrial activity and international trade, has become a symbol of policy neglect and denial. Over 12 years since the CPEC agreement was signed in July 2013, only three of the 47 registered enterprises are reportedly operational — Agven Private Limited (fertiliser exports); Hangeng Agricultural Industrial Park (processing donkey meat for export); and Hengmei Lubricants Plant (lubricant production).

Meanwhile, six completed factories sit idle — non-functional due to bureaucratic inefficiencies, logistical failures or lack of support infrastructure.

The Roots of Resentment

Gwadar's problems are not confined to its industrial zone. Chronic power outages, water shortages, denial of justice, soaring unemployment and unchecked corruption by the elites have turned the city into a hotbed of public resentment. The old town with its cratered roads and stinking sewerage overflowing to roads streets and roads hardly resembles a shanty town.

Take, for instance, a recent report by the Public Accounts Committee of the Balochistan Assembly, which highlighted massive financial irregularities in the Public Health Engineering Department. In 2021, the National Accountability Bureau (NAB) revealed that over $4.46 million had been embezzled in just one desalination project.

Despite the city having a modern airport and a deep-sea port, both remain largely underutilised. Pakistani investors are understandably hesitant to commit resources to an area where governance is dysfunctional and security uncertain. The once-ambitious plans to make Gwadar a thriving industrial and export hub have lost their appeal, it seems.

Viewed against this backdrop, what does President Xi's GGI means — if at all for the rulers in Pakistan? The GGI forms part of a broader set of global initiatives aimed at reshaping international governance. These include: Global Development Initiative (GDI) – Sept 2021; Global Security Initiative (GSI) — April 2022; Global Civilization Initiative (GCI) — March 2023; and Global Artificial Intelligence Governance Initiative (GAIGI) — October 2023.

Collectively, these initiatives call for an overhaul of domestic and global governance systems to ensure stability, security, cooperation and shared prosperity. For nations like Pakistan, they offer not just inspiration, but an urgent wake-up call.

China itself has implemented sweeping reforms and development strategies in historically marginalised areas such as Tibet, Xinjiang and Ladakh. If China — an exemplar of disciplined governance — feels the need to initiate global governance reforms, what does that say about countries like Pakistan?

Isn't the GGI a subtle but firm critique of democratic authoritarianism and military-dominated governance in certain SCO member states?

A Case Study in Dysfunction

Pakistan's current governance landscape — both at the federal and provincial levels — desperately lacks rule-of-law-based systems. The constant self-promotion and symbolic relief efforts by provincial leaders, especially in Punjab, reflect a shallow, TikTok-era governance style. Picture food bags, tents and toilets branded with a chief minister's face — evocative of tin-pot dictators like Idi Amin, rather than responsible statecraft.

Even more concerning is the economic stagnation that has accompanied the CPEC investment. Despite $32 billion being invested across 45 projects since 2013 — including both loans and grants — Pakistan's GDP remains largely unimproved. Instead of creating sustainable growth, this influx has only deepened Pakistan's debt burden.

Add to this the nearly $4 billion in new loans acquired for post-2022 flood reconstruction, and it becomes clear that economic mismanagement is endemic.

As one economist pointed out in a WhatsApp group: "In the social sector, the multiplier effect is 1:13 — one dollar should generate thirteen dollars of economic activity. So where did the money go? Why didn't basic economic principles work in Pakistan's case?"

Messages from Tianjin and Beijing

The message out of Tianjin, where some of Xi's key messages were articulated, is straightforward: sovereignty, resilience and economic self-sufficiency require strong, rules-based governance at home, complemented by respect-based multilateral cooperation abroad. This is the path China has taken, and one that other SCO members would do well to follow.

As for Beijing, here's a telling interpretation of President Xi's conversation with PM Shehbaz Sharif, as shared by a Chinese friend:

"The world is changing. The unipolar bully can't rule for long — especially not in our neighborhood. China will support Pakistan economically and militarily, but you must address your internal weaknesses. We won't back you in a proxy war. The healthier you become, the more you can benefit from us."

A Final Question

So, does the GGI matter for Pakistan's civil and military leadership? Can it guide a long-term strategy rather than fuel another round of short-term political tactics?

The answer, perhaps, lies in whether our leaders are willing to accept that true sovereignty begins with good governance at home — not in foreign alliances or borrowed projects, but in building systems that serve people, not personalities.