Rs14.2 Billion PSDP Allocation to Accelerate Gwadar’s Infrastructure Growth
The federal government has allocated more than Rs14.2 billion under the Public Sector Development Programme (PSDP) 2026-27 for Gwadar and its associated connectivity projects, reaffirming its commitment to transforming the port city into a major economic and logistics hub. The funding package focuses on improving transportation infrastructure, strengthening port connectivity, and expanding essential urban services that support Gwadar’s long-term growth.
A significant portion of the allocation has been dedicated to improving road infrastructure linking Gwadar with the rest of Pakistan. The largest share, Rs6.5 billion, has been earmarked for the Hoshab-Awaran-Khuzdar sections of the M-8 Corridor, a strategic highway expected to enhance regional connectivity and facilitate the efficient movement of goods and people.
The government has also allocated Rs2.55 billion for the New Gwadar International Airport, one of the city's flagship infrastructure projects that is expected to improve domestic and international air connectivity while supporting trade, tourism, and investment opportunities. In addition, Rs1 billion has been designated for the Gwadar-Ratodero Road Project, further strengthening transport links between Gwadar and Pakistan’s national road network.
To support future rail connectivity, the PSDP includes Rs400 million for land acquisition for the proposed railway line connecting Gwadar to Jacobabad via Besima. The project reflects the government's long-term strategy of integrating Gwadar into Pakistan's national railway system, providing a more efficient logistics corridor for cargo transportation and regional trade.
The development programme also prioritizes port-related infrastructure with allocations for land acquisition under the Gwadar Master Plan, the development of an Off-Dock Terminal, East Bay Expressway Phase-II, and the Project Management Cell for the proposed Gwadar Shipyard. These initiatives are expected to enhance port operations, improve cargo handling capacity, and strengthen Gwadar’s position as a regional maritime gateway.
Alongside transport and port infrastructure, the government has allocated funding for several civic development projects aimed at improving the quality of life for Gwadar’s residents. These include sanitation systems, landfill development, rehabilitation of Old Town Gwadar, implementation of the Gwadar Development Authority Business Plan, improvements in water supply and treatment facilities, and the Gwadar Safe City Project, which seeks to enhance public safety through modern surveillance and security infrastructure.
Additional allocations have also been made for the Shehzanik Dam, the Model Customs Collectorate Gwadar, the Oceanographic Research Sub-Station, and the University of Gwadar. Furthermore, scholarships for students from Gwadar have been included under the Higher Education Commission, reflecting the government's continued focus on education, research, and human capital development.
The comprehensive PSDP allocation demonstrates the federal government's sustained commitment to developing Gwadar as a modern economic, industrial, and maritime hub. By investing simultaneously in connectivity, public infrastructure, education, and civic services, the programme aims to create a stronger foundation for sustainable growth, increased investment, and long-term prosperity in the region.