ISLAMABAD, Apr 17 (ABC): Under PSDP the federal government has spent Rs 5.36 billion so far on 22 development projects in Gwadar 2025-26, part of a broader plan to expand infrastructure and economic capacity in the coastal city. The update provides a snapshot of how PSDP funds are being allocated and used in one of Pakistan’s key strategic regions.According to official documents available with Wealth Pakistan, the federal government had allocated Rs 16.79 billion for these projects for the Fiscal Year 2025-26.
What is the PSDP and what do these projects include?
The Public Sector Development Programme (PSDP) is the federal government’s main funding mechanism for large-scale development projects. For the fiscal year 2025-26, Rs 16.79 billion was allocated to 22 projects in Gwadar, with a combined total cost of Rs 184.2 billion.
These PSDP projects cover multiple sectors, including transport infrastructure, aviation, water resources, education, maritime development, and urban planning. PSDP at different stages of completion, reflecting a long-term development strategy rather than a single-year initiative.
Which are the major ongoing projects?
The largest and most advanced projects include:
- New Gwadar International Airport: The most expensive project PSDP, with a total approved cost of Rs 54.98 billion. By June 2025, Rs 42.72 billion had been spent. For 2025-26, Rs 4 billion was allocated, with Rs 2.34 billion utilized by March 2026.
- Gwadar-Ratodero Road (M-8): A key highway project linking Gwadar to inland Pakistan. It has cost Rs 32.89 billion so far, with Rs 592 million utilized during the current fiscal year.
- Shehzanik Dam: A water infrastructure project costing Rs 2.23 billion, aimed at improving water availability in Gwadar district.
These projects are intended to improve connectivity, logistics, and basic services in the region.
How are smaller and sectoral projects progressing?
Several smaller initiatives are also underway:
- Land acquisition for a rail link from Gwadar to Jacobabad via Besima has received limited funding so far, with Rs 3 million utilized.
- The Gwadar Development Authority’s business plan, valued at Rs 25 billion, has seen Rs 75 million utilized out of its allocation.
- Scholarship programmes for Gwadar students and the Gwadar Blue Economy Centre are also being funded, though at relatively modest levels.
These projects focus on human development, planning, and emerging sectors such as marine resources.
Are any projects near completion?
Some projects have recorded high or full utilization of allocated funds:
- The Gwadar Safe City Project has fully utilized Rs 1.02 billion out of the released funds.
- A major water supply and treatment project has also fully utilized its released amount of Rs 142 million.
- Land acquisition under the Gwadar Master Plan and a shipyard-related project have shown significant progress, though not yet complete.
This indicates that while some initiatives are advancing quickly, others are still in earlier stages.
Why does this matter?
Gwadar is considered a strategic location for trade and logistics due to its position on the Arabian Sea. Federal investment through PSDP is aimed at transforming the city into an economic hub by improving infrastructure, connectivity, and public services.
The pace of spending and project execution is closely watched as an indicator of progress on these long-term development goals.
What happens next?
The remaining funds allocated for 2025-26 are expected to be released and utilized over the coming months. Many of the projects have significant “throw-forward” costs, meaning they will continue into future fiscal years.
Monitoring implementation timelines, fund utilization, and project completion will be key to assessing the overall impact of these investments on Gwadar’s development.
