Pakistan's New Infrastructure Investments and Trade Routes

[Riaz Haq]

Pakistan has recently launched 5G wireless service in multiple cities and closed financing on the 306 kilometer 6-lane Sukkur-Hyderabad M6 motorway. In addition, Pakistan is seeing significant increase in the utilization of its Gwadar and Karachi ports after the closure of the Strait of Hormuz due to the US-Iran war. This will help open the trade routes from Pakistan to Central Asia via Iran, bypassing unstable Afghanistan. It has the potential to eventually make Pakistan a major transshipment hub for the region extending to the land-locked Central Asian Republics. Another major news is the Asian Development Bank financing of cross-border connectivity of the power grid and digital networks. These developments are expected to substantially enhance economic activity in the country, in spite of the short-term negative impact of the energy crisis, particularly in oil and gas imports. 

5G Launch:

Wireless carriers Jazz and Zong have launched 5G services across Pakistan in March 2026.  This will further expand and enhance Pakistan's digital public infrastructure. Jazz launched its 5G service across major cities, including in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, Quetta, Multan, and Faisalabad. Meanwhile, Jazz's competitor Zong is targeting over 16 cities with 5G speeds exceeding 1.4Gbps. 

During the March auction, a total of 480 MHz of spectrum was sold across multiple bands for over $500 million, with Pakistan's main telcos, Jazz, Ufone, and Zong, snapping up the assets. Pakistan Telecommunication Authority (PTA) put a total of 597 MHz of spectrum on the table, with just over 100 MHz of this going unsold.

M6 Motorway:

Pakistan has signed an agreement with the Asian Development Bank (ADB) for $235 million in financing for two sections (120 miles) of the M6 motorway in Sindh province. The Islamic Development Bank (IDB) and the OPEC Fund have already agreed to finance three other sections of this motorway. 

The M-6 motorway is the only missing segment in the north-south motorway route linking Karachi to Peshawar. The 306-kilometer-long, six-lane motorway will have 15 interchanges and 10 service areas.

Cross-Border Grid Connectivity:

Pakistan is joining the Pan-Asia Power Grid Initiative sponsored and financed by the Asian Development Bank which will provide $50 billion for power and $20 billion for digital infrastructure. The project will link grids, boost power trading, improve broadband and develop AI-ready communities across Asia, the Pacific. 

Iran Trade Routes:

Pakistan has opened six land transit routes for goods destined for Iran, creating a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz.

This development signals a major shift away from the Gulf trade infrastructure Iran had long relied upon, particularly through Jebel Ali Port in the United Arab Emirates. This represents an opportunity for Pakistan to create new trade routes to Central Asian Republics bypassing Afghanistan, eventually making Pakistani ports a major transshipment hub for the entire region. 

Pakistan's newest Gwadar Port has already seen a major surge in activity, handling around 11,000 containers in April 2026 alone, surpassing its entire 2025 volume. The increase comes as shipping companies adjust routes due to disruptions near the Strait of Hormuz, pushing traffic toward safer alternatives.

Space Program:

Pakistan's space agency SUPARCO has achieved a major milestone by launching five indigenous satellites over the last 16 months (early 2025 – April 2026), marking a shift toward rapid space technology expansion. The fleet, aimed at Earth observation and agriculture, includes EO-1, EO-2, AI-powered EO-3, and Pakistan's first hyperspectral satellite, HS-1. 

HS-1 is Pakistan's first hyper-spectral  satellite which is equipped with advanced hyperspectral imaging sensors capable of capturing data across hundreds of narrow spectral bands.  The satellite lifted off from China’s Jiuquan Satellite Launch Center on a Kinetica-1 rocket. It is expected to boost Pakistan's national capacities in areas such as precision agriculture, environmental monitoring, urban planning, and disaster management. Its high-resolution data will support improved resource management and strengthen Pakistan’s resilience to climate-related challenges. 

Related Links:

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[Riaz Haq]

The Daily CPEC
@TheDailyCPEC
🚨BREAKING: Gwadar receives multiple cargo ships carrying Chinese industrial goods, boosting its role as a regional hub.

https://x.com/TheDailyCPEC/status/2051556256020931036?s=20

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As of early May 2026, Chinese ships, including the M.V. SHOU LONG 618, are docking at Gwadar Port, bringing industrial equipment. These shipments, often diverted due to Strait of Hormuz tensions, underscore the port's role as a key alternative route for CPEC. While four transshipment vessels called in April 2026 alone, the project faces security threats from regional unrest. [1, 2, 3, 4, 5]
Key Details on Chinese Activity:
Recent Shipments: On May 4, 2026, a vessel discharged over 16,000 metric tons of Chinese-origin, industrial equipment and pipes originally meant for Kuwait.
Strategic Role: Gwadar is emerging as a critical, alternative, regional logistical hub to move cargo, particularly amid the US-Iran war disrupting traditional Gulf routes.
Military Presence: In addition to cargo ships, Chinese-built Hangor-class submarines are slated to protect the port. Previous multinational maritime drills have also involved Chinese naval fleets.
Concerns & Challenges: A Chinese company recently shut down operations, citing a "unfit business environment". [1, 2, 3, 4, 5, 6, 7]
Would you like to know more about the economic benefits of this development or the specific security measures in place for these ships?

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Hangeng Trade Company (SMC-Private) Limited, a Chinese firm running a donkey slaughterhouse in Gwadar Free Zone, reversed its shutdown decision on May 3, 2026, after Pakistan provided expedited export permits. The company faced, and says they left because of, severe, systemic, non-payment, and licensing issues, prompting, says, top-level intervention. [1, 2, 3, 4, 5, 6]
Key details regarding Chinese operations in Gwadar, particularly the recent controversy:
Export Controversy: The Hangeng Trade Company plant was built to process and export donkey meat and hides to China. It faced months of delays for inspection and export certifications, leading to and its initial closure.
Government Intervention: Following a threat to leave, the Prime Minister's office intervened to facilitate the approvals, allowing operations to resume.
Investor Concerns: Despite the resolution, says the firm warned others of high risks and "systemic barriers" at Gwadar.
Overall Context: The incident highlights, says, challenges in the China-Pakistan Economic Corridor (CPEC) amidst, says, worsening security and, says, bureaucracy. [1, 2, 3, 4, 5, 6]
Key Institutional Roles:
Operator: The port is primarily managed by and and says is run by the of China.
Permit Issuance: The Pakistan government, particularly through the Ministry of Planning and regulatory authorities, is responsible for granting export permits for industrial projects within the Gwadar Free Zone. [1, 2, 3, 4, 5, 6]