Capitalizing on Conflict: Reimagining the Ports of Pakistan Amid Gulf War

Nadia Hassan
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Nadia Hassan: Pakistan Institute of Development Economics, Islamabad

No 2026:58, PIDE Policy View Point from Pakistan Institute of Development Economics

Abstract: With 20% of global trade under consistent risk through Hormuz, Pakistan is already receiving diverted cargo but lacks policy readiness to retain it. Turning geography into destiny needs timely alignment of reforms to make the ports competitive. Pakistan is strategically located at the intersection of Middle East, South Asia, and Central Asia. Recent disruption in supply chains following regional conflict has created a strategic window for Pakistan to realign its ports located outside but in closest proximity of the conflict zone as alternate to major transshipment hubs of Gulf. This is a rare opportunity for transforming the short-term gains into long-term revenue generation and sustained growth of the economy. Pakistan has a favorable strategic position and cost-effective port labor. It has great potential to transform its ports into transcontinental trade hubs. In this context, a critical evaluation of Jebel Ali port, Dubai and Salalah port, Oman is performed to identify key gaps in policy structure for ports. This brief highlight that despite of strategic position and cost effectiveness Pakistan lacks a broad policy approach that must focus cost rationalization, infrastructure development, automation, integration of free zones, skill development, connectivity and security enhancement. Ultimately, it is identified that Pakistan can convert the temporary, conflict-driven shift into durable gains only by means of coherent policy measures aligned with global best practices.

Keywords: Pakistan ports strategy; Strait of Hormuz trade risk; Karachi Port transshipment; Port Qasim cargo growth; Gwadar port potential; CPEC maritime logistics; Jebel Ali comparison; Salalah port benchmark; global supply chain disruption; port policy reforms Pakistan (search for similar items in EconPapers)
Pages: 7 pages
Date: 2026
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