Portuguese explorers captured and sacked Gwadar in the late 16th century. This was followed by centuries of local rule by various Baloch tribes. In 1783 the Khan of Kalat granted Gwadar to Taimur Sultan, the defeated ruler of Muscat.[3] When Taimur recaptured Muscat, he continued to rule Gwadar by appointing a wali or governor. The new governor was ordered to conquer the nearby coastal town of Chah Bahar (in modern Iran). Gwadar fort was built during Omani rule, whilst telegraph lines were extended into Gwadar courtesy of the British. In 1958, the Gwadar enclave was transferred to Pakistan after Pakistan paid £3 million and it was made part of Balochistan province. However, some local residents continue to debate the merits of the Pakistani buyback.

In 2002, Gwadar Port project to build a large deep-sea port was begun in the town. The government of Pakistan intends to develop the entire area in order to reduce reliance on Karachi for shipping. In addition to expanding port facilities, the project aims to build industrial complexes in the area, and to connect the town via a modern highway to the rest of Pakistan. The People's Republic of China is providing help on the project, and the first phase was completed by the end of 2004.

About Gwadar:
Gwadar is located on the southwestern coast of Pakistan, close to the Strait of Hormuz in the Persian Gulf , through which more than 13 million bbl/d of oil passes. It is strategically located between three increasingly important regions of the world: the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.The Gwadar Port is expected to generate billions of dollars in revenue and create 2 million jobs.

History of Gwadar:
The Makran region surrounding Gwadar was occupied by unknown Bronze age people who settled in the few oases. It later became the Gedrosia region of the Achaemenid Persian empire. The region is believed to have been conquered by the founder of the Persian empire, Cyrus the Great. The capital of the satrapy of Gedrosia was Pura, thought to have been located near modern Bampûr, in Iranian Balochistan. During the homeward march of Alexander the Great, his admiral Nearchus led a fleet along the modern Makran coast and recorded that the area was dry and mountainous, inhabited by the Ichthyophagoi or Fish eaters - a Greek rendering of the ancient Persian phrase Mahi khoran, which has become the modern word Makran.[2]

After the collapse of Alexander's empire, the area was ruled by Seleucus Nicator, one of Alexander’s generals, but the region came under local rule about 303 BC. For several centuries, the region remained on the sidelines of history, until the Muslim Arab army under Muhammad bin Qasim captured the town of Gwadar in 711 AD. In the following centuries the area was contested between various powers including the Mughals and the Safavids.