ISLAMABAD – Gwadar is a port city on the southwestern coast of Pakistan’slargest province, Baluchistan. The Gwadar port is expected to revolutionizethe economic, socio-economic, financial and strategic landscape of Pakistanin its entirety. After the completion of the port, Middle East, CentralAsia and South Asia are all expected to be connected economically. Oncedeveloped, this port is going to serve as a financial hub for the entireregion, beginning a new era of prosperity in Pakistan.
Gwadar’s strategic location has already attracted investors’ attention withChina taking the lead in the development of the entire port project viaCPEC induced investments. In 2013, the port was handed over to the ChinaOverseas Ports Holding Company. China has taken the initiative to developthe port as part of the China Pakistan Economic Corridor (CPEC) which ispart of the China’s One Belt, One Road global infrastructure project.
The geostrategic location of Gwadar offers a unique status to Pakistan asit also provides access to the Central Asian region. Moreover, geographicalproximity of Gwadar port has a special significance when it comes to theGCC countries. Gwadar’s close distance with Muscat port (almost 385 km)only validates its strategic importance further as it offers an alternativetrade route to the world. A number of GCC states have shown interest whenit comes to the development of the Gwadar district. Recently, a major waterfiltration plant was inaugurated in Gwadar with the help of GCC stateswhich show that the latter is not only interested in ensuring that theregion develops but also recognizes its emerging strategic significance.
“The expected extension of CPEC has a potential to revive Afghanistan andPakistan’s fragile economics, and can ultimately prove to be an effectiveweapon against forces that benefit from the economic underdevelopment ofthis region”
As the government in Pakistan has said a number of times that opportunitiesbeing created under the CPEC are not only going to benefit Pakistan. Theentire region can benefit from this success story. CPEC promises to begin anew era of prosperity not only for Pakistan but for the entire region.South Asia, Pakistan and Afghanistan, are one of the least economicallyconnected countries in this region. With the successful implementation ofCPEC, this may change soon: China is interested in expanding CPEC furtherto Central Asia through Afghanistan. This expected extension of the CPEChas the potential to revive Afghanistan and Pakistan’s fragile economicswhich can ultimately prove an effective weapon to fight against forces thatbenefit from the economic underdevelopment of this region.
While some regional states have opposed the project, Pakistan with the helpof China – a key stakeholder in this financial scheme – is willing toovercome all challenges to ensure that CPEC becomes operational. With thedevelopment of the Gwadar, majority of Beijing’s imports are expected topass through Pakistan which has a potential to lift Pakistan’s strugglingeconomy. It’s important to note that China is one of the largest oilimporters in the world and Pakistan offers a ‘short’ and strategicallyimportant location for Beijing to route its imports through Pakistan. Qatarhas also invested over $1billion in the natural gas sector. Pakistan’sclose friend, Saudi Arabia, has also expressed an interest toward thedevelopment of Gwadar. Iran has already shown an interest to join the Chinalead economic block. If Iran joins the CPEC, Pakistan’s economy can benefitfurther, for the former can help Pakistan in overcoming its energy and gasshortages to a great extent given the country’s massive oil reserves whichlargely remain untapped. A number of other states, including China aresetting up oil refineries in Gwadar which in the new future would reducePakistan’s energy shortages further. With the potential to handle shipsover 50,000 tons in terms of weight, Gwadar port is also expected togenerate business activity worth $50 billion annually at its peak.
Overall, Gwadar represents an excellent economic opportunity for Pakistan,China and other interested stakeholders.
By: Hasnnain Javed. *Master Trainer/ Advisor (Pakistan IndustrialTechnical Assistance Center, Lahore operated under Federal Ministry ofIndustries and Production, Islamabad)*