Gawadar is one of the three seaports of Pakistan. It is located on the southwestern coast of Baluchistan. Originally it came under the Omani Sultanate however due to negotiations by the Prime Minister of Pakistan Feroze Noon with the Sultan of Oman; Pakistan purchased Gawadar for 5.5 billion rupees in 1958.
Gawadar is considered as the crown jewel of CPEC (China Pak Economic Corridor) and holds immense importance to both China and Pakistan due to its location.
In this article, we’ll talk about how Gawadar is going to change the economic image of Pakistan.
The most important aspect of Gawadar is it’s strategic location. It is located at the mouth of the Persian Gulf and provides an easy route for resources to flow from China and other Central Asian countries to the Middle East.
Moreover, Gawadar can also facilitate trade to other Asian markets particularly Thailand and Malaysia.
Gawadar oversaw major developments during the Musharraf era. The National Highway Authority of Pakistan began the construction of Makran Coastal Highway which is a 655-kilometer long road linking Gawadar to Karachi and other major highways.
Furthermore, in 2007, the civil aviation authority of Pakistan began constructing a new airport in Gawadar the estimated cost of the project was around two hundred and fifty dollars.
China Pak Economic Corridor or commonly referred to as CPEC is a bilateral agreement between Pakistan and China to establish an economic corridor to promote trade, create jobs and instill peace and harmony within the region.
CPEC is thought of as a series of major infrastructure and development projects to upgrade and improve Pakistan’s economic image and situation.
CPEC tends to focus on developing the transportation network of Pakistan by creating a network of highways and motorways to reduce the inefficiencies created by the system already in place. Moreover, the plan also revolves around various power projects and the creation of various special economic zones to generate value and create numerous job opportunities for both Pakistanis and Chines alike.
Gawadar is the focal point of CPEC; it is a major part of China’s vision One Belt, One Road project. Up till now around one billion dollars worth of infrastructure projects have been commissioned and many more are in the pipeline.
There are plans to create and upgrade Gwadar’s port and create a special economic zone. Approximately two-thirds of China’s oil comes from the Middle East and it has to travel around South-East Asia and go to Shanghai. Gawadar will halve that distance and reduce other costs associated with the transportation, storage, and security of its goods.
China also intends to develop Gawadar into an export processing zone; for companies to start manufacturing their products and export. To pursue this objective China has decided to build a twenty billion tax-exempt industrial zone which includes its 300-megawatt power plant.
Moreover, China has also granted 230 million dollars to Pakistan for the construction of an international airport. The cost is borne by the Government of China and Pakistan is not obligated to pay anything towards it.
Keeping in mind the industrial and infrastructure developments being made in Gawadar. The Government of Pakistan has decided to establish an institution to enhance learning and provide training. The Pak-China Technical and Vocational Training Institute aims to develop and enhance the skills of the residents of Gawadar and provide them with the necessary training to operate and work in Gawadar.
According to the latest news, Saudi oil giants Aramco plans to invest approximately 26 billion dollars into Gawadar and convert it into a major oil city by spending heavily on infrastructure and operating refineries and distilleries.
Around one-third of the projects under CPEC have reached their conclusion and there are many more to come. There have been already significant improvements and we can only hope for more.
Gawadar is expected to generate generous returns on investments once it is fully operational. It also has developed into a real estate hub where investors global and local are taking a keen interest in Gawadars projects.
All in all, Gawadar has immensely improved Pakistan’s economic image and has drastically improved Pakistan’s credit rating and various factors which instill investor confidence and provoke investors to invest more into this hub.
Rumors are that Gawadar might even become the next Dubai owing to its exponential growth trajectory. For now, let’s just pray things to work out for the better.
However, till Gawadar is getting developed and till it gets some high rises and resindential apartments and homes, you can get your hands on some of the most luxurious residencies in Lahore! Who to trust when it comes to real estate? Trust only Aetmaad kyun keh aetmaad zaroori hai!