Pakistan: Gwadar Port And Regional Connectivity – OpEd
Gwadar Port has become the strategic centre of the China-Pakistan Economic Corridor (CPEC). Developed as a small fishing village in Balochistan, it currently finds itself in the centre of a colossal change, which connects Pakistan to some of the most important trade routes in the world. Being close to Strait of Hormuz that oil flows around which the majority of the world passes by, Gwadar offers Pakistan a front-row seat in the regional trade and also offers China with a much shorter and safer path to its oil and goods.
Its deep-sea port also gives it the option of large cargo ships that cannot dock at Karachi which offers a new advantage to the shipping in Pakistan. Having been developed as a result of the port and the establishment of logistics infrastructure, Pakistan is now at the intersection of the world trade routes between China, Central Asia, and the Arabian Peninsula. This has changed Pakistan to be more strategic and leverage in regional diplomacy and trade negotiations.
International investors are also coming in because of the establishment of the Gwadar Free Zone. Chinese, Gulf and other businesses are establishing their presence, with Gwadar being the new Dubai in terms of trade. Gwadar is gradually establishing itself as a gateway to universal trade with better systems, increased security and growing industrial base that may re-organize the flows of trade throughout the Indian Ocean.
It is perhaps the closest effect of the development in Gwadar that can be experienced in Balochistan itself. The province is a poorly developed neglected area that is experiencing a new economic age. The port has provided thousands of direct and indirect employment opportunities to surrounding communities, both construction and logistics, hospitality and small business enterprises. Roads, power plants, housing and telecommunications are also bringing Balochistan the connectivity that it has always been missing in infrastructure projects.
More to the point, people living in the area are starting to experience noticeable improvements. The transformation of Gwadar is gradually improving the divide between centre and the periphery with increased access to education, health and clean water. The expansion of the local businesses in the port and free zone implies that not only the foreign investors or large corporations are experiencing prosperity, but it starts to cascade down to the households and small businesses.
Gwadar Port is a masterstroke in the case of China. It reduces the distance of the energy imports in the Middle East and also enables the oil and merchandise to be transported to western China over the overland CPEC network rather than the much longer path over the Strait of Malacca. This not only saves time but also billions of dollars annually besides a decrease in geopolitical risks. To Pakistan, this will be in the form of transit revenue, job creation and increased economic reliance with the second largest economy in the world.
Such a win-win relationship enhances the economic and strategic relationship between China and Pakistan that has come to be a pillar of CPEC. Gwadar will stabilize the regional economies as the trade routes diversify, leading to cooperation rather than competition.
The Gwadar International Airport is a modern airport that is being constructed and it is a significant advancement in the connection of Pakistan. When it becomes operational, it will directly connect Gwadar to the major cities in Asia and the Middle East with the effect of increasing the trade and the tourism. It will also simplify the operations of the investors and international partners in the region and will not have to depend on remote hubs such as Karachi and Doha.
Meanwhile, desalination plants are under development in order to solve one of the most significant problems of Gwadar, i.e., the lack of fresh water. These plants are also a security of clean water to the local population and industries, which is the basic need, creates a local confidence and support of social stability. The agenda is quite simple; development in Gwadar is not about money, it is about people.
The establishment of industrial belt in Gwadar will further root the economic growth. It is anticipated that these areas will have manufacturing, logistics, and energy-related industries and will provide thousands of jobs and increase the export capacity. As infrastructure and regulations get streamlined, Gwadar will be the attraction of local and foreign investors.
As well, Gwadar offers another shipping gateway which relieves Karachi Port, ensuring that the overall trade system in Pakistan is more effective. It also connects the republics of Central Asia, such as Uzbekistan and Kazakhstan, with the Gulf that can provide them an easy access to the sea. The connectivity of the region enhances the diplomatic power of Pakistan and generates integration within the Asian region.
Other than trade and industry, the scenic coastline, blue waters and modern infrastructure of Gwadar are clearing the path to a new tourism frontier. As resorts, roads and other areas are being built, Gwadar can become a big tourist destination as it draws tourists in the Gulf, China and other parts of the world. Tourism will diversify the local economy and also present to the world a softer image of Pakistan.
