Gwadar Port: The Golden Goose of Pakistan

Gwadar port is a deep sea, warm water port of Pakistan which stays functional throughout the year unlike some other ports around the world. It is located in the North of Arabian Sea and at the mouth of Persian Gulf just outside the Straits of Hormuz. It is located somewhat 533 km from Karachi and approximately 120 km from Iranian border. It connects Pakistan to the Indian Ocean Region (IOR) and provides the opportunity to China, Russia and Central Asian Republics to access IOR via Pakistan. Gwadar has a huge potential of becoming one of the largest free trade zones and making Pakistan a regional trade hub. This port is perceived as a geopolitical threat by the Gulf countries and India. They have this paranoia that Gwadar port would become a competitor to their ports in the IOR and would grab a huge trading share. The Gwadar port is in the developmental phase. It’s functional but its full potential has yet to be exploited. Under CPEC, a flagship project of BRI, China is carrying out infrastructural development at Gwadar port and is also constructing a route from China to Gwadar. This infrastructural development will further enable this port to generate more revenues. 

 

“The country's southwest Gwadar port, restored, developed and fully-functioned under the China Pakistan Economic Corridor (CPEC), has given a strategic position to Pakistan in the region, enabling it to attract investors from across the world.” (PM Imran Khan)

 

Gwadar port holds immense potential for Pakistan. The port provides a sense of security because unlike the port of Karachi, Gwadar port is far away from Indian border. Therefore the security from Indian belligerency is guaranteed. Moreover, Pakistan’s dependence on Port of Karachi and Bin Qasim Port would be reduced. This port also provides Pakistan with a transshipment and trade opportunity. Under CPEC, Gwadar port would be made fully functional and will trigger the development of Balochistan as well. It will also open a new avenue for the revival of tourism in Balochistan. The concept of Special Economic Zones (SEZs) and Exclusive Economic Zones (EEZs) further welcomes socio-economic upheaval of Pakistan in general and Balochistan in particular. As per the agreement signed between Pakistan and China, Gwadar would be made a free trade zone and an industrial hub, where investors would be welcomed. Recently, the KSA, UAE and Qatar showed interest in investing in Gwadar in the form of oil refineries and other infrastructural development. All these factors will provide more employment and development. 

 

 

On the 2nd of July Pakistani Prime Minister Imran Khan stated, “The country's southwest Gwadar port, restored, developed and fully-functioned under the China Pakistan Economic Corridor (CPEC), has given a strategic position to Pakistan in the region, enabling it to attract investors from across the world.” While talking to local media channel he also said, “ It is the first time in Pakistan's history that a big number of investors are showing interest in seeking business opportunities in Pakistan because they know that they will be able to make money from the Gwadar port which has improved connectivity and shrunk distances.” The government of Pakistan has welcomed all the regional members to invest in Gwadar and to be a part of CPEC if they deem it profitable. 

 

With a pragmatic and a rational political negotiation and cooperation the socio-economic development owing to Gwadar can make Pakistan an Asian tiger, however, if managed poorly it may lead Pakistan towards a debt trap.

 

Strategically, the Gwadar port gives China an access to IOR. China’s presence onGwadar port and her outreachto IOR will ensure Pakistan’s security from any type of Indian bellicosity and it will also keep an eye on Indo-US hegemony in IOR. As Gwadar port appears to be a gateway to the warm waters of IOR for the region, so Pakistan can also give Russia, Kazakhstan, Kyrgyzstan, Afghanistan, Uzbekistan, Tajikistan and other interested countries a transit route to and from Gwadar; this will help Pakistan to earn billions of dollars from the transit fee only, let alone the other benefits. Hence, Gwadar port seems to be a golden goose for Pakistan, if treated pragmatically would strengthen Pakistan socially, economically and strategically.

 

It is quite obvious that numerous benefits can be reaped from Gwadar port and from the connectivity plan of CPEC. But this depends on how the terms and conditions are negotiated. With a pragmatic and a rational political negotiation and cooperation the socio-economic development owing to Gwadar can make Pakistan an Asian tiger, however, if managed poorly it may lead Pakistan towards a debt trap. Therefore, Pakistan needs to work cautiously to exploit the potential of Gwadar to its fullest and to make herself a regional trade hub in true letter and spirit.