Revised on December 07, 2017 at 11:00 AM
The Gwadar port is located on the southwestern coast of Pakistan in Baluchistan province. It is a 600km long coastal belt with beaches and bays. Gwadar's deep sea port potential was noted in 1952 and it was purchased from Oman in 1958, after 200 years of Omani rule. Gwadar is located near to the Persian and Arabian Gulf and Strait of Hormuz. President Pervez Musharraf realized a plan for the construction and development of Gwadar and the project began in 2002 after the agreement for construction with China. It was inaugurated in 2007 at the total cost of $248million.
In 2015, it was announced that the Gwadar City and port would be further developed under CPEC 1.62 billion. CPEC Will link northern Pakistan and Western China to the deep-sea port. Gwadar Port is strategically important, connecting three main continents; Asia, Africa, and Europe, so it got the status of key strategic and commercial port. About 60% of global trade and transportation of oil tankers passes through neighboring waters of Hormuz. Gwadar deep-sea port has the potential to remain operative throughout the year and the new development of 14.5-meter draft will be able to accommodate “the fifth generation" ships, like mother vessels and Panamax.
China- Pakistan Economic Corridor (CPEC) is a bilateral project between Pakistan and China to trade and integrate the countries of the region. Indeed, CPEC is the important regional component of "One Belt One Road" initiative by China. CPEC was launched on April 20, 2015, when Chinese president and Xi Jinping and Pakistani Prime Minister Nawaz Sharif signed 51 agreements and Memorandums of $46 Billion. China will also benefit from the economic corridor which will greatly reduce from 12000 km via sea to 2000 km via land i.e. from Kashgar to Gwadar. CPEC is 3,218 km lengthy route that will be completed in the first phase of this mega project, embodied by highways, railways, and pipelines. CPEC is a multi-dimensional project that is rebalancing options from geopolitics to geo-economics. It includes four major pillars; the infrastructure, workforce development, energy requirements and economic progress. Under CPEC China is interested to invest 34 billion in thermal, Solar and wind power generation.
CPEC in Pakistan will help to overcome the problems of Baluchistan. The mineral and oil resources of the province would be explored and the development of Gwadar port, Gwadar international Air Port and Special Economic Zones will enhance the strategic and economic location of Baluchistan and Pakistan. Many Countries showed interest in CPEC like Egyptian Ambassador to Pakistan Showed interest in CPEC. As well Afghanistan, Russia, and Iran also showed interest in CPEC cooperation. CPEC would exceed the foreign investment in Pakistan since 1970 and would be equivalent to 17 percent of 2015 and will produce 700,000 jobs from 2015 to 2030. According to a blueprint published in 2014, Pakistan's Ministry of Planning and development aims to advance from a lower-middle-income nation to an upper-middle-income nation. To achieve this goal Pakistan hopes to attract a high amount of foreign investments.
Currently, China is working on roadway projects in which Karakoram Highway, Eastern Alignment, Western Alignment and central alignment are included. Railway line projects are also under development, which includes Mainline 1, Mainline 2, and Mainline 3 and Khunjrab railway. As well energy projects, agriculture, science and technology and finance sectors are at high priority. With the successful cmpletion of China-Pakistan Economic Corridor will incrase the importance of Karachi and Gwadar port and plays a vital role as a geostrategic location and significance importance.
The geostrategic location of Pakistan is very important. CPEC will bring economic development, infrastructure development, increase employment and prosperity in both countries.