A Jewel in the Crown
By Tanvir Ahmed Khan

GWADAR is a jewel in the crown of Pakistan’s economy. It is quiet amazing that yesterday’s small fishing village of Gwadar has rapidly emerged as an international Deep Sea Port city today. It is really important that the Government of Pakistan has declared Gwadar a Duty-Free Port and free economic zone keeping in view the significance of the region.

This has not only enhanced its commercial worth manifold but has also accelerated the pace of development to an incredible extent. By virtue of its finest location, development projects, recreational programmes and Government’s special attention will soon turn it into a city that can be comparable with the cities like Singapore, Hong Kong and Dubai.

Gwadar, the western port city of Pakistan or the western port, that is worth mentioning has already got the attention of economic planners. Gwadar has an immense strategic lure. It lies near the Straits of Hormuz, gateway to the Gulf through which 40% of the world’s oil passes. The port also has a great commercial attraction. It lies 1,250 miles from Xinjiang, a land-locked western province and latecomer to China’s economic boom.

Pakistan identified Gwadar as a port site in 1964. However, it was only in 2001 that significant steps were taken toward making this proposal a reality, when China agreed to participate in the construction and development of the Deep Sea Port. The development of Gwadar could bring economic gains in a backward Balochistan Province. The infrastructural development of the province could make it an attractive investment opportunity. Meanwhile, land prices around Gwadar are said to be shooting up.

Keeping in view its utmost importance, the Government of Pakistan has declared Gwadar as Duty-Free Port and a Free Economic Zone. Economic benefits of Gwadar Port besides the geo-strategic importance are: Capitalizing the opportunities for trade with land-locked Central Asian States and Afghanistan, promotion of trade and transport with Gulf States, Trans-shipment essentially of containerized cargo, Unlocking the development potential of hinterland, Diversion of influx of human resources from upcountry to Gwadar, socio-economic upliftment of the Province of Balochistan, Establishment of shipping-related industries, Oil storage, refinery and petro-chemicals, Export processing industrial zones and many many more avenues.

Gwadar could emerge as a key shipping point, bringing Pakistan a much-needed income, and when combined with the surrounding areas could become a trade hub, once road and rail links connect it to the rest of Pakistan, Afghanistan and Central Asia.

A road from Gwadar to Saindak, is said to be the shortest route between Central Asia and the sea, is under construction. Gwadar would provide land-locked Afghanistan and the Central Asian Republics with access to the sea. Goods, oil and gas reserves from these countries could be shipped to global markets through Gwadar Port.

Pakistan’s business community seems to be in favour of Gwadar Port being designated a free trade zone and an export-processing zone. These all mega projects in Balochistan especially in Gwadar worth billions of US dollars carry national and international dimensions. The completion of these projects will not only usher an era of prosperity in Balochistan it will also change the outlook of the region.

Gwadar is Pakistan’s largest infrastructural project since independence. After the completion of the first phase of Gwadar Port billion of dollars have been invested in Gwadar and in the next one or two years the investment can cross the figure of trillions.

Now, China is a major investor in Gwadar, who has spent 248 million dollars in first phase of Gwadar Port. The total cost of project may go up to 2.2 billion dollars. China also plans to invest US$12 billion in multiple projects in Pakistan, including the country’s largest oil refinery at Gwadar, the Oriental Morning Post reported.

The Gwadar oil refinery, which is being planned and designed, is expected to reach a daily oil output of 60,000 barrels when it goes into production, China is also planning to foster its participation in Pakistan’s long-term economic development by investing US$500 million in a joint venture investment company. Beijing is also investing billions after billions of dollars in western China a grand 5-year plan to develop it and Gwadar is a necessary part of that 5-year plan.

Pakistan invests more than an amount of 2 billion dollars to upgrade Gwadar and completion of related development programme in the last two years. Just Provincial Government of Balochistan is spending 4.5 billion rupees in Gwadar. Pakistan is an impoverished and underdeveloped country. Its economic record was not good in the past.

After coming into power President General Pervez Musharraf focused on economic sector. There is no doubt that in the last 3 years Pakistan’s economic growth is moving quickly towards record breaking achievement in the Pakistan’s history. Pakistan has attracted a sum of US$1.6 billion as foreign investment during the first 7 months of this fiscal year, starting last July. It is expected to attract US$1.4 billion more in the rest of the fiscal year.

Pakistan also hopes to achieve 18 billion dollar exports this year. These all signs are showing Government efforts to make Pakistan economically strong. And the Mega projects that Government has started in Balochistan including Gwadar Port, is going to generate an estimated US$ 60 billion every year over the span of time and provide firm basis for socio-economic uplift of the province.

As soon as the Gwadar Port goes operational, a rapid socio-economic uplift of Balochistan will be witnessed and would change the living standards of people dwelling in the backward areas of Balochistan.

The Government through Gwadar Port would end an era of depreciation for Baloch people and encourage them to work on the road of progress and prosperity to contribute in nation-building. Dreams of progress are materializing and clouds of desperation are shattering. Thus a better future of Balochistan is ahead in the form of fully developed Gwadar Port.●

© 2005 Ehtisham Iqbal