Gwadar is a port city on the southwestern coast of Baluchistan Pakistan. The city is located on the shores of the Arabian Sea approximately 700 kilometers to the west of Pakistan’s largest city Karachi. Gwadar is near the border with Iran and is located to the east of the Persian Gulf and opposite Oman.
One belt one road is a development strategy started by the Chinese government in 2013. It refers to the New Silk Road Economic Belt, which will link China with Europe through Central and Western Asia, and the 21st Century Maritime Silk Road, which will connect China with Southeast Asian countries, Africa and Europe. Under china one belt one road trade policy known as CPEC in Pakistan it is the prime target of Chinese GOVT to enhance export and production capacity of northwestern Chinese provinces.
Xinjiang is the largest province in china and it exchanges its border with eight countries. Chinese government allocates 450 $ billion dollars funds for this province alone in next five years development plan
As dispute arises in South China Sea which is life line of Chinese export to the world china desperately required a second route in Indian Ocean to counter American influence in the region. Some 60% of the world’s oil is transported through the Strait of Hormuz Gulf of Oman and Persian Gulf. China is heavily dependent on Persian Gulf oil which passes through the Strait of Malacca all the way through the Indian and Pacific Oceans. Once the oil reaches China’s east coast ports, it is transported thousands of miles inland to western China. The Gwadar port Karakoram Highway (KKH) route is safer, cheaper and shorter than transporting the oil by ocean tanker. Chinese goods flowing in the opposite direction will find an easier, shorter and secure route to the Middle East.
Gwadar has become a fundamental tool to fulfill the one belt one road (CPEC) dream. To keeping alive this dream china planned to invest 45 $ billion dollar in electricity and infrastructure Connective by road, railway and sea.
China trade volume with GCC (gulf cooperation council) is around 220 $ billion dollar. Having this perspective in mind one can easily imagine how it shift the paradigm of trade by using this route. Pakistan could collect billions from transit and levies fee.
CPEC definitely gives boost to Chinese export and lower the production cost as per oil and gas pipeline start working most of the oil and gas goes to the Xinjiang the future financial hub northwestern china and the Goods exported to the central Asian and European countries. Exports for Middle East and African countries will used Gwadar port at first stage with the passage of time Chinese firms will establish industries in Gwadar. So far so now limited auto, small ship making companies shown interest in Gwadar but time is not far away when mega companies will invest in Gwadar.
The Government of Pakistan is doing excellent job on its part to link the Gwadar port to the rest of the country and establishing basic necessities of life. So far few project like hospital, stadium has been functional, an international Air Port proposes to the master plan.
The second part of this blog would be based on investment opportunities for Pakistani people.