Gwadar is the port city that serves as the entry point for the immensely lucrative trade routes that are the China Pakistan Economic Corridor (CPEC) and One Belt One Road (OBOR) initiative. Located in the Balochistan province of Pakistan, Gwadar wore a deserted look for many years with no signs of development and almost no role in Pakistan’s economy. Today, it is being touted as a game changer that will give an enormous boost to the Pakistani economy for decades to come.
Here are 10 reasons why Gwadar is the future of a stronger Pakistan.
1. New jobs and business for Pakistanis
The redevelopment of Gwadar is a mega project involving funding of billions of dollars from China as a part of CPEC. This venture will not only involve building of port facilities but also all sorts of residential and commercial infrastructure, thus creating hundreds of thousands of employment opportunities for locals.
2. Big boost to the real estate sector
Until recently Balochistan was considerably less developed than the other provinces of Pakistan. With the development of infrastructure in Gwadar there will be a boom in the real estate sector of Balochistan, benefiting thousands of Pakistani and foreign investors.
3. Strategic location will benefit all those involved
Gwadar is located on the coast of the Arabian Sea at the opening of the Strait of Hormuz, one of the world’s busiest oil shipping lanes accounting for 20% of the global petroleum trade. The port’s significant position thus makes it incredibly valuable for both Pakistan and especially China as the latter lacks a port that far west.
4. Tourism in Pakistan will be stimulated
Pakistan is a country endowed with natural beauty and lots of historical monuments. Once Gwadar is developed, it will provide easy opportunities to tourists from other countries to visit these scenic spots across the country. It will strengthen the tourism sector and thus augment the GDP of Pakistan.
5. Increase in total trade output of Pakistan
Gwadar’s deep seaport will create additional capacity for the import and export of goods. Pakistan will be able to significantly increase its trade with many central Asian countries using the roads and infrastructure that is being developed as part of CPEC. At present the country of around 190 million people only has one seaport in Karachi. Gwadar will facilitate a much higher volume of trade with many new countries.
6. It will help people in getting higher wages
The port is already providing employment to thousands of Pakistanis. Daily wage rates for labourers in Gwadar are much higher than in other parts of Pakistan. This will help in improving the lifestyles of countless Pakistanis as they enjoy higher disposable incomes, spending money on other goods and services to strengthen the overall economy of the country.
7. Gwadar will attract investors from around the world
Prices of residential and commercial properties in Gwadar have already appreciated remarkably in a short period of time. There is a still lot of potential for getting a high rate of return on investment for foreign investors. These investors are coming in large numbers and buying properties in Gwadar. This massive investment from global investors will pump in huge amounts of funds into the Pakistani economy and strengthen it further.
8. Local economy of Balochistan will get a major boost
The redevelopment of Gwadar is such a massive project that it requires a lot of land from local landowners in Balochistan. These landowners will be compensated at a very high rate for their land. This money, once it is invested in different economic activities, will strengthen the economy of the province of Balochistan in a big way.
9. Business in all parts of Pakistan will benefit
Gwadar will be well connected with not just the Chinese province of Xinjiang but all other parts of Pakistan. This will provide excellent opportunities for businessmen in other provinces of Pakistan to export their products to other countries of the world. This increased export will contribute to the overall GDP of Pakistan. Small businesses will be able to grow and expand at a brisk pace with the excellent trade opportunities available through Gwadar port.
10. Gwadar will give impetus to further industrialization
Pakistan is still primarily depends on agriculture for the major part of its exports. Industrial activities in Gwadar will lead to further industrialization of the whole country, significantly strengthening the economy of Pakistan.