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GAWADAR PORT

IMPORTANCE:
In the changing dynamics of global architecture, the sea politics is
getting complex with more focus on commercial activities and
economic prosperity. Gwadar port is the warm water and deep sea
port of Pakistan. It is situated at the mouth of Persian Gulf, Strait
of Hormuz and holds 2/3 world oil reserves.

The port holds great strategic and economic significance for


Pakistan. It is third important deep sea port of Pakistan after
karachi and Qasim Ports. Its is located at cross junction of
international sea shipping and oil trade routes. Gawadar can act
as an international trade hub for Pakistan. Gwadar port would
connet three regions, i.e. Central Asia, South Asia and Middle
Esat. It would open new job oppurtunities and help in
development of Baluchinstan. Pakistan would be able to explore
minerals, hydrocarbons, oil and gas resources for CARs. The port
will attract foreign investment and tourism. It would provide
foreign reserves and free trade zones and special economic
zones(SEZ) that would help in the economic prosperity of
Baluchistan and Pakistan. It would help to increase Pakistans
trade and comercial activities particularly in Baluchistan province,
so provincial grivenaces will be adressed.

Benefits of Gwadar projects are by no means likely to remain


restricted to China and Pakistan. The entire region is destined to
benefit from it. A trans-regional facility is propping up that will
drastically cut down distances between various destinations,
create new routes and provide port access to a number of
landlocked countries of Asia, through shortest land route. The
Gwadar Port is a warm-water, deep-sea port, it would remain
functional throughout the year.
Gwadar deep sea port is the second great monument of Pakistan-
China friendship. Port is strategically important to China because
it will enable China to move its trade goods more safely, reliably
and faster.

Keeping in view the significance of Gwadar port, the government


has declared Gwadar as a Duty Free Port and Free Economic
Zone. A separate allocation of one billion rupees was made in the
budget for the fiscal year 2004-2005 for the construction of the
export zone and Gwadar industrial city. This has greatly
accelerated the pace of development in the area. The other
incentives announced by Govt are summarized as under:
Positive approach towards private sector involvement.
Infrastructure development on BOT/BOO basis.
Tax holidays for ten years from date of commencement
of
commercial operations.
100% profit repatriation.
Ownership rights.
Flexible labour regulations.
Subsidy on utilities.
Complete exemption from duty & sales tax on imported
plants &
machinery for 10 years.
Capital gains will be exempted from tax for 5 years.

FUTURE DEVELOPMENT:
Gwadar will help Pakistan to monitor the Sea Lines of
Communications (SLOCs) originating from the Persian Gulf and
the Strait of Hormuz. Gwadar will able to control the oil sea routes
and trade links among regions such as South Asia, Africa, Central
Asia, Gulf and Middle East.

There are security concerns which need to be addressed.


Presently, India is using all tactics to counter the development of
Gwadar port.

It is a major transit destination in the Chinese concept of One Belt


One Road, and a vital node of Pakistan Economic Corridor (CPEC).
Seeing the relevance of the project, Iran, Afghanistan,
Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan have shown
their willingness to join the CPEC project. In February 2013, Iran
announced that it would set up a $4 billion oil refinery in Gwadar.
Gwadar has the potential to acquire the status of a centre piece
as a gateway to the Strait of Hormuz and improving the exiting
links to the Caspian Region, Long-term Planning Document of
CPEC aims at inducting any investor coming from any corner of
the World who wants to be a partner and use this gateway.

Incumbent CM Dr Abdul Malik Baloch decided on October 11,


2015 to engage the local people in major projects, including the
China-Pakistan Economic Corridor (CPEC), to remove their sense
of deprivation. The CM has directed to pay price of the land to
owners before starting work on projects, land acquisition has been
done at generous prices to benefit the local land owners, and
compensation paid is many times over the market price.
The CM also opined that the CPEC would boost economic activities
and create a large number of jobs in the region; and the people of
Gwadar should be the major beneficiary of the port and
associated projects. Balochistan is a very important province of
the country and Gwadar is the heart of Balochistan. Therefore, the
people of Gwadar are entitled to get all basic civic facilities, he
said. Since a major bulk of two-way flow of goods between
western China and Central Asia and Gwadar will use overland
trade route of Balochistan, the province shall have a regular
income of millions of dollars in transit fee.

A 50-bed hospital in Gwadar would be made functional soon.


Other people friendly projects include setting up of girls colleges,
water filtration plant for clean drinking water, making Gwadar city
clean and providing facilities for fish export and cross-border
trade. The federal government is in the process of setting up
facilities related to immigration, customs and trade in Gwadar,
Mand, Panjgur and Mashkel areas.

Development and operationalisation of port is poised to usher an


era of prosperity for the people of Gwadar in particular and the
entire Balochistan in general. Gwadar port is expected to
generate billions of dollars in revenues and create at least two
million jobs. According to the 18th Constitutional Amendment, the
7th National Finance Commission Award and Aaghaz-e-Haqooq-e-
Balochistan package, local populations shall be given priority for
these jobs, and major chunk of revenue would also go to the
provincial government.