PAKISTAN’s GWADAR AND THE OTHER COUNTRIES

ZEENAT BI BI EXAMINER’S NAME

112-FSS/BSHISH/S16 MS. KUSUM SABA

DEPARTMENT OF HISTORY & PAKISTAN STUDIES

FACULTY OF SOCIAL SCIENCES
INTERNATIONAL ISLAMIC UNIVERSITY
ISLAMABAD
2019

1
 Contents

Geographical Location Of Pakistan.............................................................................4

History Of Gwadar......................................................................................................5
Importance Of Gwadar................................................................................................5
China-Pakistan Economic Corridor.............................................................................9
Benefits Of CPEC For Pakistan...................................................................................9
CPEC & China............................................................................................................10
CPEC & Central Asian States.....................................................................................11
CPEC & Persian Gulf States.......................................................................................13
CPEC & Asian Interests..............................................................................................14
Conclusion...................................................................................................................14

2
3
4
Geographical Location Of Pakistan:

Stephen Cohn wrote about the importance of Pakistan’s location that “While history
has been kind to Pakistan, its geography has been it greatest benefit. Pakistan has resource rich
area in the North-west and its people are rich in North-west. Pakistan is a trade route for the
whole world. Pakistan due to its location, links East with the West. Pakistan is located in South
Asia. The area of Pakistan is almost 803,904 square kilometers. Pakistan has great significance
because of its geographical location. Pakistan is the gate way between South Asia & South
West Asia. Pakistan is an excellent way to go to every corner of the world. If we see the North
Western part of Pakistan, there is Afghanistan, which shares a long border with Pakistan. The
border of Afghanistan is about 2,250 kilometers. In the North of Pakistan, there are high
mountains of Hindu Kush ( Hindu Killer) and Pamirs, a narrow strip of Afghan Territory which
is called “Wakhan Corridor”. That is extended between Pakistan and Tajikistan. The boundary
of Afghanistan and Pakistan is called Durand Line. It was determined by Sir Mortimer Durand
in 1893, who was the foreign sectary of British India. There is no doubt that Afghanistan did
not recognised it when Pakistan became independent in 1947. The Afghan government has
always tried to gain support of those Pushtoons who are living at the border of Pakistan &
Afghanistan. Pakistan is also a gate-way to enter in the Central Asia States. Because the Central
Asian States are the center of new Great Game. Which is based on oil and other resources. The
border of Pakistan with Iran is 800 kilometers long. It was demarcated by the British
Commission in 1893, then British India Baluchistan was separated by Iran. Pakistan had no
special border dispute with Iran. Both countries signed a frontier agreement in 1957. Pakistan’s
border with China is found on the Eastern end of Afghanistan. The border of Pakistan & China
is 520 kilometers long. The border line was determined between Pakistan & China from 1961
to 1965 after a long series of agreements. Both countries have strong political ties also trade
and cultural relations with each other. The Pakistan & India border which is known as The
International Border. It is an International boundary which is demarcated by the British Raj in
1947. Both countries are separated due to the Line Of Control (LOC). Wagha border is the
ceremonial point between Pakistan & India. Along this border Lahore from Pakistan and
Amritsar from India lies. To the South of Pakistan, India Ocean & Arabian Sea are located.
Pakistan’s costal belt is almost 700 kilometers. The most important thing of Pakistan is that it
is located near the oil rich Gulf States.

5
History Of Gwadar:

Gwadar is a port city on the coast of South Pakistan's south-western Arab sea in
Baluchistan Province. It is the district head of Gwadar district. The Pakistan government
incorporated a new establishment in Gwadar District Province on July 1, 1977 in the district of
Gwadar district and in 2011 winter capital of Baluchistan province. Gwadar District, Gwadar
is 235000 and it covers 15210 sq km area. Its coast reaches about 600 km. In Gwadar district,
four Tehsil IG Jovani, Saini and Ormer are included.

In 1983, Khan of Qalat ruled over Gwadar from the Defender Sultan, Motte's defeated
ruler. When Sultan later regained the seat, he wanted the governor to continue his rule in
Gwadar. On September 8, 1958, Pakistan separated Gwadar from Oman. Gwadar officially
became a part of December 8, 1958. Gwadar is in the heart of the Arabian Forex and the
Persian Gulf. District of Gwadar border at Awaran and Lasbela, Iran on the south west,
Arabian Sea of South and District of North.

Importance Of Gwadar Port For Pakistan:

Gwadar's choice for the construction of Deep Sea Port, while studying the possibilities
for the development of Gwadar Port, both Karachi and Bin Qasim were considered for such
development, but important shipping agencies are due to remotest. It was not attracted, the
boundaries of the draft and a long run. Due to these reasons, Gwadar was selected as Pakistan's
third commercial port. Due to its ideal location in front of Oman and Oman Bay, the temporary
tension of the Gulf and the heart of Hermes, this port becomes a regional hub that serves the
upcoming commercial traffic of the Middle East and Gulf countries. The new port of Gwadar
will merge Karachi Port and Port Qasim. It will attract transit and transport trade from more
than twenty countries, including Sri Lanka, Bangladeshi, Oman, United Arab Emirates, Saudi
Arabia, Qatar, Iraq and Iran. These countries can export their goods to Gwadar and store
imported goods later in their countries for shipment. There are many benefits of this port.
Details of non-indirect non-profit benefits that will be found in the area and will collect the
national economy from this port. Given the importance of Gwadar Port, the government has
announced as Gwadar Duty Free Port and Free Economic Zone. A billion rupees were
allocated for the budget for the financial year 2004-2005 for construction of export zone and
Gwadar industrial city.

6
 He has increased the speed of development in the area. Other concerns announced by
the government are summarized as: A positive viewpoint for joining the private sector. BOT /
BOO based infrastructure development.100% Profit Return Returns. Tax holiday for ten years
from the start of commercial operation. 100% Profit Return Returns. Ownership rights.
Flexible Labour Rules. Subsidy on utility. Complete forgiveness from duty and sales tax on
imported plants and machinery for 10 years. The acquisition of investment will apologize the
tax for 5 years. Local export taxes are not leviable by the local government. Access to cars
provides a unique opportunity to serve both Gulf and Port Gwadar near the close proximity to
Central Asia. Pakistan needs to invest on better diplomatic relations with Arab countries and
cars. Therefore, it is estimated that oil reserves and other sources of cars will gradually become
the center of world attention in the coming years. However, a "peaceful and stable
Afghanistan" is needed.

The port will also help promote trade with the Gulf states, which keep 63% of the oil
reserves in the world, and in addition to disable the development capabilities of the world, and
to promote trans shipment of container cargo essentially will help. Regarding other major ports
in the region, Gwadar Port is the most important element of making unique, all of which are
located on the other side of the sea. The Gwadar port of the North, can easily provide services
and facilities to Afghanistan and China. Upcoming fishing harbour / industry. The fishing port/
industry, linked to this port, will facilitate the efficient exploitation of our 960 km long coast,
which will help to promote fish and crab exports and promote the food processing industry.
Gwadar can also be a possible source of gas and oil exploitation. These areas clearly indicate
the broad potential that exploits and will contribute to the national economy. Gulf areas and
Gulf areas and cars include the largest oil and gas resources worldwide.

Especially investing on the Gulf countries, big business centres with bulk port facilities.
Pakistan could not have been able to cash on this limited opportunity before the Gulf countries
have set up such ports. The Gulf is currently related to the Gulf due to the instability of the
world in the region and for any reason, Gwadar port will be more important only for the left-
hand in the case of open bay. Nevertheless, Iran's heart contact with western countries and its
regional dispute with Iraq are quite a major reason for the future of international community to
go beyond Gwadar rather than any Iranian port. Therefore, Gwadar port is expected to play an
important role in China, Afghanistan and Central Asia this year. Due to these factors Gwadar
needs key shipping rivals because it is the most efficient way of the Indian Ocean for global
markets. Therefore, Gwadar Port can be a viable option for the global community due to the

7
following reasons: it is not within the Gulf, therefore reducing the chances of blocking. It is
accessible to the land of Afghanistan and cars. It is located close to the other regional ports
nearby. Bulk cargo transmission shipment. Industry / installations related to oil storage,
refinery and petrochemicals. Export Processing and Industrial Zone. Export minerals and live
stocks. Services such as hotel accommodation, tourism etc. fishing industry. Ship maintenance
and ship building. Beach Industry construction of warehouses and stores. Port related facilities.
Under the mentioned facilities / industries built directly from the construction of Gwadar Port,
it will provide jobs for local areas and regions. Consider the importance of trade with the
upcoming cars of Gwadar Port with trade agreement with Tashkent. The Pakistan Government
(GPO) has properly cancelled the trade agreement with Tashkent. In this, Pakistan and
Uzbekistan have agreed to enter a Trafficking Transit Trade Agreement with Afghanistan to
benefit from the Gwadar Port facility and land route. According to the joint commander issued
after the representatives meeting of both sides on 29-30 December 2005, a Joint External
Affairs Commission has been formed to formulate details / trade committees and module
operations.

Development projects for Balochistan / Investment opportunities Gwadar will attract

substantial investments in its most developed province, by the regional trade axis. These funds
will allow roads and railways to be constructed, which will link to the rest of the coastal areas
of Pakistan, Iran and Afghanistan and will also help in finding resources for natural resources
and natural resources. It will ultimately improve the social and economic development through
local development projects. The Government has announced 3 billion grants to accelerate
development activities for the overall development of Balochistan on October 3, 2004. Apart
from this, the development of Gwadar port will also benefit the province / country's overall
economy and will disable its capabilities. It is expected that about 5 lakh people will get jobs
with the beginning of the project. The government is establishing technical training centres in
the area to train people. Although Gwadar is relatively free from the tribal influence, the people
of the area have two major concerns in their minds. First of all, people from the rest of the
country can throw people's arrival in minority.

Second, the local population is not in education and other skills that can affect the career
prospects. They fear that people coming from other areas can take a big part of the economic
opportunity. So ordinary people disagree with the government's policies as the destruction of
bombings and demonstrations / needle gas installation etc. However, people are definitely
looking shortly when economical lifts are visible. Oil Factor and Alternative Port. The present

8
population of Pakistan is 50 million. With the current growth rate of the population, the
country's oil requirements are constantly increasing. The fact is that our dependence on PC is
further complicated because our defence needs are also met through it. National oil reserves
are also dependent on the permanent pool from abroad. Depending on the availability of the
pool's armed forces for the effective fight for the war zone. Therefore, to keep in mind the
significance of SLOCs for supply of non-oil oil, will provide a very important alternative to
Gwadar port Karachi / Qasim ports.

9
China-Pakistan Economic Corridor Project:

INTRODUCTION:

China-Pakistan Economic Corridor is a framework for regional communication. The

CPEC will not only benefit from China and Pakistan but there will be a positive impact on Iran,
Afghanistan, India, the Central Asian Republic and the region. Increasing geographical

10
connectivity, road, rail and air transport system has increased, continuous and free exchange of
development and increasing contact with people, education, cultural and regional knowledge
and culture, trade and business Increasing cooperation with the help of more and more
enterprises and winning models for greater flow of activity, energy generation and further
development, will result in joint integration, joint integration and development of the region.
China travels to economic fields in the Pakistan Economic Corridor Globalized World. It will
establish peace, development, and winning models for all of them. China's economic corridor
is expected to improve the future, to promote peace, development and economy.

Benefits Of CPEC For Pakistan:

The benefits of CPEC for Pakistan are listed below:

 In strategic context, the CPEC is compatible with Pakistan's security and "East"
policy and will serve to promote strategic partnership.
 Gwadar Port, which is connected to China and Central Asia, on the high supply
and cross-border, can fully play markets in the role of economic recovery of
Pakistan.
 This gives us a great opportunity for GB and Baluchistan’s social and economic
development.
 Pakistan will take advantage of China's investment and preventing energy
shortage for necessary investment development. This will help Pakistan to
ensure the ability to become a Regional Trade Center and Energy Graduate,
which will lead to large transit income and employment opportunities.
 Even conservative estimates show potential earnings of US $ 100 billion by
transit in addition to generating employment opportunities in hundreds of
thousands of annual revenues.
 According to the sea and economy, Pakistan's 95% trade is much more
dependent on trade, growth and connectivity of Gwadar port is extremely
important, which will reduce the load in Karachi. And Bin Qasim ports have
made Pakistan Port for promoting sea-based trade.

CPEC & CHINA:

11
 Chinese Navy's presence is not only seen on this delicate view of Gulf India, Indian
Ocean of Indian Ocean is dominated by the United States, but it can also try to achieve Naval
power. In addition, the port of current land link can be used in China to promote its wide-scale
trade in Central Asia, and Middle East, because it reduces sea level by 10000 instead of 10,000
Will do. Gwadar China is a strategic position. Such a Caspian region is affecting an alternate
trade route for the western Xinjiang province, in energy, thus using Gwadar deep sea port as a
trade route. The Chinese economy has reached around $ 1.8 million each year and 7.3 percent
with GNP. China has $ 600 billion in foreign exchange reserves. China produces 70% of the
world's global replicas, micro-waves, CD players, shoes and toys. According to such strong
and capable economic growth rate, China is expected to be the world's leading economy in
2025. Its growing economic needs are being prepared to surrender several countries to restore
the country again. Buyers in the international field for this product.

To be a strong member of World Trade Organization (WTO), after which Chinese

government has been seriously executed and executed properly. Focuses on a Chinese effort
to emphasize regional economic progress and foreign insecurity that they plan to become a
powerful force. Because due to fall of Russia, the Chinese government succeeded in
controlling its practical, focused and fixed policies in a passive way. China has fully assisted
the development of Gwadar deep marine port for Pakistan, and thus, to strengthen global geo-
strategic ties in village development globally. As it is said correctly, "Pak-China friendship can
not be seen in dollar terms and pounds ", and it will not be fair to defeat China's interest in
Gwadar's project but on the other hand, China can take benefits from Gwadar's project. In many
projects Chinese is the strategic and economic aspects of interest explained below:

 Xinjiang is the largest and yet populous province in China. Xinjiang shares are
on borders with Pakistan, Middle East Central Asia organizations and
Afghanistan. Seriously, in the west, ethnic Turks are concerned Religious,
cultural and oral differences related to the majority have called themselves
right. Commitment. Consider the aspects like this aspect of Muslim Central
Asian states, one's presence The Chinese government is a loop nuclear site, hot
water access and oil presence through silk. The policy of 'Go West' adopted the
economic development of the Xinjiang province. Gwadar Port is very excited
for the economic growth of its south-west Xinjiang province especially for the
Chinese economy. China has given the option to use the Gulf and Eden's
smallest approach, only 2500 km on the Silk Route. This approach can also be

12
 taken as an economic opportunity for those who struggle Improve relations with
neighbouring countries from two countries.
 Gwadar can also provide the observing opportunity to China for naval American
forces in the Persian Gulf 460 km further west of Karachi and away from Indian
Naval Bases of Gujrat and Mumbai.

In military and strategic terms, Gwadar Port can help China monitor. Come
from Persian Gulf and Transit with this view of about 60% of Chinese energy
requirements as SLOCs from Persia. Chinese Navy is likely to improve Pakistan's
coastal defence. With the help of reliable friend China on 23 November 2009, the
rolling out function of the Indian Republic Air Craft has evidence of deep twin
confidence between Pakistan and China. Indian activities have always been lost in
Persia Gulf and Adan Bay, lost one eye to Chinese Navy General, Director of the Navy's
General Staff Logistics Department, issued a high secret memorandum in which the
Liberal Army's strategic plans of Pacific Ocean. According to the "High Sea Defence"
policy to increase the control, Zo said, "We can not now accept Indian Ocean as a single
Indian ocean. "In a Navy base on the Indian side sea, China has been examined by the
Indian hegemonic Design in this area will help. Emerging as a proper and direct
approach to the Gulf region and Africa markets.

Through the current route passing through the South China Sea, Pacific Rim,
Malacca and Sri Lanka, China's vessels will have to be around 10,000 kilometers and
through Gwadar, the distance will only reach 2500 km. Gwadar presence in China will
help in tracking the oil movements in the Gulf of China. Gwadar Port is an alternative
to China if the criticism of Malakia is denied its access to Asia, Europe and Africa.

CPEC & Central Asian States:

Central Asia and South Asia, including the region of Caucasian, the people of Central
Asia, Afghanistan and Iran and the energy rich lack are the main regions of the ocean, because
of the influx of its large amount has created the area as a center in the international arena.
Kazakhstan's capital rich energy has become an opportunity for regional players and 'Treasure
Hunt' in additional regional key players. At present, every country is trying to get more than

13
the treasury. Central Asia's representatives have a developmental economy and foreign policy
in the resource-based current scenario, and besides regional and additional regional key players
are trying to share more potentially with emerging Central Asian’s economy. The Car States
needs to be solved by the sea-border borders of the Caspian Sea, because Turkmenistan, Iran
and Uzbekistan have a constant discussion.

Cars need to travel economically viable pipeline. Cars, despite their strong
implementation, still depend on Russia. These countries need a shop to eliminate Russian
influence and to strengthen their economy by exporting their multi-mineral and oil resources
to these countries. They have two ways, which pass through Iran (Chabahar) and the other is
running through Pakistan (Gwadar). Because of the vast international environment, Western
countries are not in favour of a commercial route through Iran; so Gwadar emerges as a
potential alternative port. Pakistan was to realize the capabilities of the CARs and to realize its
foundation immediately Diplomatic and commercial relations, and it is eager to show high
profile. This region also revived the old regional corporation for development (RCD), carriers
and economic cooperation to increase their membership in an effort to create a framework for
the economic agreement (ECO) Links Pakistan are always very interested in helping and
deliver those States. Some facts due to which Gwadar is important for CARs are listed below:

 The Caspian area is a basic need of suitable way for the pipeline.
 Turkey plans to establish a real estate between Central and South Asia to
develop geographical space (India), this proposal failed due to commercial
consolidation. Pakistan is the best choice in the current global conditions and
availability of Silk Route.
 The car still depends on Russia, mainly the old Moscow based communication
grid due to control International mail, telephone, telephonic links and other
communication infrastructure. Russia is also dangerous to the European Central
Asian market because of the possibility of cheap Asian gas because Russia will
compete with Asian gas Gazprom. To get rid of Russian. Apart from the
Caspian Sea, two of their proprietary facilities are available, which pass through
Iranian Chabahar Port and other Pakistanis. Western oil companies are not in
favour of the trade route through Iran; so Gwadar emerges as the most capable
port.

14
 With the development of Gwadar Port, all CARs commerce is sure. It is expected to
adopt Pakistan's lowest available route through the benefits of Gwadar and Trade. Proven
CARs deposits and production. Gwadar Port will enter the effects: -

 The expected production of dry cargo is more than liquid cargo, which requires large
ships and thus deep sea port will be better.
 In comparison to Kazakhstan and Kyrgyzstan other CARs will produce more cargo and
Gwadar will have the lowest access to hot water.
 In Kazakhstan, Turkmenistan and Uzbekistan, more liquor can be exported by cargo
pipelines and it may be possible. Through the Caspian region, there is a 1800-km long
way in the alternate routes of the Mediterranean Sea. Gwadar will only be 1400 km
long.
 The route to the Mediterranean Sea passes through Russia, which is concerned about
Europe, Kazakhstan, Uzbekistan, and Turkmenistan.
 The ocean through the South China Sea Port is 1400 km long to the western way to the
liquid cargo pipeline.
 European countries are trying to reach the mineral rich region by the Caspian region
compared to other key players by Gwadar and Afghanistan.
 In order to pass liquid cargo via Gwadar, the Gwadar, Caspian region and China will
have US $ 2.5 billion, US $ 3.3 billion, US $ 35 billion.
 Investment and distance for gas pipelines are more or less same than the pipeline limit.

CPEC & The Persian Gulf States:

Persian Gulf countries are the world's oil traders. They are two-thirds of international
oil trade. Apart from exports in the Oil Sector, there are very few exports in the Gulf region
and depends on the mass imports worldwide. Apart from these imports, this area is now
developing in exports with Iran and India. Consider the above facts, Gwadar Port, due to its
location, will be important in the Gulf area. Due to the following reasons:

 Oman, next door neighbour, China and cars are likely to take advantage of the
project by investing on trade. So Oman's government is very interested in this
project.

15
  Millions of dollars are available in pipeline to take various development
projects. A Power Home is being constructed with a cost of Rs 50 million.
 Gwadar Portal Complex can be able to provide exhibit, store, transport,
transport, and field jobs, worthy of market and manufacturing services for
export-export opportunities.

Though Western countries are not part of this region, but this port is important for them, as
well as for the following reasons:

 The European Union needs to meet the trusted and harmful trade route passing
through the passage of the European Union, connecting the Caspian area to
worldwide markets and through the passage of Iranian or Russian lands.
Politically necessary and furiously desired course. The European financial
alliance also points to the Arabian Sea, which is passing through Afghanistan,
on the coast of Pakistan.
 The option to use Iran's trade route through Afghanistan, which is contrary to
interests of U.S The way through it Gwadar will be a viable option.
 To combat Chinese presence in Indian Ocean.

CPEC & Asian Interests:

There is a real concern about the development of Gwadar Port near Iran. Iran's ports
close to the Chabahar and Bandar Abbas. Gwadar can port creating a commercial competition,
which can be exploited by India. In addition, concerns have identified the move by establishing
oil refinery in Gwadar to share trade, transit and strategic capabilities. SAARC Financial
Development and Cooperation Agreement has been hit rapidly. Economic development,
improving the quality of life, fragrant, education, human resources improvement and poverty
reduction. A major marketplace in the global village is included in the area. Pakistan with this
the development of SAARC countries will enable Gwadar port to be supplemented by
contemporary transport facilities and sea ports. According to any enemy activity to alleged
surveillance of the Saudi Navy for Pakistan Navy. The current involvement indicates that
during the tension tour, India tried to stop the Pakistani imports from the south-east.
Implementing similar approach by threatening Indian SLOCs are the same importance for the
Coal Pro-Co-reaction. "Due to its strategic location, Gwadar Port will become a big port of

16
the region" and will be able to provide trans shipment and housing. South Eastern Asian
countries facilities.

Conclusion:

Now military and economic strength depend on oil. In military and strategic terms,
Gwadar will help Pakistan monitor the SLOCs Persian Gulf. Gwadar is strategically important,
in this regard, lies in the SLOCs coming out of the strategic chocked approach, where 13
million barrels of oil will be transit daily. Globally, with Gwadar water, the entire Indian can
deal with the ocean trade. Courses of many Eastern countries, Pacific Rim and Persia Bay.
Pakistan will be able to stop any 'bottling' of its Navy. During 1971 and during the Kargill crisis
during the Indo-Pak dispute, Gwadar's development port would also provide strategic depth to
Pakistan's Pirates, both trade and military assets. Gwadar Sea Port is not just providing.
Strategic depth but Pakistan will bring prosperity to the entire region.

17