Custody of Gwadar 1958

Posted by: Ali Tariq

Gwadar is a port city on the Arabian sea in costal Baluchistan .Gwadar is
situated on the southwestern Arabian sea on a natural hammerhead
shaped peninsula namely Gwadar West Bay and Gwadar East Bay.Gwadar
is largely fiat baleen land with two hills Koh-e- Batil and Koh-e-mehdi.Kohe-batil maximum height is 449ft at the head of the hammerhead peninsula
and that of Koh-e-Mehdi height is 1,112ft to the east of the city Gwadar is a
port city on the Arabian ea in costal Baluchistan .F or many centuries
Gwadar was under the control of various regional and colonial states and
science 1958 it has been under the administration of Pakistan .
Strategically gwadar is located at the apex of the Arabian Sea and at the
mouth of the Gulf of Oman. The city is merging as a trade hub and a transit
Chinese oil and timber imports and transshipments. The Gwadr is one of
the few plane cities in Pakistan like Faisalabad, Jauharabad nd Islamabad.
The district was divided in to sub divisions for administrative purpose,
namely Gwadar and Pasni.These sub divisions are further divided in to
tehsil and sub tehsils.Gwadar Sub-division have two tehsils named
Gwadar and Jiwani, and other sub tehsil named Suntsar .Pasni Subdivision is divided in to two tehsil Pasni and Omara .The 600 kilometers
long coast line and un-irrigated tracks of Kulanch and Dansht valleys, has
always been an important chapter of Makran history.
In pre Islamic era the inhibition of Gawdar and the most area of Baluchistan
appear to b ancient .The area show the inhibition of Bronze Age people
where settlements existed around some of the areas oases. Later the
name of area become Makran because the people of this area were known
to Moka or Maka so by this way later the name become Makran .Then the
Persian Empire conquered this area. The founder of Persian Empire in that
time was Cyrus the Great who conquered this region. Then after the
collapse of Alexanders empire the area was ruled by Seleucus Nicator
.The area come under their rule about 303 BCE.
Then in 711 CE Muhammad bin Qasim captured Gwadar and then the
interval of time the area come under various powers ,including the
Mughals from east and safavid from the west .Until the Arab Muslim
Armay of Muhmmad bin Qasim captured he town of Gwadar in 1711 CE
and over the intervening and the amount of time the area as contested by

various powers ,including Mughls (from the east) and the sfavids (from the
west).so this era was considered as Islamic era of Islamic rule in the history
of Gwadar .In 1581 the Portuguese captured ,sacked and burnt Gwadar .,
Gwadar In this era was called the Centuries of local rule in by various
Baloch tribes and followed by almost two centuries .In 15150s according to
Ottoman Admiral Sayed Ali Reas in the inhibition of Gwadar were Bloch
and their chief was Malik Dinar. In 1783 the khan of kalat defeated the
ruler of Muscat nd continue his rule in Gwadar by appointing a wali
(governor) and the wali was ordered to subjugate the nearby coastal
town .The Gwadar fort was built during Omani rule.
Pakistan purchased Gwadar from Oman for 3 million dollars on 8september
1958 I and Gwadar officially become part of Pakistan that time Gwadar was
a small and under developing village with a population of few thousand
.Before his Gwadar was a part of Oman In I july 1977 Pakistani
government integrated Gwadar in to Baluchistan as District headquarters of
the newly formed Gwadar District. The Pakistani government in 2002 make
Gwadar port project by this project main aim was to built industrial
complexes and connect the town via modern high way to the rest of
Pakistan so by this way the Pakistan government developed Gwadar in
1993, into a major port city with a deep sea port and connected with
Pakistans highway and rail networks. The first phase had been completed
by the end of 2004
To making a modern sea port the first phase was completed in December
2005 and the construction was stared from 22 December 2002.Gwadar
port become operational in December 2009.stategically Gwadar is very
important location between the oil rich Middle East, heavily populated south
Asia and economically emerging region of central Asia . The Gwadar port
opened in spring 2007 by the Pervez Mushraf in the presence of Chinese
communication Ministr Li shnghin, and the port become an operational in
2008, the first ship to dock bringing 52000 tons of hat from Canada
.Commrcially,it is hoped that the Gwadar port garneted billions of dollars in
revenues and create at least two million jobs .In 2007 the government of
Pakistan handed over port operation to PSA Singapore for 25 years and
give the status of tax free for 40 years. The population of Gwadar according
to 1998 census was 178989 of which 93% were Muslims with minority of
Hindus; the population was estimated to be over 250000 in 2005.
http://historypak.com/custody-gwadar-1958/

Importance of Gwadar Port for Pakistan

IMPORTANCE OF GWADAR PORT FOR PAKISTAN
Selection of Gwadar for construction of Deep Sea Port. While carrying
out feasibility study for development of Gwadar port both Karachi and Bin
Qasim were also considered for such development but found not attractive
to major shipping agencies due to remoteness from main shipping routes,
limitations of draft and comparatively long turn around time. Due to these
reasons Gwadar was selected as the site for 3 rd commercial port for
Pakistan.

Geo-Strategic Importance

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Gwadar port is located about 267 NM West of Karachi. Because of its

ideal location at the mouth of gulf and opposite strategic choke points of
Strait of Hormuz and Gulf of Oman the port is visualized to become a
regional hub serving incoming and out going commercial traffic of Middle
East and Gulf countries. The new port of Gwadar will supplement Karachi
Port and Port Qasim. It will attract transit and trans-shipment trade from
over twenty countries including Srilanka, Bangladesh, Oman, UAE, Saudi
Arabia, Qatar, Iraq and Iran. These countries may open their warehouses
in Gwadar for export of goods and storing of imported goods for later
shipment to their countries.
Non Quantifiable Benefits of Port. Details of indirect non quantifiable
benefits which the people of region will get and would accrue to the
national economy from this port.
Duty Free Port & Free Economic Zone/Incentives. 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.
100% profit repatriation.
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.
No local octroi or export tax leviable by local Govt.

Access to CARs. Gwadar Port located in proximity of Arabian Gulf and

Central Asian Republics provide it unique opportunity to serve both.
Pakistan needs to capitalize on them through better diplomatic ties with
Arab states and CARs. It is therefore anticipated that oil reserves and
other resources of CARs would gradually become the focus of world
attention in coming years. However, in case of exports to and from CARs
a peaceful and stable Afghanistan is must. The port will also help in
promoting trade with Gulf States possessing 63% of worlds oil reserves
and will prove instrumental in promoting trans-shipment essentially of
containerized cargo besides unlocking the development potential for
hinterland. The most important factor that makes Gwadar Port strategically
unique is the location with respect to other major ports in the region, which
are all located on the other side of the sea. Gwadar port being towards
north can easily provide services and facilities to CARs, Afghanistan and
China.
Upcoming Fishing Harbour/Industry. Planned fishing harbour/industry
linked with this port will facilitate efficient exploitation of our 960 KM of long
coast
which would give boost to fish and crab exports and would promote food
processing industries as well. Gwadar could also be a potential source of
gas and oil exploitation.[1] These areas clearly indicate the vast potential
which should be exploited and will help contribute towards national
economy.
Instability in Gulf. Gulf region and CARs contain one of the largest oil and
gas resources of the world respectively. Gulf countries in particular, have
capitalized on it by constructing major commercial centers with bulk port
facilities. Pakistan, could not cash on this opportunity earlier due limited
resources which Gulf countries did and so have well established ports
these days. Gulf presently is badly exposed to world due instability in
region and in case of blockade of Gulf due to any reason, the Gwadar port
would become more important due to only choice left. Beside this, sour
relations of Iran with western countries and her territorial disputes with Iraq
are enough reasons for international community to opt for Gwadar rather
than any Iranian port in future. Gwadar Port is therefore expected to act as
a vital link to China, Afghanistan and Central Asian Republics throughout

the year. Due to these factors Gwadar is going to be the necessity of major
shipping competitors as it is the most efficient route to Indian Ocean for
world markets. Gwadar Port can therefore become a viable option for
world community due to the following reasons:

It is not within Gulf, thereby reducing chances of being blocked.

It provides shortest access to the land locked Afghanistan and CARs.

It is located in close proximity of other regional ports of the Gulf.

Trans-shipment of Bulk Cargo.

Oil Storage, Refinery and Petrochemical related

industries/installations.

Export processing and Industrial Zone.

Export of minerals and live stock.

Services ie hotel accommodation, tourism etc.

Fishing industry.

Ship repairs and Ship building.

Construction of Warehouses and Storages.

Beach Industries.
Port Related Facilities. Construction of under mentioned
facilities/industries is directly linked with the construction of Gwadar Port
and will provide employment opportunities for its locals and the region.
Trade pact with Tashkent. Considering importance of trade from CARs vis
-a-vis up coming Gwadar port. Govt of Pakistan (GOP) has very rightly
concluded a trade pact with Tashkent. In this Pakistan and Uzbekistan
have agreed to enter into a trilateral transit trade agreement with
Afghanistan to benefit from the Gwadar port facility and land routes. As per
the joint communiqu issued after meeting of reps of both sides on 29-30
Dec 2005, a Joint Ministerial Commission has been formed to formulate
details/trade quantum and the modus operandi.
Development Plans/Investment Opportunities For Balochistan

By making Gwadar the pivot of regional trade, Pakistan will also

attract considerable investment into its most under developed province.
These funds will allow construction of roads and railways, linking the
coastal region with rest of the Pakistan, Iran and Afghanistan and will also,

facilitate cultivation of vast regions and exploration of natural resources.

This would ultimately help socio-economic uplift of locals through various
development projects.

The government on 3 October, 2004 has also announced Rs 3.000

Bn grant for speeding up development activities for overall uplift of
Balochistan. Beside these the development of Gwadar port would also
benefit the overall economy of province/country and will unlock its
potentials. It is anticipated that around 2.5 million people will get jobs with
start of this project. The government is setting technical training centres in
area to train people. Although Gwadar is comparatively free from tribal
influence, however people of area have two major concerns in their minds.
Firstly, influx of people from rest of the country may throw them in minority.
Secondly, local population lacks in education and other skills, which may
affect their career prospects. They have a fear that people coming from
other areas may grab the major share of economic opportunities. General
public therefore show a resentment against government policies in form of
bomb blasts and demonstrations/destruction of sui gas installation etc,
however once economic lifts become visible then people would certainly
realise their short sightedness.
Oil Factor and the Alternate Port. Pakistans present population is
arround160 Million. With the present growth rate of population, the
countrys oil needs are increasing continuously as well. The fact that our
dependence on POL gets further compounded as most of our defense
needs are also met through it. National oil reserves are also dependent on
the continuous POL from abroad. The war stamina depends on the
availability of POL to armed forces for effective fighting. Therefore, keeping
in mind the importance of SLOCs for provision of uninterrupted oil supply,
Gwadar port would provide much-needed alternate for Karachi/ Qasim
ports.
http://lovelypakistan.pakability.com/p/importance-of-gwadar-portfor-pakistan.html
Chinese Interest and Investment
GWADAR THE DREAM CITY
What is Chinese Interest in Gwadar?
Gwadar City is the Dream Project of Pakistan

Key Note on Gwadar Progress and Development:

Gwadar project has a very significant role not only for Pakistan but also for
the whole region. Pakistans unique geography and geo political factors in
the region have made it one of kind opportunity for Pakistan. Solid
commitments by Chinese and Pakistani government with concrete steps on
ground, growing interest by Gulf countries and Investors around the globe
are indicators of the bright future of Gwadar.
Investment in any Project in E.P.Zone Gwadar is an investment with a 20
years Tax Holiday facilities and trustworthy, reputed company committed to
excellence and confidence and in a location which is already focus of the
world.
Which are the countries directly benefited by Gwadar?
Because of unique geography, Gwadar virtually benefits all countries in the
region. In todays increasingly interdependent world it would not be wrong
that indirectly it benefits the whole world. However, some of the important
countries directly benefited by Gwadar beside Pakistan and China are as
following:
a.
Tajikistan. A land locked country that will get access to international
waters for its Oil and Gas exports and other imports.
b.
Uzbekistan. Again a land locked country, greatly benefited by
Gwadar.
c.

Turkmenistan. Same as above.

d.
Afghanistan. Afghanistan has been historically dependent upon
Pakistan for its sea routes. Present reconstruction efforts need more and
more materials, but the existing port facilities already under pressures from
Pakistans needs find it difficult to manage. Besides, through Gwadar the
access to international waters would be further reduced to great advantage
of Afghan reconstruction.
What is Chinese Interest in Gwadar?
China has a great strategic interest in Gwadar. Following are the important
ones:-

a.
China is heavily dependent upon the oil from the gulf, at present this
oil passes via a very long route, through the straight of Malacca under US
influence. After this oil has reached the Shanghai or the Chinese East Cost,
it has to be transported thousands of miles in land to West of China. By
using Gwadar port and than Karakoram Highway (KKH) its much safer,
cheaper and shorter route to west of china.
b.
Middle East is very important region in the world because of its Oil
Reserves and large markets. China has a natural dependence on this but
does not have means to influence it. Government of Pakistan has already
committed to providing a Navel Base to China in Gwadar. This will not only
help secure the Gwadar but also take the Pakistan China Friendship to new
heights.
c.
Chinese Goods will find an easier, shorter and secure route to Middle
East increasing profitability and increasing trade.
d.
China will greatly benefit from the industrial zone by setting up
industries close to the markets.
Chinese Commitments:
It is important to understand the Chinese commitments which are indicative
of importance that china attaches to Gwadar. China has very strongly
committed to Gwadar project, because of her interests. Following are the
major inputs from the China:a.

China has been instrumental in design of the project.

b.
China is providing approximately 80% of the cost of Port in shape of
grants and soft loans.
c.
Over 500 Chinese workers have worked on the project on 24 hour
basis to complete the port setup. There are still a large number of Chinese
workers and engineers working on the project.
d.
China has further committed to provide money and resources as and
when needed.
e.
China is setting up a Dry Port at the Pak China border to take
advantage of shorter route to sea through Gwadar.

f.
China has paid US$ 360 million to Pakistan for expansion and up
gradation to all weather traficability of Karakoram Highway linking Pakistan
with China. The contract has been awarded to Frontier Works Organization,
who has also started the project.
g.
Feasibility and engineering studies to connect China with Gwadar
through pipeline and railway track has already begun. This railway track
also has the significance of being an engineering marvel of the world.
What is International Significance of Gwadar?
Another angle to look at Gwadar is its significance and effect to rest of the
world. Following are the major developments in this regard.
a. India is threatened by Gwadar as this new port and associated
developments will help increase the influence and significance of Pakistan.
This development also brings Pakistan and China more close. A stronger
Pakistan with higher stature in the international world is not welcome to
India. India is also weary of increased dependence of CARs, Afghanistan
and China on Pakistan, with obvious benefits to Pakistan. Pakistan will
become an important player in the region through Gwadar and India is
troubled by the very thought.
b. This is the best and most advanced port in the whole region, it is
therefore getting heat from many corners. In reality this is going to be to the
benefit of every one. Shorter and more economical route to CARs and
Afghanistan is especially going to be beneficial to India who eagerly looks
to increasing trade with them.
c. Turkmenistan is a country blessed with natural gas and oil. But being
land locked, it cant benefit from them. Trans Afghan Gas Pipeline (TAP)
from Turkmenistan to Gwadar, the long dormant project that hopes to pump
Turkmen natural gas to markets in south Asia is finally ready to step off the
drawing board. This project is being developed by CENTGAS.
d. Kazakhstan is also a country with lot of Oil but no means to access the
international market. A pipeline is also planned to transport this oil to
Gwadar and than rest of the world.
e.
Many more companies in the world from various countries would be
setting up their businesses to take the advantage of State of the art world

class port the best in the region, with cheap labor and close proximity to the
huge Middle East market.
f.
Due to good geography and unscathed sand beaches, tourism and
recreation resorts have good potential and large multinational companies
are taking up locations for the purpose.
g.
Far from just an academic point of view, recent interest of various
international companies to include Shell for setting up mega oil refinery in
the area, and deep interest of UAE business groups in Gwadar are
important landmarks in this light. UAE alone is committed to investing $30
Bn, with further understanding of $60 Bn more. They have plans to build
Hotels Resorts and Recreation centers in Gwadar. Its not long when other
Arab Countries, overloaded with high returns from the record oil prices also
expose their plans in the area.
The Baluch Nationalism Threat Myth.
As mentioned before, a project of such huge international significance and
advantage to Pakistan just could not go without its enemies playing a role
to downplay this mega project and pessimists airing their voices. A strong
prosperous and important Pakistan is a hope for all well wishers and
Muslims alike, and exactly this is what is dreaded by those who dont want
a Muslim country so strong. They in order to undermine Pakistan are
creating, supporting and propagating disinformation about the so called
Baluch Nationalism. Following are some of the facts to be considered in
this regard.
a.
Govt. of Pakistan has launched a development budget of Rs. 125 Bn
for Baluchistan, other than Gwadar. This unprecedented commitment from
government has spurred the development in province to new height.
b.
There are total of 27 Districts in Baluchistan of which there is only one
district where there is some trouble. No other district has any sign.
c.
Even in this district there are 14 tribes and only one tribe has a
problem. This tribe further has more than two factions of which only one
has trouble.
d.
This district is closer to Lahore than Gwadar. How can it affect
Gwadar more than Lahore?

e.
A Baluch in the area who once tended sheep and had hard time
making two ends meet, is now driving a four wheel drive. Local feuds have
stronger economic interests with the investors and are therefore quite
opposed to any disturbance.
f.
Most recently people of Gwadar rallied to demonstrate their support
and gratitude to government of Pakistan for mega projects in Baluchistan.
They also took an opportunity to air their disapproval of the miscreants
playing in Indian hands. Wide coverage of this in local press and large
turnout speak volumes about this.
g.
Common people in Baluchistan are greatly benefited by this project,
providing them with new employment and business opportunities.
h.
A military cantonment is being set up in Gwadar to safeguard
countries interests. A Battalion of Pakistan Army has already been
stationed with more troops in follow up.
Major Developments at Gwadar
1. Govt. has pledged Rs 63 Bn to connect Gwadar with the
national Railway Network through 963KMs track, this is the
biggest ever project for Railway. A track is also being worked
on from Gwadar through Turbat, Panjgore and Rato Dero to
link up CARs.
2. 715 KMs Makran Coastal Highway linking Gwadar with
Karachi, has been completed.
3. The new International Airport has received a grant of US$75
millions from Oman and Rs 563.35 million from Pakistan
government. The work is to start shortly as soon as the port
starts its operations.
4. Prime minister has allocated Rs. 21 Billions to speedup the
development.
5. President has announced the establishment of an Oil
Refinery, British Petroleum and Shell along with others have
expressed their interests in the project. The Refinery is to be

constructed on 2500 Acres, and would help Gwadar become

the hub of Oil for Pakistan, as said by the prime minister.
6. The work on fourteen major Roads inside Gwadar is in full
swing i.e. Baluchistan Boulevard, Jinnah Avenue, and Costal
Highway for onward linking with Afghanistan, Iran and
CARs.
7. President in his recent visit to Quetta has announced
following about Gwadar.
1. He has reiterated that Gwadar Port be ready by the end
of the year.
2. He has instructed to complete Gwadar-Turbat-HoshabBasima road within three years to connect Gwadar port
with RCD highway and Indus highway. This would
connect Gwadar with Iran and Turkey besides further
improving the communications to and from Gwadar.
8. World Bank has offered loans for construction of railway links
with Gwadar, Pakistan Govt. is considering the offer.
9. New Expression of Interest to manage Gwadar Port
Operations from three international port operators is a very
encouraging sign, it will help government to make best of
the opportunit
Chinese $13 billion Investment in Gwadar Megaport City . utmost
priority to develop Gwadar, as it will serve the Nations dream and
wishes of prosperity Gwadar MegaPort City
Its amazing that tomorrows small fishing village Gwadar is fast emerging
as a Deep Sea Port today. This is important to note that the Government
of Pakistan, keeping in view its utmost significance in the area, has
declared Gwadar as a Duty Free Port and a Free Economic Zone. This
has not only enhanced its commercial worth manifold but has also
accelerated the pace of development to an incredible extent.

In fact, Gwadar enjoys the status of a third Deep Sea Port of Pakistan
which has a special significance with reference to trade links with
Central Asian Countries, Persian Gulf, East Africa, United Arab
Emirates and North Western India.
Gwadar by virtue of its finest location, development projects, recreation
programmes and Governments special attention, will soon turn into a
city which will be comparable with cities like Singapore, Hong Kong and
Dubai.
In view of the promising future of Gwadar, people from Pakistan and
abroad who believe in safe and sound investment, are taking keen interest
in Gwadar.
Historical Info
Located at the entrance of the Persian Gulf and about 460 kms from
Karachi, Gwadar has had immense Geostrategic significance on many
accounts. The continued unstable regional environment in the Persian Gulf
in particular as a result of the Iran/Iraq war, the Gulf war and the
emergence of the new Central Asian States has added to this importance.
Considering the Geo-economic imperative of the regional changes, the
ADBs Ports Master Plan studies considered an alternate to the Persian
Gulf Ports to capture the transit trade of the Central Asian Republic (CAR)
as well as the trans-shipment trade of the region. Both Karachi and PQA
were considered for such development but were found unattractive to major
shipping lines due to the remoteness from the main shipping routes, the
limitations of draft for mother ships and large bulk oil carriers and the
comparative long turn around times. The ADB studies, however
considered Gwadar to have the most advantageous location for such
an alternative port in the region, which could handle mother ships and
large oil tankers in due course. Keeping that aspect in view as well as
the inherent strategic and economic benefits that Gwadar Port
offered, the transport plan of the 8th Five Year Plan (1993-94) of Pakistan
included the development of Gwadar Port as an essential element of its
aims and objectives. Technical and financial feasibilities therefore were
under taken resulting in decisions for the development of Gwadar Port by
the Govt. of Pakistan. The Project started on 22 March 2002, is on fast
track and will Inshaullah complete in schedule time i.e March 2005. In fact it
would surprise many that with initiative and calculated risk, we have

received merchant ships since Jan 2003 and have been able to off load
hundreds of tones of cargo imported for the Project, thus saving precious
time and money which otherwise is required for transportation of the same
cargo by road from Karachi/PQA to Gwadar.
Gawadar is the District Headquarter of Makran Division in
Balochistan, the largest province of Islamic Republic of Pakistan. It is
situated on the coastal line of Makran. Along the coastal line ,there are four
Tehsils including Gawadar, Jiwani, Kulanch and Ormara. Jiwani is the only
one on the western part of Gawadar, joining Iranian border on Pakistani
side. Kulanch and Ormara, on its eastern side are connecting District
Lasbela and to Karachi finally. The distance between Gawadar and Karachi
in this way, is around 715 km.
Geo-Political Importance Of Gawadar
Dubai is the hub of business not only for Gulf but also for rest of the
world including Europe, United States, Africa, China and Central Asian
States, simultaneously. The gulf region is facing many political conflicts at
the moment and huge disturbances in the current administrative structure
are expected in the coming years. In such a scenario, a substitute of Dubai
is essential to be located before the crisis hits the finances of millions. The
substitute shall be a nearest point probably, to ensure continuous supply
line of oil from Gulf to the outer world. Fortunately, Gawadar proves to be
the nearest and infact more cost-effective substitute of Dubai, from
many aspects.
China is emerging as a super economic power of the world in the recent
years. Despite occupying a huge area of worlds land, it doesnt have any
port of hot waters, which can be used the whole year. The distance of
Chinese industrial approach to the Shinghai port is approximately 16000
km and the sea travel of 2-3 months is additional. This costs them a lot in
the form of taxes and duties as well. As compared to this, Gawadar port
is only on a distance of 2500 km from China and the port is working
for the whole year because of the hot waters here. Therefore, the
interest of China in the development of Gawadar port is infact in the
interest of Chinese economy.
The central Asian states, after the independence from USSR, are trying to
develop their economies. These states are land locked and Karachi was

expected to provide them the services through Afghanistan. For the

purpose, a highway from Peshawar to Karachi was constructed but due to
Afghan crisis, this line couldnt be established. The Afghan situation is till
not clear, so, Gawadar being near to Iranian border will provide port
facilities to Central Asia as well.
Geo-Economic Importance Of Gawadar
With a population of 160000, the Gawadar Town on Makran Coast is now
set to become a hub of shipping, commercial and industrial activities.
Pakistan and China had signed a comprehensive agreement on March 16,
2002 at Beijing undertaking the task of construction of Gawadar deep
seaport of universal standards. The work on the first phase of this mega
project, which is being constructed by Chinese Harbor Engineering
Company, is now at full swing. The project is bound to be a vital landmark
in the economic development of the region. The port comes as a muchneeded national requirement in the wake of the rise in cargo traffic at
Keamari and Bin Qasim, which are operating at full capacity. It is expected
that Pakistans maritime traffic would rise by three folds by 2010. With
the construction of a third port, it is estimated that Pakistan will not only be
able to meet its own requirements of the future but also offer its port
facilities to the neighboring countries.
Gwadar is now destined to be the most important upcoming coastal
town located on the inter junction of the three most strategically and
economically important regions of the world that are oil rich Middle East,
South Asia where one- fifth of world population lives and the Central Asian
Republics endowed with mineral wealth and an educated and highly skilled
and disciplined workforce.
Source: Gwadar port pakistan | Pakistan Daily
https://gwadarprivatescheme.wordpress.com/chinese-investment/
Importance of Gwadar Port for Pakistan
ARTICLE FRM VIEWS TO NEWS
Selection of Gwadar for construction of Deep Sea Port. While
carrying out feasibility study for development of Gwadar port both
Karachi and Bin Qasim were also considered for such

development but found not attractive to major shipping agencies

due to remoteness from main shipping routes, limitations of draft
and comparatively long turn around time. Due to these reasons
Gwadar was selected as the site for 3rd commercial port for
Pakistan.
Geo-Strategic Importance
Gwadar port is located about 267 NM West of Karachi. Because of
its ideal location at the mouth of gulf and opposite strategic choke
points of Strait of Hormuz and Gulf of Oman the port is visualized
to become a regional hub serving incoming and out going
commercial traffic of Middle East and Gulf countries. The new port
of Gwadar will supplement Karachi Port and Port Qasim. It will
attract transit and trans-shipment trade from over twenty
countries including Srilanka, Bangladesh, Oman, UAE, Saudi
Arabia, Qatar, Iraq and Iran. These countries may open their
warehouses in Gwadar for export of goods and storing of
imported goods for later shipment to their countries.
Non Quantifiable Benefits of Port. Details of indirect non
quantifiable benefits which the people of region will get and would
accrue to the national economy from this port.
Duty Free Port & Free Economic Zone/Incentives. 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.
100% profit repatriation.
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.
No local octroi or export tax leviable by local Govt.
Access to CARs. Gwadar Port located in proximity of Arabian Gulf
and Central Asian Republics provide it unique opportunity to serve
both. Pakistan needs to capitalize on them through better
diplomatic ties with Arab states and CARs. It is therefore
anticipated that oil reserves and other resources of CARs would
gradually become the focus of world attention in coming years.
However, in case of exports to and from CARs a peaceful and
stable Afghanistan is must. The port will also help in promoting
trade with Gulf States possessing 63% of worlds oil reserves and
will prove instrumental in promoting trans-shipment essentially of
containerized cargo besides unlocking the development potential
for hinterland. The most important factor that makes Gwadar Port
strategically unique is the location with respect to other major
ports in the region, which are all located on the other side of the
sea. Gwadar port being towards north can easily provide services
and facilities to CARs, Afghanistan and China.
Upcoming Fishing Harbour/Industry. Planned fishing
harbour/industry linked with this port will facilitate efficient
exploitation of our 960 KM of long coast
which would give boost to fish and crab exports and would
promote food processing industries as well. Gwadar could also be
a potential source of gas and oil exploitation.[1] These areas
clearly indicate the vast potential which should be exploited and
will help contribute towards national economy.
Instability in Gulf. Gulf region and CARs contain one of the largest
oil and gas resources of the world respectively. Gulf countries in
particular, have capitalized on it by constructing major
commercial centers with bulk port facilities. Pakistan, could not
cash on this opportunity earlier due limited resources which Gulf
countries did and so have well established ports these days. Gulf
presently is badly exposed to world due instability in region and

in case of blockade of Gulf due to any reason, the Gwadar port

would become more important due to only choice left. Beside
this, sour relations of Iran with western countries and her
territorial disputes with Iraq are enough reasons for international
community to opt for Gwadar rather than any Iranian port in
future. Gwadar Port is therefore expected to act as a vital link to
China, Afghanistan and Central Asian Republics throughout the
year. Due to these factors Gwadar is going to be the necessity of
major shipping competitors as it is the most efficient route to
Indian Ocean for world markets. Gwadar Port can therefore
become a viable option for world community due to the following
reasons:
It is not within Gulf, thereby reducing chances of being blocked.
It provides shortest access to the land locked Afghanistan and
CARs.
It is located in close proximity of other regional ports of the Gulf.
Trans-shipment of Bulk Cargo.
Oil Storage, Refinery and Petrochemical related
industries/installations.
Export processing and Industrial Zone.
Export of minerals and live stock.
Services ie hotel accommodation, tourism etc.
Fishing industry.
Ship repairs and Ship building.
Construction of Warehouses and Storages.
Beach Industries.
Port Related Facilities. Construction of under mentioned
facilities/industries is directly linked with the construction of
Gwadar Port and will provide employment opportunities for its
locals and the region.
Trade pact with Tashkent. Considering importance of trade from
CARs vis -a-vis up coming Gwadar port. Govt of Pakistan (GOP)
has very rightly concluded a trade pact with Tashkent. In this
Pakistan and Uzbekistan have agreed to enter into a trilateral
transit trade agreement with Afghanistan to benefit from the
Gwadar port facility and land routes. As per the joint communiqu

issued after meeting of reps of both sides on 29-30 Dec 2005, a

Joint Ministerial Commission has been formed to formulate
details/trade quantum and the modus operandi.
Development Plans/Investment Opportunities For Balochistan
By making Gwadar the pivot of regional trade, Pakistan will also
attract considerable investment into its most under developed
province. These funds will allow construction of roads and
railways, linking the coastal region with rest of the Pakistan, Iran
and Afghanistan and will also, facilitate cultivation of vast regions
and exploration of natural resources. This would ultimately help
socio-economic uplift of locals through various development
projects.
The government on 3 October, 2004 has also announced Rs 3.000
Bn grant for speeding up development activities for overall uplift
of Balochistan. Beside these the development of Gwadar port
would also benefit the overall economy of province/country and
will unlock its potentials. It is anticipated that around 2.5 million
people will get jobs with start of this project. The government is
setting technical training centres in area to train people. Although
Gwadar is comparatively free from tribal influence, however
people of area have two major concerns in their minds. Firstly,
influx of people from rest of the country may throw them in
minority. Secondly, local population lacks in education and other
skills, which may affect their career prospects. They have a fear
that people coming from other areas may grab the major share of
economic opportunities. General public therefore show a
resentment against government policies in form of bomb blasts
and demonstrations/destruction of sui gas installation etc,
however once economic lifts become visible then people would
certainly realise their short sightedness.
Oil Factor and the Alternate Port. Pakistans present population is
arround160 Million. With the present growth rate of population,
the countrys oil needs are increasing continuously as well. The
fact that our dependence on POL gets further compounded as
most of our defense needs are also met through it. National oil
reserves are also dependent on the continuous POL from abroad.

The war stamina depends on the availability of POL to armed

forces for effective fighting. Therefore, keeping in mind the
importance of SLOCs for provision of uninterrupted oil supply,
Gwadar port would provide much-needed alternate for Karachi/
Qasim ports.
__________________
http://www.cssforum.com.pk/css-compulsory-subjects/pakistanaffairs/44456-importance-gawader-port.html
Strategic Importance of Gwadar Port
Tariq Kakar
According to the geography of human mind, ideology and
intellectuality of anthropoid nature always changes due to the
strategy of time and power in international political culture.
The government of Pakistan has realized the necessity of a
seaport at Gwadar, a city situated at the Southwest coast of
Balochistan, and measures have been taken for the construction
of this port and allied projects. Gwadar is located at the face of
the Iranian Plateau and is a doorway to the oil rich Persian Gulf.
Gwadar also gives easy access to the natural resources of Central
Asian States. Pakistan is situated at a geostrategic location from
where the country can potentially be the regional hub of trading
and economic activities. Gwadar Port Project is the first step for
Pakistan to achieve such an important status in the international
community. The international players will all be interested in the
trade flowing through Gwadar.
The features which give Gwadar such an advantage are all
natural; Gwadar has a deep and warm water coast, it is situated
at a junction of different regions and it is part of the resourceful
Balochistan. The most beneficial feature which gives Gwadar port
the utmost political and economic importance is that Gwadar is a
linking region. Gwadar Port is a link between the East and the

West. Gwadar can change the strategic environment and

economy of the entire political community. Pakistan government
began Gwadar port project but has not given attention to it in
these past few years. Gwadar is no longer the top priority in the
agenda of the country. The construction and developmental
activities in Gwadar have ceased. The first phase of Gwadar port
is complete, but the second phase and many other parallel
projects are incomplete. Construction for plans such as the
railway link, industrial and economic zone, international airport
and other structures is not in final phase. The main reason of
Gwadar not being a top priority anymore is that the economic
policies of Pakistan are not oriented geopolitically and hence do
not allow Gwadar to be realized as a significant site. The relations
of Pakistan with the neighboring countries are also unfavorable
for Gwadar because of the security issues in Pakistan, especially
in Balochistan, and the unwillingness of these countries to
contribute funds.
Pakistans economy is growing and Gwadar Port Project can
further speed up the growth but Gwadar can only give output of
profits if there is an input of investments. The port project is at its
early stages and further developments have been stopped. The
construction at the port needs to be back on track and the parallel
projects should be initiated. Only after the completion of Gwadar
port can the vision of Gwadar functioning as the trading hub of
the region be achieved. The economic, domestic and foreign
policies should be shaped in favor of Gwadar port. Pakistan should
also work on the law and order situation in the country and
Balochistan especially in the Gwadar region for the Port to be a
secure location. Relations with the neighboring countries should
be favorable for the port and only in such conditions can Gwadar
develop and flourish and enhance Pakistans economy and
strategic importance in the region along with the rest of
international political system.

China is assisting Pakistan in development of this port. China is

also helping in the construction of many other associated projects
including railroad links and industrial complexes. The concerns of
the United States of America and India are growing with regards
to this Chinese involvement in Pakistans interests. They are
considering this involvement as a potential threat.
The United States has created troubled relations with some
countries in the Middle East as a result of attempting to install a
version of democracy in the Muslim world. These relations have
been further deteriorated due to the Global War on Terrorism
(GWOT). The United States is keeping its military forces in the
region in order to protect its own national interests. A military
base may be established close to the Persian Gulf if it seems to be
necessary to preserve those interests. Thus, it may be taken into
consideration that the United States may desire to install that
base in Gwadar port. Such a scenario would put Pakistan-China
relations in jeopardy as well as the relations of Pakistan with the
Middle Eastern countries.
India views China as a threat and is surrounded by Chinese
influence from three sides; Tibet, Myanmar and Pakistan. Iran also
views China as a threat since Gwadar may be depriving Iran of its
economic profits by taking away trade from Iranian ports. In
attempts to counter this scene, Iran has developed its own port;
Chabahar. Chabahar has been constructed with the help of India
and a plan has been made to construct a 200km road connecting
Chabahar and Afghanistan. This will provide fluent trade to and
from Central Asia. This way India and Iran will manage to
suppress the threats posed by Gwadar.
Citizens of Pakistan are also seemingly opposing the Gwadar Port
Project. The people of Balochistan seem to see an advanced
Gwadar as a threat to their cultural lifestyle. The tribal leaders

even have actively shown disinterest in the project. They see it as

a threat to their hold on the people.
With so many obstacles and hindrances in the way, such as the
War on Terrorism, Indo-Pak rivalry and Pakistans political
situation, Pakistan should be very careful about the steps taken
towards this project and many other advancement projects. The
initial stage of the construction of Gwadar port is complete but
many stages are yet to be completed. The success of the project
depends on the policies adopted by the Pakistan government.
Foreign policies, security concerns, economic planning etc. should
be ensued strategically and carefully otherwise they may create
many complications for Gwadar port. This thesis will identify all
the necessary steps required to bring the Gwadar Port Project into
action. The Gwadar Port will bring about economic and political
gains in the regional and international politics.
Author is a visiting lecturer in International Islamic
University, Islamabad.
Published in The Balochistan Point on September 21,
2014.
Disclaimer: The views expressed in this article are those
of the author and The Balochistan Point not necessarily
agrees with them.
http://thebalochistanpoint.com/strategic-importance-of-gwadarport/
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Perspective
Located at the entrance of the Persian Gulf and
about 460 kms from Karachi, Gwadar has had
immense Geostrategic significance on many
accounts. The continued unstable regional
environment in the Persian Gulf in particular as
a result of the Iran/Iraq war, the Gulf war and the
emergence of the new Central Asian States has
added to this importance. Considering the Geoeconomic imperative of the regional changes,
the ADBs Ports Master Plan studies considered
an alternate to the Persian Gulf Ports to capture
the transit trade of the Central Asian Republic
(CAR) as well as the trans-shipment trade of the
region. Both Karachi and PQA were considered
for such development but were found
unattractive to major shipping lines due to the
remoteness from the main shipping routes, the
limitations of draft for mother ships and large
bulk oil carriers and the comparative long turn
around times. The ADB studies, however
considered Gwadar to have the most
advantageous location for such an alternative
port in the region, which could handle mother
ships and large oil tankers in due course.
Keeping that aspect in view as well as the
inherent strategic and economic benefits that