Will Gwadar Grow to Become a Major Metropolis Like Shenzhen?

"We believe Gwadar is following in the footsteps of Shenzhen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." Hao-Yeh Chang,  China Pak Investments Corporation

Gwadar: The Next Shenzhen?

Gwadar is booming. It's being called the next Shenzhen by some and the next Hong Kong by others as an emerging new port city in the region to rival Dubai. Land prices in Gwadar are skyrocketing, according to media reports. Gwadar Airport air traffic growth of 73% was the fastest of all airports in Pakistan where overall air traffic grew by 23% last year, according to Anna Aero publication.  A new international airport is now being built in Gwadar to handle soaring passenger and cargo traffic.

Recent Aerial View of Gwadar Hammerhead Growth

Gwadar Property Boom:

The volume of Gwadar property searches surged 14-fold on Pakistan’s largest real estate database, Zameen.com, between 2014 and 2016, up from a prior rate of a few hundred a month. “It’s like a gold rush,” said Chief Executive Zeeshan Ali Khan to an Express Tribune newspaper reporter. “Anyone who is interested in real estate, be it an investor or a developer, is eyeing Gwadar.”

Chinese private investment company China Pak Investment Corporation has recently announced it is acquiring 3.6 million square foot International Port City project in Gwadar. It plans to develop a $150 million gated community to handle the influx of 500,000 Chinese professionals expected in Gwadar by 2022.

Proposed Gwadar International Airport


China Pak Investment Announcement:

On October 20, 2017, Pakistan's Geo TV news reported that China Pak Investment Company plans to increase its commitment to  invest $500 million in Gwadar in the first phase of a project aimed at building homes for around 500,000 incoming Chinese professionals expected in Gwadar by 2023. An earlier September 29, 2017 press release by China Pak Investment Corporation said as follows:

"The final master plan for China Pak Hills is currently being refined in Hong Kong, and will feature a range of state-of-the-art amenities including an open-air shopping boulevard; indoor shopping mall; restaurants and eateries; an international school and nursery; six community parks; indoor and outdoor sports facilities including tennis courts and a resident's gymnasium; a water desalination plant and recycling centre. China Pak Hills will also be home to the Gwadar Financial District, catering to the growing financial sector and adding much needed A Grade office space to Gwadar's growing market."

Gwadar Port Development:

Gwadar port's planned capacity when it is completed will be 300 to 400 million tons of cargo annually.  It is comparable to the capacity of all of India's ports combined annual capacity of 500 million tons of cargo today.   It is far larger than the 10-12 million tons cargo handling capacity planned for Chabahar.

To put Gwadar's scale in perspective, let's compare it with the largest US port of Long Beach which handles 80 million tons of cargo, about a quarter of what Gwadar will handle upon completion of the project. Gawadar port will be capable of handling the world's largest container ships and massive oil tankers.

Gawadar port is being built in Pakistan by the Chinese as part of the ambitious $46 billion China-Pakistan Economic Corridor (CPEC) that will eventually serve as Hong Kong West for  growing Chinese trade with the Middle East and Europe.  CPEC will also enable Pakistan to bypass Afghanistan to trade with Central Asia through China across China's borders with Tajikistan, Kyrgyzstan and Kazakhstan.

India's Strong Opposition: 

Pakistan suspects that India's real objective in Afghanistan and Iran is to locate its intelligence agents under the cover of Chabahar port construction workers to sabotage China-Pakistan Economic Corridor (CPEC) and support Baloch insurgency to destabilize Pakistan. These suspicions were strengthened when Indian spy Kulbhushan Yadav, operating under the fake name Husain Mubarak Patel, was arrested in Balochistan in March, 2016. Yadav confessed he was operating as an undercover RAW agent from his base in Chabahar, Iran. Indian Prime Minister Narendra Modi has made no secret of his strong opposition to CPEC and his support for Baloch insurgents.

Chinese Commitment to Pakistan: 

Unlike US-Pakistan ties that have been essentially of a transactional nature, Pakistan-China relationship appears to truly strategic.  A recent book "The China Pakistan Axis: Asia's New Geopolitics" by American policy analyst Andrew Small quotes a top Chinese official as saying to his American counterparts that "Pakistan is China's Israel". Earlier, in 2011, some news reports quoted Chinese officials as warning that "any attack on Pakistan would be construed as an attack on China".  Growing Chinese investment commitments in Pakistan now exceed $100 billion, a further indication of the importance China attaches to Pakistan as one of its closest allies.

Summary:

China-Pakistan ties appear to be truly strategic.  The strength of Chinese commitment to Pakistan is increasing with growing investments in China-Pakistan Economic Corridor related projects. It is now highly visible in terms of the influx of the Chinese money and citizens into Pakistan. China's actions on the ground reinforce the credibility of Chinese officials' reported quotes describing Pakistan as "China's Israel" and warnings to the United States that "any attack on Pakistan would be construed as an attack on China".

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Comments

Riaz Haq said…
#China Turning #Pakistan's #Gwadar Port Into Regional Giant. #CPEC

https://www.voanews.com/a/pakistan-china-gwadar-port/4084175.html

An unprecedented Chinese financial and construction effort is rapidly developing Pakistan’s strategically located Arabian Sea port of Gwadar into one of the world’s largest transit and transshipment cargo facilities.

The deep water port lies at the convergence of three of the most commercially important regions of the world, the oil-rich Middle East, Central Asia, and South Asia.

Beijing is developing Gwadar as part of the China-Pakistan Economic Corridor, known as CPEC. The two countries launched the 15-year joint mega project in 2015 when President Xi Jinping visited Islamabad.

Under the cooperation deal construction or improvement of highways, railways, pipelines, power plants, communications and industrial zones is underway in Pakistan with an initially estimated Chinese investment of $46 billion.

The aim is to link Gwadar to landlocked western China, including its Muslim-majority Xinjiang region, giving it access to a shorter and secure route through Pakistan to global trade. The port will also provide the shortest route to landlocked Central Asian countries, including Afghanistan, through transit trade and offering transshipment facilities.

Chinese fuel imports and trading cargo will be loaded on trucks and ferried to and from Xinjiang through the Karakoram Highway, snaking past snow-caped peaks in northern Pakistan.

‘Qualitative change’

Gwadar will be able to handle about one million tons of cargo annually by the end of the year. Officials anticipate that with expansion plans under way, the port will become South Asia’s biggest shipping center within five years, with a yearly capacity of handling 13-million tons of cargo. And by 2030, they say, it will be capable of handling up to 400-million tons of cargo annually.

China has in recent months begun calling CPEC the flagship project of its global Belt and Road Initiative, or BRI. The “qualitative change” from an experimental project to flagship project underscores the importance Beijing attaches to CPEC, said Zhao Lijian, the deputy chief of mission at the Chinese embassy in Islamabad.

Out of 39 “early harvest” projects under CPEC, 19 have since been completed or are under construction with a Chinese investment of about $18.5 billion, Lijian told VOA. The progress makes it the fastest developing of all of at least six BRI’s corridors China plans to establish, added the Chinese diplomat.
Riaz Haq said…
THE EXPRESS TRIBUNE > BUSINESS
Pakistan’s construction industry – the hot cake for foreign investors

By Tehreem HusainPublished: October 23, 2017

https://tribune.com.pk/story/1538687/2-infrastructure-building-pakistans-construction-industry-hot-cake-foreign-investors/

The construction industry is playing an important role in economic growth of Pakistan. Recent (provisional) estimates published in the Economic Survey of Pakistan show that the industry grew 9.1% in FY17 and contributed 2.7% to the country’s gross domestic product (GDP).

BMI Research has also provided a healthy growth outlook for the sector, putting it at 11.8% annually from 2016-20 and 9.1% over 2016-25.

The signing of the China-Pakistan Economic Corridor (CPEC) agreement and improvement in the country’s security situation have been the key to giving boost to not only the construction industry, but Pakistan’s image abroad. With China having the first-mover advantage in injecting foreign investment into the country, other countries have followed suit.

The sector has also been an important recipient of foreign direct investment (FDI). This can be judged from the latest figures provided by the State Bank of Pakistan, which show that the construction industry received a net inflow of $35.7 million in August 2017.

How attractive the industry is perceived to be for foreign investors can be gauged from the fact that in the current fiscal year from July-August FY18 the industry has received $55.7 million relative to $1.6 million in the same period of last year.

Locally, investment has also been boosted by government policies such as reduction in duties and taxes on building materials like steel, construction machinery and equipment and computerisation of land ownership records.
Riaz Haq said…
Despite #Tillerson, #US Won't Abandon #Pakistan for #India | RAND. #China #CPEC #Modi

https://www.rand.org/blog/2017/10/despite-tillerson-us-wont-abandon-pakistan-for-india.html


It has become commonplace to caution American policymakers against irrational exuberance when dealing with India: Keep expectations low (conventional wisdom goes) and you won't be disappointed. In the wake of U.S. Secretary of State Rex Tillerson's visit to New Delhi this week, perhaps the same advice could be directed to India's leadership. Despite a warm welcome by Prime Minister Narendra Modi, the pleasantries at Gandhi Smriti, and the promises of “an even brighter future,” don't expect a radical change in U.S. policy. There are structural reasons for India to moderate its expectations of what it can realistically expect from the Trump administration, regardless of anything the secretary of state—or even the president—might say.

There is no new U.S. policy towards Pakistan—and there won't be one soon. On August 21, Trump announced a “change [in] the approach and how to deal with Pakistan. We can no longer be silent,” he stated. Ears pricked up in Islamabad and New Delhi alike. But in the two months since the administration's roll-out of its new strategy for South Asia, no significant actions towards Pakistan have been made public. If a sea-change is underway, it is hidden beneath the waves.

This should not be a surprise: So long as the U.S. has troops in neighboring Afghanistan, it will be reliant on Pakistan for logistical support, transit, and—perhaps most importantly—Islamabad's influence with both the Taliban and its affiliated Haqqani Network. With the addition of about 5,000 U.S. troops to the effort in Afghanistan—roughly a 50 percent increase over the baseline at the end of the Obama administration—U.S. exposure will grow rather than recede.

A concrete demonstration was provided just two weeks ago: On October 12, an American woman, her Canadian husband, and their three children were released after five years of Haqqani captivity. Whether this was a conveniently-timed military rescue or a secretly-negotiated operation, it reminds the U.S. of Pakistan's ability to help—and to harm. Afterwards, Tillerson expressed his “deep gratitude to the Government of Pakistan and the Pakistani Army,” and posited “a U.S.-Pakistan relationship marked by growing commitments to counterterrorism operations and stronger ties in all other respects.”

The U.S. and India don't see eye-to-eye on China. Earlier this month, Tillerson made a major speech contrasting America's relationships with India and China. “We'll never have the same relationship with China, a non-democratic society,” (PDF) he said, “that we can have with a major democracy” such as India. He criticized China's Belt-and-Road-Initiative (BRI) infrastructure program, and proposed a joint Indo-U.S. effort towards “countering that with alternative financing measures.”

But Tillerson said nothing about where the funds for such an ambitious venture might come from. China has pledged $46 billion for the Pakistan piece of its framework alone. The U.S. administration plans to reduce its foreign affairs budget by 28 percent—a cut that Tillerson fully supports. India is unlikely to spend countless crores for the construction of roads and railways in other nations when it has so many infrastructure needs of its own. Moreover, India has consistently balked at any suggestion of a de facto alliance geared at limiting China's influence. Perhaps this summer's stand-off at Doklam will turn out to be a game-changer? If so, Delhi may remember that the Trump administration—in contrast, for example, to that of Japan's Prime Minister Shinzo Abe—refrained from any statement in support of India throughout its most serious confrontation with China in a quarter-century.
Riaz Haq said…
Large-scale #manufacturing in #Pakistan sees 11.3% growth in first two months of FY 2017-18

https://en.dailypakistan.com.pk/business/large-scale-manufacturing-sees-11-3pc-growth-in-two-months/


LSM share stands at 80pc in total manufacturing

Large-scale manufacturing (LSM) observed a growth of 11.3 percent during first two months (July-August) of fiscal year 2017-18 on year-on-year basis.

According to the data by the Pakistan Bureau of Statistics, the sector recorded an increase of 13 percent in July. The annual growth target for the LSM is 6.3pc, while it had achieved 5.6pc in previous financial year 2016-17.

In August, the LSM observed a growth of 8.5 percent on annual basis.

In total manufacturing, LSM’s share stands at 80pc, while small-scale manufacturing constitutes 13.7pc. Similarly, the mega manufacturing constitutes 10.7pc of total GDP (Gross Domestic Product) against 1.8pc of small level manufacturing.

As per Ministry of Industries’s data regarding 36 products, these items made 5.44pc of total LSM growth in August. The share of 65 items, whose manufacturing data is provided by provincial bureaus of statistics, recorded at 1.3pc.

The Oil Companies Advisory Committee’s (OCAC) data regarding 11 items stated that theses items contributed 1.8 percent in growth of LSM during the second month.
Riaz Haq said…
Bank of #China (BoC) is 2nd Chinese bank to open in #Pakistan after Industrial and Commercial Bank of China (ICBC)

http://www.business-standard.com/article/news-ani/bank-of-china-becomes-operational-in-pakistan-117110701224_1.html

The Industrial and Commercial Bank of China (ICBC) has already opened two of its branches in Karachi and Islamabad and is providing various services, including corporate finance, investment banking, foreign deposits, project loans, and working capital loans.

The Bank of China (BoC) became operational in Pakistan as it inaugurated its first branch in Karachi on Tuesday.

Emphasising that it was "a great honour" for the bank to be launched in Pakistan, BoC Chairman Chen Siqing noted that the Karachi branch was its first in South Asia.


The Dawn quoted him as saying that the bank would strengthen the "brotherly relations" between the two countries in the financial sector.

Siqing also highlighted that the bank could help Pakistan effectively reap the benefits of Beijing's economic prosperity.

Welcoming the bank to Pakistan, State Bank of Pakistan (SBP) Governor Tariq Bajwa, said that the increased diversity of foreign banks would increase the country's economic resilience.

He also expressed hope that Pakistan would learn from BoC's expertise in the small and medium enterprises sector.

Speaking during the launch, Acting Chinese Ambassador to Pakistan Zhao Lijian said that the opening of the bank "marked the confidence of the Chinese corporate sector in Pakistan's economic situation."

President Mamnoon Hussain, who was also present on the occasion, expressed confidence that the newly-launched bank will help accelerate infrastructure development and overall economic growth of the country.

He termed the BoC's arrival to Pakistan a "memorable event in the everlasting friendship between Pakistan and China".

President Hussain assured the BoC of the continued support of the government and State Bank of Pakistan in expanding its operations in the country.

The BOC was allowed to commence banking business in Pakistan on September 19 this year.

This is the second Chinese bank which has been allowed to operate in Pakistan. The State Bank of Pakistan had issued a license to BoC in May 2017.

The Industrial and Commercial Bank of China (ICBC) has already opened two of its branches in Karachi and Islamabad and is providing various services, including corporate finance, investment banking, foreign deposits, project loans, and working capital loans.

Riaz Haq said…
Govt denies rumours of $500 million Chinese investment in Gwadar real estate

https://www.pakistantoday.com.pk/2017/10/23/govt-denies-rumours-of-500-million-chinese-investment-in-gwadar-real-estate/

The federal government on Monday warned the general public not to pay any heed to the rumours about a heavy investment, allegedly made by a Chinese in the real estate business in Gwadar, and asked the investors not to invest in any phoney company which might be involved in a massive fraud.

In an official statement, the spokesman of Ministry of Planning, Development and Reform cautioned the public at large not to pay heed towards an alleged investment of US $500 million in Gwadar’s real estate business under the name of ‘China Pak Hills’.

Apropos news item – “Chinese company invests $500 million in Gwadar residential project” – published in a section of the press, has claimed that China Pak Hills has invested US $500 million in Gwadar’s real estate business. It is to put on record that Gwadar Development Authority (GDA) has not issued any No Objection Certificate (NOC) to a housing project named as ‘China Pak Hills’, said an official handout by China Pakistan Economic Corridor (CPEC) Secretariat at Ministry of Planning, Development and Reform.

“The report is baseless and highly exaggerated. Even GDA has no information about $500m Chinese investment in the housing sector,” said the spokesperson.

He further stated that the news item presented a highly exaggerated scenario about Chinese professionals shifting to Gwadar by 2023. “The newspaper should have contacted the ministry of planning before publishing such news item having such content,” the statement added.
Riaz Haq said…
Experts divided on economic benefit of Chabahar Port
SANJAY KUMAR | Published — Monday 4 December 2017

http://www.arabnews.com/node/1203746/world

India’s Ministry of External Affairs said in a statement that the port would “provide alternative access to landlocked Afghanistan into regional and global markets… an integrated development of connectivity infrastructure including ports, road and rail networks would open up greater opportunities for regional market access and contribute towards the economic integration and benefit of the three countries and the region.”
However, Phunchok Stobdan, a former Indian ambassador to Kyrgyzstan and a distinguished academic, questions the economic viability of the port.
“In terms of slogans, yes, you can call it a new era of connectivity. But how much substance is there, we don’t know. It is just a beginning. It is more about political opportunism than economic benefits, as I see it,” said Stobdan, who is also a senior fellow at New Delhi-based think tank, Institute of Defence Studies and Analysis (IDSA).
“What do you want to export and what you want to import?” he continued. “There are no high-value items to trade between India and Afghanistan.
“I feel the Indian government should also work out some mechanism to open the Wagah border,” he continued. “But Pakistan has been using the strategy of denial for very long time. It is working in their favor. It is a larger political issue; it is not an economic or connectivity issue.”
Stobdan also claimed that “the significance lies in the fact that, before Trump puts (forward) lots of objections, India has been brought into the picture.”
The Chabahar port, located in the Sistan-Balochistan province of Iran’s southern coast, is seen by some as a counter to Pakistan’s Gwadar Port — which is being developed with Chinese investment and is located around 85 km from Chabahar — and, by extension to the China-Pakistan Economic Corridor (CPEC).
“We can say lot, but the economy will speak,” Stobdan said. “You think the Chinese did not know about the Chabahar port? They knew. The market is in Pakistan. The market is in India. The market is not in the Sististan-Baluchistan area.”
Afghan ambassador Abdali said: “The Chabahar port will be open to everyone. All the stakeholders and I hope that no one thinks of it as a counter to any other initiatives. At the same time, I consider it a major development for the whole region.”
Riaz Haq said…
THE EXPRESS TRIBUNE > BUSINESS
Egyptian billionaire ventures into Pakistan's real estate with $2b project
By Bilal MemonPublished: December 22, 2017

https://tribune.com.pk/story/1590668/2-egyptian-billionaire-ventures-pakistans-real-estate-2b-project/

Pakistan is set to see a new real estate venture – this time in the federal capital – as demand for housing keeps motivating projects across different parts of the country.

The $2-billion project, named Eighteen Islamabad based on its location, was formally launched in Islamabad on Friday and is a partnership between Egypt-based Ora Developers and Saif Group, the Pakistani conglomerate with business interests largely in textile, energy and real estate sectors. Additionally, Kohistan Builders and Developers is also partaking in the project.

Spread across 2.77 million square yards that will also feature a 18-hole golf course, the project will look to sell over 2,000 residential units – 1,068 villas of different sizes and over 900 apartments – along with commercial properties, meant to serve the upper-middle income groups.

The project also brings Egyptian billionaire Naguib Sawiris back to Pakistan after Orascom Telecom Media and Technology Holding, in which he has a majority stake and is also the chairman, had acquired Mobilink before the company sold its stake to VimpelCom.

Sawiris, however, is now on a different mission to Pakistan.

“I was here around 20 years ago when we started Mobilink,” said Sawiris, the chairman of Ora Developers, as he addressed a gathering of journalists at Serena Hotel.

“We wanted to continue our business in Pakistan and as we ventured out of telecom we thought of real estate development because I was horrified at the prices people were paying for villas and apartments in Islamabad,” he continued, referring to the phenomenally high prices of real estate in Pakistan that have continued to shoot in the last few years.

According to a World Bank estimate, there is a shortage of 10 million housing units in Pakistan, a deficit that continues to grow in urban areas. With population growth at 2%, the shortage will keep piling.

Sawiris said his aim would be to expand to other cities including Karachi and Lahore, but the challenge would be to find land in the provincial capitals.

“Land availability is the biggest issue facing the real estate sector in the country. Until the issue is resolved, challenges will remain.”

The $2-billion project features a 30% component of equity, to be injected by the investors, along with a 30% stake to be financed with major banks in Pakistan. Talks of these modalities are ongoing, said Eighteen Islamabad Chief Executive Officer Tarek Hamdy.

He also said no-objection certificates have been obtained from the Capital Development Authority in Islamabad and transfer deeds will be given to buyers since Eighteen Islamabad owns the land already.
Riaz Haq said…
First #Djibouti ... now #Pakistan's #Gwadar tipped to have #China's naval base. #India #Iran #Chabahar #Navy #Military #Hormuz #RedSea https://sc.mp/2CINAJb via @SCMP_News

Beijing plans to build its second offshore naval base near a strategically important Pakistani port following the opening of its first facility in Djibouti on the Horn of Africa last year.

Beijing-based military analyst Zhou Chenming said the base near the Gwadar port on the Arabian Sea would be used to dock and maintain naval vessels, as well as provide other logistical support services.

“China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port,” Zhou said.

“It’s a common practice to have separate facilities for warships and merchant vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services.”

Another source close to the People’s Liberation Army confirmed that the navy would set up a base near Gwadar similar to the one already up and running in Djibouti.

“Gwadar port can’t provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support,” the source said.

The confirmation follows a report this week on Washington-based website The Daily Caller in which retired US Army Reserve colonel Lawrence Sellin said meetings between high-ranking Chinese and Pakistani military officers indicated Beijing would build a military base on the Jiwani peninsula near Gwadar and close to the Iranian border.

Sellin said the plan would include a naval base and an expansion of the existing airport on the peninsula, both requiring the establishment of a security zone and the forced relocation of long-time residents.


Gwadar port is a key part of the China-Pakistan Economic Corridor, a centrepiece of Chinese President Xi Jinping’s broader “Belt and Road Initiative” to link China through trade and infrastructure to Africa and Europe and beyond. The corridor is a multibillion-dollar set of infrastructure projects linking China and Pakistan, and includes a series of road and transport links.

Sellin also said the Jiwani base could be “signs of Chinese militarisation of Pakistan, in particular, and in the Indian Ocean”.

Chinese military observers said Gwadar had great geostrategic and military importance to China but China was not about to “militarise” Pakistan.

Zhou said China wanted better access to the Indian Ocean, which was now largely limited to the Strait of Malacca in Southeast Asia. The Gwadar port could be a transit hub for sea and land routes once the corridor’s railway was up and running, helping improve and cut the cost of logistics for China.

“The Chinese naval flotilla patrolling in the Gulf of Aden and other warships escorting Chinese oil tankers in the Indian Ocean need a naval base for maintenance as well as logistical supplies because they can’t buy much of what they need in Pakistan,” Zhou said.

Rajeev Ranjan Chaturvedy, a research associate at the Institute of South Asian Studies at the National University of Singapore, said India was well aware of China’s plans in Pakistan.

“China finds it very useful to use Pakistan against India and ignore India’s concerns, particularly on terrorism issues. That has created a lot of stress in the relationship between Beijing and Delhi,” he said.

“[But] Indian naval capabilities and experience in the Indian Ocean region are fairly good. Much better than Pakistan and China.”

Riaz Haq said…

Dubai vs Gwadar: port cities chart a course for share of world’s economy

By Ashraf Aboul-Yazid and 3 collaborators

https://www.wikitribune.com/story/2018/01/11/pakistan/dubai-vs-gwadar-port-cities-chart-a-course-for-share-of-worlds-economy/30686/

A strategic port at the confluence of the Arabian Sea and the Gulf of Oman in southern Pakistan is continuing to push its rival megaports in the United Arab Emirates, pitting the lesser-known Gwadar against Dubai in a bid to move goods faster and more cheaply to some of the most populated countries of the world.

“Many economic analysts believe that Gwadar is another Dubai emerging on the world’s map,” said Tariq al-Shammari, a writer and self-described activist, who wrote about the expansion of the Pakistani port for OpenDemocracy, a UK-based political website. “Gwadar port will become the main sea gate for Central Asia.”

As it becomes easier to send goods through Gwadar, Dubai may see a threat to its regional influence, al-Shammari said.

“This challenging point, recently, has caused a silent economic war in the Gulf of Oman between two groups of countries; Pakistan, China and Qatar on one side, India and the UAE on the other,” he wrote.

How the ports stack up

Dubai’s two major commercial ports — Port Rashid and Port Jebel Ali — provide significant revenue to the UAE. Jebel Ali has the biggest man-made harbor in the world and the biggest Middle East port, and more than 5,000 companies from 120 countries rely on its services for goods ranging from consumer items to heavy construction machinery.

Gwadar’s deep sea port is strategically located to provide easier access to the Gulf region and the Middle East for China, especially the northwest Xinjiang region, and central Asia countries. The overland distance from Gwadar to Kashgar, in China, is 1,500 miles, while it is another 2,500 miles to move across China to Shanghai. Cargo ships have to move double the distance, again, to reach the Middle East waters.

The Gwadar corridor will reduce the transport time for goods to Western China by about 60 or 70 per cent, according to Liu Ying, a research fellow at the Chongyang Institute who studied the economics of the port (The Telegraph).

China’s influence

The Gwadar port is a key project in China’s One Belt, One Road initiative (South China Morning Post), which seeks to build strong economic connections between China and the countries along the old Silk Road – and well beyond.

Gwadar was built with financial and technical assistance from China, which took operational control after the Port of Singapore Authority pulled out of a 40-year port management and development contract because it was unable to get the land it sought to develop a free trade zone. The Gwadar port had been unable to become fully operational because of unsettled issues between Islamabad and the port authority.

The pivot to China “will also enable the dragon to swim in the Indian Ocean, which is strategically important for China as it expands its influence across the region, according to The National, a newspaper based in Abu Dhabi in the United Arab Emirates.

“To ensure the security of shipments along existing routes, a Chinese naval presence at Gwadar could also patrol the Indian Ocean sea lanes. Of concern to Washington and New Delhi is the Chinese naval presence near the Strait of Hormuz and its strategy of building a ‘string of pearls’ presence on the Indian Ocean rim,” the newspaper reported.

The Gwadar Development Authority is working on developing residential and commercial areas at the port, spurring growth in real estate and services. As observers note, some of the projects mirror those in Dubai, of which it may always be more of “sister city,” than a true rival (The Express Tribune).
Riaz Haq said…
Mega #oil city to be constructed in #Gwadar as part of #CPEC. Plan includes oil terminal and storage tanks, oil #refinery and #petrochemical #industrial complex. #Pakistan #China

https://www.thenews.com.pk/print/271367-mega-oil-city-to-be-constructed-in-gwadar-under-cpec

ISLAMABAD: Pakistan has decided to construct a mega oil city at Gwadar on 80,000 acres under much hyped China Pakistan Economic Corridor (CPEC).

This mega oil city will be used for transportation of imported oil through the Gwadar Port to China. The oil will be imported from Gulf and will be stored at this proposed mega Gwadar oil city.

The distance to China will be reduced, and it will take just seven days to cover the distance from Gwadar to Chinese border as import through western China took almost 40 days by covering double distance.

“We have forwarded PC-1 to the Ministry of Petroleum for acquiring 80,000 acres for this mega oil city at Gwadar with estimated cost of Rs10 billion. There will be additional cost for construction of its storage and other aligned facilities with the help of investments,” Director General, Gwadar Development Authority (GDA), Dr Sajjad H Baloch, told Islamabad based journalists who visited the Gwadar Port last week. This visit was arranged by the Planning Commission in order to show case different ongoing projects under CPEC.

A refinery, petrochemical industries and storage will be established in the oil city, he added.

The Gwadar oil city, he said, would be used for storing oil for its onward transportation to China. Usually, it takes 40 days for vessels to transport oil to China but via Pakistan it will reach China within 7 days, he added. He said that the total area of Gwadar Model City is 290,000 acres which includes 160,000 acres of residential area while the remaining is for industrial purposes. A Chinese company is working on the Model City Plan and it will be ready by August 14, 2018.

To another query regarding different measures for overcoming water shortages at Gwadar, he said that the current water requirement stood at six million gallons per day and there is no direct water supply taking place to the area. Two MGD water is being supplied from two water small dams through tankers and nearest distance is almost 70 kilometres.

“We have a deficit of four million gallons per day in water supply to the area,” he said and added that by 2020, the water requirement of Gwadar would be 12 million gallons per day, for which additional arrangements were made to get 10 million gallons of water.

New Gwadar International Airport: Earlier, the journalists visited the site of proposed new airport at Gwadar. The China Airport Construction Group Engineering Company representative Jianxin Liao told the visiting journalists that they were conducting soil investigation on the basis of which, the design of new airport at Gwadar will be finalised. He said that the procured land for this new airport stood at 4,300 acres, and this airport will possess capacity to handle one million passengers on annual basis. He said that by April this year the design will be completed after which the cost of the project will be estimated. It will be the biggest airport of Pakistan.

The Civil Aviation Authority (CAA) representative Zohaib Soomro said that the initial cost of the project was estimated at $228 million, but its cost would be finalised after completion of design, and it would be estimated again.

The sources said that it would be premature to give any assessment related to cost, but it would be more than $2 billion to $2.7 billion at least if we want to construct state of the art airport in accordance with international standards.
Riaz Haq said…
Pakistan, China Jointly Showcase Arabian Sea Gwadar Port

https://www.voanews.com/a/pakistan-china-jointly-showcase-arabian-sea-gwadar-port/4229612.html

Pakistan and China have jointly organized the first international exhibition to showcase the significance of the Arabian Sea Gwadar Port and its economic free zone as an emerging international business hub.

The warm water deep sea commercial port, which overlooks some of the world’s busiest oil and gas shipping lanes, has been built and recently expanded with Chinese financial assistance.

More than 200 companies from both China and Pakistan were present in Monday’s event at Gwadar, while six Chinese provinces also sent their representatives, said Beijing’s ambassador to Islamabad, Yao Jing, while addressing the ceremony.

Foreign diplomats and business leaders were also invited to the opening session of the two-day event.

Chinese operators of the port say the Gwadar Free Zone shall bring extensive economic benefits, like a tax holiday for 23 years and land lease up to 99 years to the upcoming businesses along with other incentives and pro-business policy frame work for general trade, services, manufacturing, logistics, trans-shipment and bunkering business.

Direct benefit for Pakistan

Gwardar port is to be a trans-shipment hub connected to landlocked western Chinese regions, giving Beijing a secure and shorter international trade route through Pakistan.

Gwadar is celebrated as the gateway to the China-Pakistan Economic Corridor, or CPEC, a flagship of President Xi Jinping’s global Belt and Road Initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

Under CPEC, networks of road, communications, rail, economic zones and power plants are being built and upgraded in Pakistan with an estimated Chinese investment of $62 billion.

Around $27 billion in projects are underway or completed, including “early harvest” energy projects, adding much-needed electricity to Pakistan’s national grid.

“I would like to say that the Chinese government will continue to invest and send our input to further support the development of this project. Also, we will encourage Chinese companies and Chinese businessmen to join the development of Gwadar,” vowed Chinese envoy Jing.

Wider benefit planned

During the ceremony, Pakistani Prime Minister Shahid Khaqan Abbasi said CPEC is the “most visible part” of China’s of BRI, saying the mega project will cater not only to the needs of his country, but to the needs of the region.

Officials expect Gwadar’s cargo handling capacity to increase to 1.2 million tonnes by the end of this year and it will be able to process about 13 million tons by 2022, making it the largest port in South Asia.

Chinese partners say they would need around 38,000 skilled workers by 2023 for the Free Zone, according to Dostain Jamaldini, Chairman of the Gwadar Port Authority. He says of the 2,500 current workers, around 500 are Chinese nationals and the rest are locals.

An international airport with a 12,000 meter runway is being constructed in the once sleepy town with a Chinese financial grant of around $300 million.

The Arabian Sea port is located in Pakistan’s largest province of Baluchistan where militant groups, including Islamic State, and a low-level insurgency remain key security challenges to CPEC.

Additionally, the corridor runs through Pakistan-controlled portion of the divided Kashmir region, drawing objections from rival India. The United States suspects China may also turn Gwadar into a military base.

But Chinese officials reject those concerns, maintaining “CPEC is merely an economic cooperation project,” and Islamabad dismisses New Delhi’s opposition as politically motivated.

Riaz Haq said…
#Pakistan’s port city gains economic vitality after free zone launched. Will #Gwadar be next #Honkong or #Dubai? #CPEC #China #SEZ http://www.hellenicshippingnews.com/pakistans-port-city-gains-economic-vitality-after-free-zone-launched/ …

For decades, Pakistanis have dreamed for Gwadar to become the next Dubai. Yet the port city in southwestern Pakistan, despite its advantageous location on the shores of the Arabian Sea, had long remained underdeveloped in the past.

Recently, the economy of the prominent city in the China-Pakistan Economic Corridor (CPEC) plan seems to gear up, especially with the launching of the Gwadar free trade zone on Jan. 29, reviving hopes for it to become a global trade hub.

Launching of the free trade zone was a historic moment. It is the beginning of a dream coming true, Ahsan Iqbal, Pakistani Minister for Interior and Minister for Planning, Development and Reforms, said at the launching ceremony.

RAPID PORT DEVELOPMENT

Less than a year ago, the Gwadar port complex was still a giant construction site. Now it has become a brand new modern harbor boasting giant brand new cranes, hotels, warehouses, factories and a business center.

The unprecedented pace of development convinced locals of the future of Gwadar.

“Gwadar will lead the take-off of Pakistan’s economy. It will be the next Dubai or Hong Kong,” local banker Masood Awan said.

Gwadar Expo, a two-day trade fair, coincided with the opening of the free trade zone. Muhammad Niazi, a seafood exporter, had planned to represent his company at the event, but failed to get a booth as more than 5,000 companies had vied for just 150 vacancies.

More than 25,000 people visited the trade fair, according to China Overseas Ports Holdings Co. (COPHC), which took over the operation of the port in 2013.

Pakistan International Airlines (PIA) had to increase the frequency of its flights from Karachi to Gwadar from one to two per day, while announcing that a new flight from Pakistan’s capital Islamabad to Gwadar will be open by the end of the year.

Even without a booth, Niazi and his colleagues flew to Gwadar from Pakistan’s largest city of Karachi. He stayed after the trade fair closed on Jan. 30, busy making new business contacts.

“We are determined to expand our business to Gwadar. The speed of development is just amazing,” Niazi said.

BETTER CITY LIFE

More than 30 Chinese and Pakistani companies are investing some 500 million U.S. dollars in the free trade zone, said Hu Zongyao, deputy general manager of the Gwadar free trade zone, which is expected to bring thousands of jobs to the fishing city of less than 100,000 population.

Also, COPHC have worked with the local government and Chinese organizations to help improve living conditions in Gwadar, including the installation of desalination facilities to provide a million gallons of drinking water to local residents.

China’s Red Cross Society helped build a medical station, while China Foundation for Peace and Development help set up a primary school there.

“Better living conditions means better investment environment and more talents. Helping the locals is also helping ourselves,” Hu said.

“Investment by experienced and competent Chinese companies is encouraging for the future of Gwadar. The port will one day become a top destination for business and tourism, a regional, even global trade center,” said Dostain Khan Jamaldini, chairman of Gwadar Port Authority.

The construction of the city is a long-haul endeavor. It takes time to build infrastructure, find investment and talents and cultivate economic vitality. Eventually the city will grow as evidenced by many global cosmopolitans that had been fishing villages.


Wade Shepard, a Forbes contributor, believed a “clearly stated plan” is behind CPEC’s progress. China and Pakistan publicized a long-term plan for CPEC in 2017.
Riaz Haq said…
#India’s secret war against #Pakistan. by Praveen Swami #KulbhushanJadhav #Balochistan #RAW #ajitdoval

http://www.frontline.in/the-nation/indias-secret-war/article10055129.ece

he implications of the questions raised by the Kulbhushan Jadhav case go far beyond Jadhav’s fate. It is time India reflects seriously on its expanding programme of covert action and its long-term consequences. By PRAVEEN SWAMI
FOR six hours, the hired car had driven through a forest of shadows, cast by the mountains of Iran’s Sistan-Baluchistan province—for generations, a refuge for smugglers, insurgents and spies. Heading towards Saravan, a town of 50,000 some 20 kilometres from the border with Pakistan, the car was carrying a businessman from Mumbai to a meeting. The men he wanted to meet were waiting, but there were others, too: like every spy story, this one ended in betrayal.

India knows something of what happened next: Kulbhushan Jadhav is now on death row, awaiting execution, after a hurried trial by a military court in Pakistan which found him guilty of espionage.

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Ever since 2013, India has secretly built up a covert action programme against Pakistan, seeking to retaliate against jehadists and deter their sponsors in the Inter-Services Intelligence (ISI) Directorate. Led by National Security Adviser Ajit Doval, and now by Research and Analysis Wing’s (RAW) Anil Dhasmana, the programme has registered unprecedented success, hitting hard against organisations such as the Lashkar-e-Taiba and the Jaish-e-Muhammad. But the story of the man on death row illustrates that this secret war is not risk-free. Lapses in tradecraft and judgment, inevitable parts of any human enterprise, can inflict harm far greater than the good they seek to secure.


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the Kulbhushan Jadhav case ought to raise questions about whether India’s intelligence bosses are devoting the kind of granular attention that the issue requires to insulate the country from the potential risks. The questions over Jadhav’s passports, the opacity of his business operations and, most important, the lack of transparency about his connection to the Indian Navy, have all made it difficult for the government of India to dissociate itself from his cause—the usual, necessary fate of the spy. It is also not clear why, if he is indeed a spy, he was not withdrawn after Uzair Baluch’s arrest, an elementary precaution.

Perhaps more importantly, there ought to be a serious political debate cutting across party lines on the possible consequences of covert action.

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Precedents do exist to resolve situations like this. Gary Powers, the pilot of a CIA espionage flight shot down over the Soviet Union in May 1960—and reviled by his colleagues for not committing suicide—was eventually exchanged for the legendary KGB spy Vilyam Genrikhovich Fisher.

In both New Delhi and Islamabad, there are rumours the two capitals are working on just such a deal—possibly involving former ISI officer Lieutenant Colonel Mohammad Zahir Habib, alleged to have been kidnapped by India—or a wider deal, which could see the release of multiple espionage convicts.

Both countries have much to gain from a dispassionate conversation on the case—on the norms that ought to govern covert activity of the one against the other, and on the inexorable consequences of the secret war Pakistan has long run.

For that, the Kulbhushan Jadhav case needs to be elevated above prime-time ranting and opened up for rational discussion.
Riaz Haq said…
Chinese giant to build Gwadar’s first luxury Golf Community

https://www.thenews.com.pk/latest/307352-chinese-giant-to-build-gwadars-first-luxury-golf-community

State-owned Chinese construction company China Civil Engineering Construction Corporation (CCECC) has announced that it has entered into agreement for the construction of Gwadar's first luxury gated Golf Community with a Pakistani company.

Empire Properties, the Pakistan registered company, and the CCECC have signed a memorandum of understanding as the prospective contractor for the construction of China Pak Golf Estates, Gwadar's first luxury Golf Community.

The $265 million development is a milestone in the development of Gwadar and will deliver the emerging port city’s most premier residential and lifestyle destination, said a joint press release issued here.

Commenting on the partnership Mr Wang Lei, Managing Director CCECC (Pakistan) said: "It is a great honour to be working alongside a forward thinking international conglomerate like CPIC. China Pak Golf Estates is a ground breaking development for not only Gwadar but Pakistan and we are honoured to be a part of this monumental project and contributing to the growth story of Emerging Pakistan. CCECC are a leading global contractor with 39 years of experience in over 40 countries delivering high quality projects ranging from civil engineering design and consultancy to real estate development. We aim to deliver a timeless community in China Pak Golf Estates that will set a new standard to master community development in Pakistan."

Afzal Shah, CEO or Empire Properties said: "China Pak Golf Estates will truly set a new standard to real estate community development in Pakistan and there isn't a better company we could be working with to deliver this grand vision than CCECC. I would like to extend a warm welcome to Mr Wang Lei and his team as we embark on this virtuous journey together. Our vision extends beyond developing Pakistan's finest communities, we will change the fabric of Pakistan's real estate industry by setting a new benchmark for integrity and transparency in a market that at times can be described as less than open. Our goal is to elevate the market to the same standards as established international markets. This will result in the introduction of institutional investment which in turn will revolutionise the country’s real estate sector and deliver the quality of life Pakistanis deserve".
Riaz Haq said…
#Chinese investment in #Pakistan’s #infrastructure driving country’s real estate growth. Foreign investors are pouring more capital into Pakistani #RealEstate as Chinese infrastructure investment improves the country’s accessibility. #CPEC #fdi #China

https://www.worldfinance.com/featured/chinese-investment-in-pakistans-infrastructure-driving-countrys-real-estate-growth

Rather than investing in the centre of densely populated cities like Karachi, foreign investors are tending to create urban clusters in more peripheral locations

The Pakistani property market has experienced growing interest in recent years, largely due to close international ties between China and Pakistan. In 2013, Chinese President Xi Jinping announced the China-Pakistan Economic Corridor (CPEC), a $62bn project to develop Pakistani infrastructure and energy. With better access to cities across Pakistan, investors are seeing more opportunities to build on the land near these new developments. CPEC projects include the $2.8bn Peshawar-Karachi Motorway, set to open in August 2019, and the East Bay Expressway in Gwadar Port in the south, which is due to be completed later this year. Both will dramatically help to facilitate real estate developments on previously barren land.

Rather than building in megacities like Karachi, investors are taking their money to more peripheral locations in order to create urban clusters on formerly agricultural ground, a move that is known as ‘peri-urbanisation’. “The landscape has visibly changed with the proliferation of housing societies and gated housing enclaves moving along highways towards secondary cities,” according to Anjum Altaf of the Lahore University of Management Sciences. As a consequence, investment in residential property increased from five to seven percent between 2015 and 2016.

Luxury appetites
Pakistan’s growing middle class is a major driving force in the rising popularity of these gated housing communities. Luxury development projects, carried out by companies like Bahria Town, DHA City and the Fazaia Housing Scheme, for instance, are some of the most sought after – by those who can afford them.

The rising number of luxury developments, however, is not solving the housing gap currently bedevilling Pakistan. With a population of almost 200 million people, Pakistan is suffering a shortage of 12 million houses. Karachi, with its behemothian population of 16.6 million, has an annual shortage of 300,000 houses. “It’s not about the catering to actual demand or housing shortages. It’s much more about the tastes of richer Pakistanis,” Aisha Ahmad, a research student from the University of Oxford, told World Finance.

Lucrative real estate
Real estate has become an attractive option for investors: numerous housing schemes are launched with the promise of 10 to 40 percent returns. Meanwhile, FDI has also been made easier as a result of measures introduced by the government in 2013. These include a new open entry system, which waivers pre-screening and government permission for investment into real estate. Furthermore, investors are no longer limited on the transfer of ownership or entitlement to lease land unless they breach federal or
provincial regulations.

These measures have encouraged foreign investors, and Pakistani expats in particular, to pour money into the housing sector. At present, much of this FDI comes from Egypt. Serving as an example of this is a new $2bn real estate development just outside Islamabad – the first of its kind from Egyptian billionaire Naguib Sawiris. Once finished, the complex will cater to every need of its occupants, providing everything from luxury housing units and schools to hospitals. “That’s what every Pakistani housing scheme coming from FDI looks like. They all tout the same thing: the American dream for Pakistani citizens,” Ahmad explained.
Riaz Haq said…
$5 Billion Investment to Boost Pakistan Real Estate, as Major Developers Participate at the Dream Home Expo

https://www.albawaba.com/business/pr/5-billion-investment-boost-pakistan-real-estate-major-developers-participate-dream-home-

UAE-based BMS International Commercial Investment LLC, one of the Royal Group Companies of Sheikh Saeed Bin Khalifa Al Nahyan, has shown interest in investing $3 billion in different economic sectors of Pakistan, with a focus on real estate.


Louai Mohammed Ali, chairman of BMS International Commercial Investment, made the commitment to invest in Pakistan’s real estate development, agriculture and fisheries, energy, hospitality and leisure, healthcare and education sectors.

In December 2017, Egyptian tycoon Naguib Sawiris of Ora Developers and Pakistan’s Saif Group announced investing over $2 billion in real estate ventures in Islamabad.

Pakistan’s near-term outlook for economic growth is broadly favourable, the International Monetary Fund (IMF), said in a recent statement.

“Real GDP is expected to grow by 5.6 percent in FY 2017/18, supported by improved power supply, investment related to the China-Pakistan Economic Corridor (CPEC), strong consumption growth, and ongoing recovery in agriculture. Inflation has remained contained,” the IMF said in a statement in March 2018.

Total Foreign direct investment (FDI) into Pakistan surged 68.9 per cent to $4.45 billion in the nine months of FY2018, according to the central bank data.

With a population of almost 208 million people, Pakistan is suffering a shortage of 12 million houses, said a latest report. Karachi, with its behemothian population of 16.6 million, has an annual shortage of 300,000 houses.

Pakistan’s growing economy supported by its investment sector has remained instrumental to the country’s economic growth over the last five years. With a spend of about $5.2 billion on real estate construction backed up by price correction of up to 20 percent and major advancements in the overall industry dynamics, the property market has enabled strong returns among investors compared to other investment avenues.

Likewise, recent studies have indicated a significant move in the local real estate market of Pakistan towards overseas investment, being identified as one of the largest investors in the International Property Market. Pakistan’s property buyers have increasingly secured homes and investment in Europe, GCC, Canada and UK.

Global real estate transaction value reached $698 billion in 2017, 6 percent above the total transacted in 2016, according to Jones Lang LaSalle, a global real estate advisory. Pakistani investors represented a good chunk of this.

Pakistani nationals have invested Dh24.98 billion in Dubai’s real estate through 19,955 transactions in the last four years (2014-2017), according to Dubai Land Department (DLD) making them the third largest non-Arab investor group by nationality.

DOME Exhibitions in collaboration with Pakistan’s leading media house Jang Media Group is back this year to bring the International Real Estate Investment opportunities in the heart of Pakistan with its much-awaited participation at the Dream Home Expo, Pakistan’s leading property and investment exhibition.

“Pakistanis and Non-Resident Pakistanis (NRP) alike have increasingly been investing within Pakistan and in international markets. Such investors have made their mark in countries across the world, acquiring not just investments but also citizenship opportunities through various investment programs,” said Antoine Georges, Managing Director of DOME Exhibitions, International Pavilion organizer of the exhibition.
Riaz Haq said…
#Pakistan’s #Gwadar International #Airport will be the largest in the country. Spread over an area of 4,300 acres, it will be able to land Airbus #A380, the biggest wide-body passenger #aircraft. #Balochistan #China #CPEC http://bit.ly/2YF8a4k

The construction of the airport will be completed within three years at the cost of US$256million.

Unlike other projects under the China-Pakistan Economic Corridor (CPEC) are operating under concessional loans, the Airport is planned under a Chinese grant.

The airport will also be the biggest in Pakistan at an area of 4,300 acres.

It will be the biggest airport of Pakistan. In comparison to other airports like Karachi Airport (3,700 acres), Islamabad International Airport (3,600 acres), Lahore Airport (2,800 acres), the Gwadar Airport will be built on 4,300 acres.


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The airport is one of several development projects in Gwadar worth $690 million which the Chinese government is financing as part of its Belt and Road Initiative.

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The project is part of overall infrastructure development of Balochistan. It would be developed as a green-field facility with all modern facilities for safe operation.

The project would comprise a modern terminal building with cargo terminal having initial handling capacity of 30,000 tons per year.

On this occasion, a memorandum of understanding (MoU) was signed for construction of Pakistan and China Vocational Training Institute and Pak-China Friendship Hospital.

Prime Minister Imran thanked the Chinese Ambassador for the grant given by the Chinese government for the airport.

Benefits to local people
He categorically said any development would be of no use unless it benefited the local people.

He said in the past, the locals were ignored while executing the development projects in Balochistan. He said gas worth billions of rupees was extracted from Sui but it could not change the living standard of the local people.

He said it was pleasing that the capacity of the hospital in Gwadar would be enhanced and a vocational training institute would also help create employment opportunities.

Prime Minister Imran announced to launch Insaf Sehat Card (health card) to provide health insurance cover worth Rs720,000 to every family.

He said previously power was being transmitted from Iran, but now the government had decided to link the area with national grid.

Desalination plant
A desalination plant would also be set up in the city and under Clean and Green Pakistan, one million saplings would be planted. Besides, a solid waste management system would also be established to protect the area from pollution.

He said following the models of Dubai, Abu Dhabi and Sharjah, the government had decided to recycle water in Gwadar to water the plants.

He told the gathering that Gwadar and Quetta would be linked through railways as it was the best travel mode but unfortunately Pakistan had been lagging behind in this sector.

Rail links
He said Chinese support was being sought to upgrade railway lines as China had the most advanced rail system. A high-speed rail link would cut travel time bewteen Karachi and Lahore to within four hours, instead of 18 hours by car, or 21 hours by bus at the moment.

Khan said having located at an ideal location and being well connected, Gwadar’s development would be the development of whole of Pakistan.

During the development process of the new airport, the existing airport’s capacity would also be enhanced by making it capable of transporting big aircrafts.

With the establishment of new international airport, the Gwadar city would become hub of aviation industry and it would also help elevating the CPEC framework.
Riaz Haq said…
#Balochistan’s #CPEC potential. #Industrial zones are planned for #Quetta, #Gwadar, Khuzdar, Uthal, Hub and Dera Murad Jamali as well as #mineral processing zone for extraction of #copper, #gold. Gwadar port city will rival #Dubai. #Pakistan https://dailytimes.com.pk/375458/balochistans-cpec-potential/


So how will CPEC benefit Pakistan and Balochistan? The answer is simple: through development. The deep sea port holds great trade potential. The infrastructure development will prove a great boost to trade and economy. Infrastructure developments will also open new and better markets. Resultantly, more investors would be attracted. The investment they bring will lead to the creation of more job opportunities. The living standards will improve gradually, but surely.


The road and rail network will help improve efficient movement of goods making the trade more efficient. Besides the road and rail network, three major energy projects are planned in the province, namely, Gwadar Coal Power Project, HUBCO Coal Power Plant and Gadani Power Park Project. These projects will contribute approximately 2,940 MW of energy to the national grid.

Most importantly, Gwadar is going to be the anchor and key driver of this mighty collaboration between China and Pakistan. It is hoped that Gwadar, having one of the world’s deepest sea ports, will become another Dubai by the time the project gets into its final stages. Balochistan is thus going to be a bridge between Asia on one side and the West on the other. The city itself will see massive modernization. Theses project will bring the federation and the province closer to each other.
Riaz Haq said…
Pakistan seafood exports to China rise: Chinese fishing company


https://www.thenews.com.pk/latest/478386-pakistani-seafood-exports-to-china-rise-chinese-fishing-company

The exports of Pakistani seafood from Gwadar to Chinese cities through Urumqi, China’s Xinjiang autonomous region has increased manifold owing to robust demand, Chen Baoliang, chairman of the board of Xinjiang Yu-Fei International Fishing Company said on Thursday.

Yu-Fei Marine Technology of China (Gwadar) Company is one of the largest fishing companies in the Gwadar port of Pakistan, according to China.org.cn.


"Since the company was established in 2017, we have been exporting an increasing quantity of seafood back to China," said Chen.

In the last two years, Yu-Fei imported 1,000 tonnes of seafood and sold them to cities in the Chinese mainland.

Now it takes 34 hours for lobsters and groupers from Pakistan to arrive in Xinjiang through air transport, instead of 25 days.

"When I visited Gwadar in 2016, I found that it had high-quality seafood but lacked proper facilities to process them," Chen said.

He invested 500 million yuan (about 73 million U.S.dollars) to build fishing, processing, refrigerated warehouses and established one of the largest seafood processing centers in Gwadar.

Yu-Fei is among a growing list of companies that bank on robust domestic demand in China to import seafood from Gwadar and sell to customers in Urumqi and Karamay, both in Xinjiang, and other cities including Beijing, Shanghai, and Shenzhen.

"As commercial relations expand, we will be able to create hundreds of more jobs for local Pakistanis and raise the income for local fishers," Chen said.

Riaz Haq said…
Pakistan breaks ground on Gwadar Airport project

https://www.airport-technology.com/news/gwadar-airport-project/

The proposed airport, which is being funded by China, will cover an area of 4,300 acres. It will be capable of accommodating narrow-body aircraft, as well as big aircraft such as the Airbus A380.

The airport is one of numerous projects in Gwadar being financed by the Chinese government as part of its Belt and Road Initiative.

In order to finance the airport, a grant agreement between Chain and Pakistan was signed in May 2017.

“The projects in Gwadar are conducted under a framework agreement with NDRC and a MoU with MOFCOM and the Exim Bank. Unlike many of the other China Pakistan Economic Corridor (CPEC) projects in Gwadar, the New Gwadar International Airport is not financed by a loan from China but through a Chinese grant,” cpecinfo.com said in a statement.

Scheduled to become operational over the next three year, the new airport will be developed under the guidance of the Civil Aviation Authority (CAA).

Once commissioned, it will become the second largest airport in Pakistan.

Pakistan believes that the new international airport, which will operate under the open skies policy, will help Gwadar to emerge as a regional economic hub.

The soil testing on the land, which started in January last year, has been completed through 300 boreholes made on various locations.

The aviation authorities have already approved the design and work plan for the airport.

Riaz Haq said…
'Inspired by #NewYork's Central Park': the new city for a million outside #Pakistan's biggest city #Karachi is a huge gated community with its roads fringed with neatly trimmed hedges, palm trees and lush green grass, it is called #BahriaTown https://www.theguardian.com/cities/2019/jul/08/inspired-by-central-park-the-new-city-for-a-million-outside-karachi?CMP=share_btn_tw


The economic heart of Pakistan is an overcrowded and often violent megacity with an official population of 15 million (closer to 20 million if the urban sprawl beyond the city perimeter is included). Infrastructure has not kept pace with its rapid expansion, and basic amenities such as water have become a commodity for criminal gangs. The city is also an organisational centre for the Pakistani Taliban, who attacked the airport in 2014.

Bahria Town expands over Karachi’s eastern periphery, and offers residents a way to buy their way out of proximity to criminal gangs and terrorists, hectic traffic and power cuts. The wildly ambitious housing development is the brainchild of the property mogul Malik Riaz, one of the 10 wealthiest people in Pakistan and a close associate of the country’s former president Asif Ali Zardari.

The new city promises to “turn the vision of modern Pakistan into a reality”, with private and secure supplies of water, gas and electricity, as well as privately maintained roads. The developer, also called Bahria Town, says it is Asia’s largest private real estate company, employing 25,000 people. It has already built smaller planned communities outside Lahore and Islamabad, but the 45,000-acre Karachi project is on a different scale.

Once complete it will accommodate 1 million people, and is already home to a zoo, an 18-hole golf course and a theme park featuring fairground rides. The site is dotted with scaled-down imitations of world attractions such as the Parthenon and the Eiffel Tower. Smooth tarmac streets lined with palm trees and uniform villas eventually peter out into rocky construction sites, and unfinished properties dot the sides of the road. Construction has begun on a mosque complex that will be the third largest in the world.

Bahria Town’s website offers Karachiites who can afford it the chance to live “amidst soft grass and pure class”, advertising its luxury villas as “Pakistan’s first lifestyle community developed around a huge green area inspired by Central Park, New York, with a replica of Taj Mahal”. The residences on offer range from apartments to standalone villas to luxury farmhouses, at a range of prices targeted not just at Pakistan’s elite but at the middle classes too.

It makes sense to buy here because it looks like the future
Asif Munir, prospective buyer
Although the vast development is only part-built, more than half of the plots are reportedly sold. Some sections are already inhabited, and facilities including a large modern hospital, the theme park and Pizza Hut and Burger King restaurants are already open.

For many Pakistanis, the modern convenience offered by Bahria Town is an attractive proposition. “Since before my son was born, I have been saving to one day buy him a residence for his own family – and now it makes sense to buy here because it looks like the future,” says Asif Munir, a small-business owner from Karachi who is considering purchasing a plot. “The cost of the apartment includes not just reliable water and light but safety because it is far away from criminal gangs.”

But the development has been mired in controversy since its inception in 2014, most notably over allegations of illegal land appropriation. In May last year the supreme court ruled that much of the land had been illegally procured. In December, it ordered a halt on all construction. As the case works its way through court alongside a simultaneous case in the National Accountability Bureau anti-corruption court, villagers who have lived in this area for centuries are feeling the impact.
Riaz Haq said…
Pakistan, China sign deal for two mega residential projects in Gwadar

https://www.geo.tv/latest/217833-pakistan-china-sign-deal-for-two-mega-residential-projects-in-gwadar

ISLAMABAD: The China Pakistan Investment Corporation (CPIC) has signed a construction agreement with China’s state-owned mega construction conglomerate, BIDR to materialise Gwadar’s two mega residential and commercial projects.

The agreement was signed by CPIC Global Founding Board member Syed Zeeshaan Shah and BIDR Deputy Director and Chief Design Engineer Liu Bochun at a ceremony in Islamabad.

The agreement covers CPIC’s mega projects in Gwadar spread across 10 million square feet of prime residential and commercial real estate outfits, the International Port City and China Pak Golf Estates – the two approved projects by Gwadar Development Authority (GDA).

CPIC Global is the world’s first China Pakistan Economic Corridor (CPEC) -centric real estate developer with current under-development projects worth in excess of $500 million.

Speaking on the occasion, Shah said: “This is a momentous occasion for us. We are setting a new standard for community development in Pakistan and working with a global leader like BIDR will enable us to deliver our projects on time and on budget.”

On the current on-ground situation in Gwadar, Shah said the progress over the last 12 months in Gwadar has been phenomenal.

“The port and economic free zone are both fully operational now and 30 companies from Pakistan and China have committed to investing almost $500 million to develop their industries there. The dream of a Gwadar becoming a key economic hub of Asia is not far away now,” he added.

On the subject of Prime Minister Imran Khan’s recent visit to China, Shah said that the Chinese have invested in Pakistan at a time when others snubbed it. “China and Pakistan are all-weather friends and China reiterated this by committing to help Pakistan with the balance of payment situation.”

He added, “The trip was particularly encouraging for Gwadar with both sides reiterating the significance of Gwadar as the central pillar of CPEC and agreeing to further expedite development of the port and its auxiliary projects.”
Riaz Haq said…
China’s CPEC Is Leading To Hot Real Estate In Pakistan’s Special Economic Zones

https://www.valuewalk.com/2019/07/pakistan-special-economic-zones/

According to Beijing, the provision of such extraordinary facilities aim to provide these countries; including Kazakhstan, Ethiopia, Armenia, Siri Lanka, Jamaica, Nigeria, Sudan, Malaysia, and Pakistan (which occupies the center stage for CPEC’s execution), with a coherent and productive real estate, energy, agricultural, and business infrastructure.

With massive infrastructural developments underway, the economic corridor project has already supplemented real estate demand in Pakistan. And investors in the country foresee a continual expansion of road and rail network, development of special economic zones, as well as power projects under the CPEC umbrella.

Similarly, real estate agents have become more optimistic about the speculative value of land in Gwadar and other parts of the country. Moreover, numerous local property portals have recorded an increase in property demand across the country in recent years – a trend which serves to highlight the positive impact of the CPEC initiative on Pakistan’s property market.

Facilitating the creation of an efficient infrastructure

Both the countries have pledged to pursue multiple energy and infrastructure projects on a joint venture basis. To help solve the energy crisis in Pakistan, China is working on 21 power plants and hydropower projects, some of which include:

1,320MW fuel power plant in Rahim Yar Khan, Punjab
1,320MW coal-fired power plant in Hub, Balochistan
2x660MW coal-fired power plant in Sahiwal, Punjab
2x660MW coal-fired power plant at Port Qasim in Karachi, Sindh
Kohala Hydel Project in Kohala, Azad Jammu & Kashmir
Suki Kinari Hydropower Station in Naran, Khyber Pakhtunkhwa
Moreover, China is becoming increasingly involved in the construction of a state-of-the-art network of roads in Pakistan to facilitate the good transport activities. Many of these projects were recently completed and inaugurated, including:

Karakoram Highway Phase II
Peshawar-Karachi Motorway
Expansion and restoration of Pakistan Railways’ Mainline-1
Upgradation of Dera Ismail Khan–Zhob Road
Quetta Mass Transit
Greater Peshawar Region Mass Transit
Karachi Circular Railway
Orange Line Metro Train - Lahore
Similarly, the projects planned exclusively for Gwadar include:

New Gwadar International Airport
Free Zones
Gwadar East-Bay Expressway
Gwadar University
Pak-China Friendship Hospital
Technical and vocational institutes
While the plans on development of special economic zones in the country are also extensive:

Special Economic Zone in Mirpur, Azad Jammu & Kashmir
Marble City in Mohmand, Khyber Pakhtunkhwa
Special Economic Zone in Moqpondass, Gilgit-Baltistan
ICT Model Industrial Zone, Islamabad
Allama Iqbal Industrial City in Faisalabad, Punjab
China Special Economic Zone in Dhabeji, Sindh
Rashakai Economic Zone in Nowshera, Khyber Pakhtunkhwa
By providing an efficient infrastructure, China aims to create an enabling environment for global trade connectivity. But, these ambitious plans have also invited scepticism from several countries, with the US particularly critical of Beijing’s ‘debt diplomacy’.

As per a BBC report, China has repeatedly tried to address the concerns and criticism surrounding its OBOR project; saying that the sweeping infrastructure initiative doesn’t contain an agenda for geostrategic supremacy; rather it focuses on efforts to develop a global community with a shared future for mankind.

Riaz Haq said…
#China firm builds $250m industrial park in #Gwadar. It's an essential component of Gwadar Port development project under #CPEC. The free zone aims to improve #trade logistics, facilitate processing trade, and promote warehousing and financial services
https://nation.com.pk/15-Jul-2019/china-firm-builds-250m-industrial-park-in-gwadar

The China Overseas Ports Holding Ltd has invested nearly US $ 250 million and built a 25-acre modern industrial park in Gwadar port free zone.

The free zone is equipped with roads, water pipes, electricity, communications, security fence and waste disposal facilities, according to a report of China.org.cn here on Sunday. More than 30 Chinese and Pakistani enterprises have moved in the free zone, with three billion yuan of direct investment.

These include hotel, bank, insurance, financial leasing, logistics, overseas warehousing, grain and oil processing, aquatic product processing, and home appliances assembly. Their yearly output value will exceed five billion yuan once they all come into operation.

Both China and Pakistan agreed to build the China-Pakistan Economic Corridor (CPEC) during Premier Li Keqiang’s visit to Pakistan in May 2013 to promote energy and transportation infrastructure development, among other projects. During President Xi Jinping’s visit in April 2015, a closer bilateral cooperation was again highlighted.

A key element of the China-Pakistan Economic Corridor and an essential component of the Gwadar Port development project, the free zone aims to improve trade logistics, facilitate processing trade, and promote warehousing and financial services.
Riaz Haq said…
CM Balochistan inaugurates flagship housing project in Gwadar
By Manzoor Magsi

https://tribune.com.pk/story/2043166/1-cm-balochistan-inaugurates-flagship-housing-project-gwadar/

Gwadar-3, also known as G-3, is envisioned to be a symbol of Gwadar’s emergence as a regional trade and economic powerhouse.

Set to redefine Gwadar’s skyline forever, this flagship project will be situated on top of the majestic Koh-e-Batil hill with uninhibited three-sided ocean views of the magnificent Arabian Sea.

Moreover, its strategic location at the heart of Sangar Housing, adjacent to Gwadar deep seaport, makes it the finest and most prestigious address in Gwadar, and ultimately in Pakistan.

Eiwan Developments has partnered with Balochistan Energy Department to usher in a new era of development to the city, through the launch of its prestigious development project, G-3, making it an energy-efficient development.

A groundbreaking ceremony for the prestigious project was held during the Gwadar visit of Chief Minister Jam Kamal last week. The ceremony was also attended by Chief Secretary Dr Akhtar Nazeer and Secretary Energy Department Pasand Khan Buledi and other notable dignitaries.

The chief minister planted a tree at the project site to commemorate the green beginnings of the project, which is part of the Chief Minister’s initiative of contributing to environmental preservation. Eiwan Developments also contributed 2,000 plants.

Speaking on the occasion, Jam Kamal said the project marks the beginning of a new golden chapter in the development of Gwadar and Balochistan. He said the development of this region has been a key priority for his government, and it has been working tirelessly to make it happen.

“It gives me great pleasure today, to unveil this iconic state-of-the-art development project which will not only usher in a new era of growth and prosperity for the region, but it will most definitely help redefine the urban landscape of Pakistan.

“It is a testament to the progressive vision we share for this region under the China Pakistan Economic Corridor (CPEC) project and I congratulate everyone involved in this great achievement,” he said.

Speaking on the occasion, Balochistan Energy Company Limited CEO Pasand Khan Buledi said this is truly Pakistan’s first-ever smart development project.

“We are extremely proud to be associated with this infrastructure marvel which shall surely become a benchmark in environmental sustainability, within the country and outside. We are deliberately working on encouraging environmentally responsible and sustainable developments in this region,” he added

Eiwan Developments CEO Muhammad Faiz Kidwai highlighted the unique attributes of the project in his presentation. “It was a challenge for us to design something which would do justice to Gwadar’s future potential and prospects as the crown jewel of CPEC.”

He said Eiwan has announced the launching of a business Incubator center in Gwadar for the benefit of the youth of Gwadar. CM appreciated the contribution of Eiwan for the locals of Gwadar.

A step towards the future of living, this state-of-the-art mixed commercial development is designed to be Pakistan’s first smart development. The development will use a host of smart technologies, including bioclimatic architecture, eco-friendly construction, alternate green energy provision, automated building management systems, waste treatment, and other environment-friendly features.

These technologies will help minimise the overall carbon footprint of the development, ensuring longer-term sustainability and providing a clean, green environment to its inhabitants and surroundings. The project is duly endorsed by Balochistan Energy Company Limited.

Riaz Haq said…
Tax holiday brings #Pakistan #Gwadar Port at par with Duty Free #Dubai, #Singapore. After new tax exemptions, raw materials can be imported into Gwadar duty-free
Experts say Gwadar will have edge over other regional free ports due to lower #labor costs
https://www.arabnews.com/node/1548496#.XW9EEo-Z7tM.twitter

As Pakistan moves to declare its deep-sea port of Gwadar a duty-free zone along the lines of the Dubai and Singapore models, officials and shipping gurus rule out any direct competition with regional free ports, but say those setting up industries will have most to gain from the tax exemption.
For well over a decade, Pakistan’s government has dreamed of transforming the small, strategically located fishing port of Gwadar in southwestern Balochistan province into Pakistan’s Dubai, with a duty-free port and free economic zone.
“The exemption will be exactly on the paradigm of Dubai free port or Singapore,” Mahmood Moulvi, adviser to the maritime affairs ministry, told Arab News.
Finally, on Wednesday, the government body responsible for finalizing executive economic decisions, the Economic Coordination Committee (ECC), approved a proposal for amendments to various laws that would provide exemptions from income tax, sales tax and custom duties to the Gwadar port for 20 years- until 2039.
The proposal was submitted by Pakistan’s Ministry of Maritime Affairs and sought changes in the country’s tax laws in line with the concession agreement between the Gwadar Port Authority and China Overseas Ports Holding Company Pakistan.
“Those who will set up industries in Gwadar will have the major advantage,” he said.
The ECC now seeks legal cover for the amendments, and has asked Pakistan’s law ministry for a legal way out.
The aim is for Gwadar – located on the Arabian Sea near Iran and the mouth of the Arabian Gulf – to become a regional commercial, industrial and shipping hub, as part of the ambitious $61 billion China Pakistan Economic Corridor (CPEC) project.
Officials now hope that business activities in Gwadar will pick up from next year.
“The extent of growth will be gauged when operations start,” Moulvi said, and added, “Growth momentum will pick up after the current economic slowdown, which is a global phenomena.”
As it currently stands, a one-time import of duty-free machinery is allowed into the port, but after the newly approved tax exemptions, raw material can also be imported free of tax.
“As long as they are not selling in Pakistan, it is a good idea,” Aasim Siddiqui, Chairman of the All Pakistan Shipping Association told Arab News.
“The intention of the current government is to allow raw material free of duty...on the style of Dubai’s free port. In the Gwadar Free Zone, there will be no tax on processing,” he said.
Siddiqui, who is also a member of Pakistan’s Board of Investment, said the move would lure investment and create jobs in Pakistan’s Special Economic Zones (SEZ’s) which currently suffer from low investment.
On Saturday, Pakistan and China agreed to fast-track the pace of their industrial cooperation under the CPEC by utilising Chinese experience to ensure the speedy development of SEZs in the country.
“If duty and taxes (in SEZs) are the same as everywhere else in Pakistan, then why would someone invest in the SEZs?” he said.
So far however, the Dubai-Gwadar comparison was far too premature, Siddiqui said, with Gwadar’s current infrastructure barely supportive of “a single factory.”
But if the Pakistani port was developed as a manufacturing base, he added, Gwadar would have an important advantage over other regional free ports: cheap and available labor.
“If you want to set up manufacturing industry in Pakistan, you will have labor availability here because Pakistani labor goes to Dubai, Oman and other gulf countries” Siddiqui said.
“They (other countries) have stringent labor laws and higher costs. The manufacturing cost would be lowest in Pakistan, that is for sure,” he said.
Riaz Haq said…
First Djibouti ... now Pakistan port earmarked for a Chinese overseas naval base, sources say
The facility would be similar to one in operation in African nation, offering logistics and maintenance services to PLA Navy vessels

Minnie Chan

https://www.scmp.com/news/china/diplomacy-defence/article/2127040/first-djibouti-now-pakistan-port-earmarked-chinese

Beijing plans to build its second offshore naval base near a strategically important Pakistani port following the opening of its first facility in Djibouti on the Horn of Africa last year.
Beijing-based military analyst Zhou Chenming said the base near the Gwadar port on the Arabian Sea would be used to dock and maintain naval vessels, as well as provide other logistical support services.
“China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port,” Zhou said.
“It’s a common practice to have separate facilities for warships and merchant vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services.”
Another source close to the People’s Liberation Army confirmed that the navy would set up a base near Gwadar similar to the one already up and running in Djibouti.
“Gwadar port can’t provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support,” the source said.

The confirmation follows a report this week on Washington-based website The Daily Caller in which retired US Army Reserve colonel Lawrence Sellin said meetings between high-ranking Chinese and Pakistani military officers indicated Beijing would build a military base on the Jiwani peninsula near Gwadar and close to the Iranian border.
Riaz Haq said…
Strategic implications of Pakistan’s coastal development
By Commodore Arshad Rahim. Retired Pakistan Navy

Historical Background

https://www.pakistantoday.com.pk/2019/09/16/cpec-and-gwadar/

At the time of independence Gwadar had been under the suzerainty of the sultanate of Muscat and Oman since 1784. Soon after independence its potential as a port was pointed out by a naval officer Commander Jackson serving in the Directorate of Ports and Shipping as its Director. In 1954, at the request of the Government of Pakistan, the US Geological Survey engaged the firm Worth Condrick to carry out a survey of Pakistan’s coast. The firm confirmed the feasibility of development of Gwadar as a deep sea port long before its purchase from the Sultan of Oman on 7 September 1958. Its development, however, had to wait a long time because of the huge investment required not only of the port but also the supporting infrastructure across the entire stretch of the difficult and barren terrain of Balochistan.

The initiative for the development of Gwadar into a deep-water port eventually came from China at the turn of the twentieth century. China felt that Gwadar would provide the shortest route of access to sea not only to the less developed Western region of China but also through it to Central Asian states and Russia. It would also enable China to circumvent the Straits of Malacca through which the entire sea traffic to China from the west is routed and whose vulnerability in passage through the straits has been a major Chinese concern.

Construction of the port commenced in 2002 and on completion of the first Phase in 2007 it was leased to Port of Singapore Authority (PSA) for 40 years. The lease was, however, terminated in 2013 with the consent of the firm and the construction and operation of the port was reverted back to the Chinese government. Since then it is being operated by the state-owned firm China’s Overseas Port Holding Company.


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The layout of the coastal infrastructure has improved manifold the maritime defence posture of Pakistan. It has enhanced the interception capability of Pakistan Navy and increased the vulnerability of Indian warships and submarines operating along Pakistan’s coast. For instance, the Indian Osa missile boats would not have been launch and get away with a missile attack on Pakistan Navy ships had they been operating from Ormara instead of Karachi in the 1971 war. Similarly, Pakistan’s ability of detection of Indian submarines deployed for interdiction of shipping traffic along the coast has significantly improved. In recent years Indian submarines have been detected south of Ormara at least on two occasions in 2016 and 2019 and forced to leave Pakistan’s waters. The second incident was soon after the shooting down of two Indian warplanes in February in Azad Kashmir when tensions were high and the forces of the two countries on high alert. On this Occasion an Indian submarine operating south of Ormara with hostile intent was detected, tracked, localised and forced to withdraw.

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It is of course true that Pakistan Navy faces an adversary several times larger in size and capability in the north Arabian Sea. However, over the years the Pakistan Navy has evolved into a small but balanced, well trained, and competent force. With plans based on a sound strategy and advantages accruing on account of a vastly improved coastal setup, it is capable of giving a befitting response to any challenge posed by the Indian Navy and accomplishing its assigned mission in case of hostilities.

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