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.
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.
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:
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".
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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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.
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.
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.
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.
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.”
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).
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.
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.
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".
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.
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.
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.
The statement by China Overseas Ports Holding Company came as Pakistan government stamped a 23-year income tax holiday and exemptions on sales tax and customs duties for the setting up of the Gwadar Free Zone.
It (issuing of ordinance) is a turning point for Pakistan's economy and now billions of dollars will be invested in Gwadar, Zhang told the media persons. Currently, Karachi remained the single largest contributor to the national economic output.
Gwadar port is one of the focal points of the USD 60 billion China-Pakistan Economic Corridor (CPEC). China is investing heavily in Balochistan under the CPEC. The CPEC, launched in 2015, is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea. India has raised objection over the CPEC as it passes through the Pakistan-occupied Kashmir (PoK).
The COPHC and its four subsidiaries are responsible for operating the seaport and its economic zones for a period of 23 years. The concessions had been guaranteed in the Gwadar Port Concession Agreement but the successive governments were not notifying them. However, President Arif Alvi on Monday promulgated two ordinances to set up China-Pakistan Economic Corridor Authority and Tax Laws Amendment Ordinance 2019.
I believe Gwadar will be the largest contributor to the gross domestic product (GDP) growth in seven years, said the chairman, adding that 95 per cent of the production in the Gwadar Free Zone would be exported.
We have completed the master plan of the Gwadar Free Zone that will be built in four phases over a period of seven years, said Zhang. Once the zone is fully developed in seven years, 47,000 jobs will be created for the locals, and its annual sales will be USD 1 billion," the COPHC chairman said.
On the troubles faced in reaching this point, the COPHC chairman said, Today is a big day and I had to struggle for seven years to secure these tax concessions, which had been promised in the Gwadar Port Concession Agreement. I had been running up and down for seven years and everybody made promises with me but nobody helped.
COPHC got the support of the National Development Council a joint civilian and military body upon whose directions the obstacles were removed in obtaining these concessions. So far, 41 investors have come forward to invest about USD 500 million in Gwadar Free Zone in the first phase, said the port operator. These industries are being set up in sectors of logistics, edible oil, piping, and halal food.
He said the USD 500 million investment would create 5,000 jobs for the locals in phase one alone, adding that the free zone developer had made it binding for the investors to complete the physical infrastructure in six months and start production within one year.
The port operator said that in order to promote advanced technology-based industries in the Gwadar Free Zone, the developer might offer free plots, cheap financing, and free housing facilities to such investors.
https://www.ft.com/content/88cfe78b-517f-41d9-97d1-9f7f540f517c
Saudi Arabia has decided to shift a proposed $10bn oil refinery to Karachi from Gwadar, the centre stage of the Belt and Road Initiative in Pakistan, further supporting the impression that the port city is losing its importance as a mega-investment hub. On June 2, Tabish Gauhar, the special assistant to Pakistan’s prime minister on power and petroleum, said that Saudi Arabia would not build the refinery at Gwadar but would construct it along with a petrochemical complex somewhere near Karachi. He added that in the next five years another refinery with a capacity of more than 200,000 barrels a day could be built in Pakistan. Saudi Arabia signed a memorandum of understanding to invest $10bn in an oil refinery and petrochemical complex at Gwadar in February 2019, during a visit by Crown Prince Mohammad Bin Salman to Pakistan. At the time, Islamabad was struggling with declining foreign exchange reserves.
The decision to shift the project to Karachi highlights the infrastructural deficiencies in Gwadar.
A Pakistani official in the petroleum sector told Nikkei Asia on condition of anonymity that a mega oil refinery in Gwadar was never feasible. “Gwadar can only be a feasible location of an oil refinery if a 600km oil pipeline is built connecting it with Karachi, the centre of oil supply of the country,” the official said. There is currently an oil pipeline from Karachi to the north of Pakistan, but not to the east.
“Without a pipeline, the transport of refined oil from Gwadar [via road in oil tankers] to consumption centres in the country will be very expensive,” the official said. He added that at the current pace of development he did not see Gwadar’s infrastructure issues being resolved in the next 15 years.
The official also hinted that Pakistan’s negotiations with Russia for investment in the energy sector might have been a factor in the Saudi decision. In February 2019, a Russian delegation, headed by Gazprom deputy chair Vitaly A Markelov, agreed to invest $14bn in different energy projects including pipelines. So far these pledges have not materialised, but Moscow’s undertaking provided Pakistan with an alternative to the Saudis, which probably irritated Riyadh.
Arif Rafiq, president of Vizier Consulting, a New York-based political risk firm, told Nikkei that a Saudi-commissioned feasibility study on a refinery and petrochemicals complex in Gwadar advised against it. “Saudi interest has shifted closer to Karachi, which makes sense, given its proximity to areas of high demand and existing logistics networks,” he added.
Rafiq, who is also a non-resident scholar at the Middle East Institute in Washington, considers this decision by the Saudis as a setback for Gwadar, the crown jewel of the China-Pakistan Economic Corridor, the $50bn Pakistan component of the Belt and Road.
The Saudi decision “is a setback for Pakistan’s plans for Gwadar to emerge as an energy and industrial hub. Pakistan has struggled to find a viable economic growth strategy for Gwadar,” he said. Any progress in Gwadar in the coming decade or two will be slow and incremental, he added.
Local politicians consider the shifting of the oil refinery a huge loss for economic development in Gwadar. Aslam Bhootani, the National Assembly of Pakistan member representing Gwadar, said the move is a loss not only for Gwadar but for all of the southwestern province of Balochistan. He said he would urge the Petroleum Ministry of Pakistan to ask the Saudis to reconsider their decision.
The decision has shattered the image of Gwadar as an up-and-coming major commercial hub. In February 2020, the Gwadar Smart Port City Masterplan was unveiled, forecasting that the city’s economy would surpass $30bn by 2050 and add 1.2m jobs. Local officials started calling Gwadar the future “Singapore of Pakistan”.
Despite serious efforts to build and promote Gwadar as a global trade centre, business is scarce in the port city. A field report reveals that a lack of infrastructure hampers development and construction of a major road has left fishers worse off.
https://www.thethirdpole.net/en/regional-cooperation/pakistan-gwadar-port-long-way-from-trade-hub-vision/
Unlike Karachi and Qasim ports (also in Karachi), whose infrastructure expanded as they became major global freight hubs, little development had happened in Gwadar before the CPEC project’s launch in 2013.
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There are big plans for Pakistan’s southern coastal city of Gwadar. Pakistan and China are making a considerable effort – and pledging close to USD 700 million in investment – to transform what was once a sleepy fishing town into a vibrant trade hub, complete with a seaport, airport, major road connections and a trade zone. But the pace of development is slow, and business even slower.
“[It] must be because they [the developers] do not have the blessings of the people of Gwadar,” said Abdul Rasheed Isa, a fisher of the Khulgari Ward settlement in the port city.
A visit in April this year revealed that the only real activity at Gwadar port was undertaken by two small crabs, which had made a gargantuan effort to haul themselves up from the crystal-clear water of the Arabian Sea onto the dock. The towering blue and red cranes, brought there to load and unload shipping containers, were still.
The port is the crown jewel of the USD 62 billion China-Pakistan Economic Corridor (CPEC), which connects China’s western Xinjiang province to the Arabian Sea. It is where both countries hope the logistics of incoming and outgoing cargo will be handled for an international market.
The Gwadar port dream started in 2013, when a little-known state-owned company, the China Overseas Port Holding Company (COPHC), acquired the port for 40 years on behalf of Pakistan. About 90% of the port’s revenue is contracted to go to the Chinese company.
On paper, the port’s potential is promising. At present, it has space to berth two or three large ships with a capacity of 50,000 deadweight tonnage. By 2045, it is expected to berth 150 ships and hold up to 400 million tonnes of cargo. According to the Pakistani government, a functional Gwadar port, the country’s third deep sea port, will meet the “increasing demand for trade” that the existing Karachi and Qasim ports are “unlikely to keep pace with” on their own.
Though parts of Gwadar have had a visible facelift, the lives of its 265,000 residents, the majority of whom are poor fishers, have barely improved. In some cases, the construction of these projects has added to their problems. Most struggle with access to basic necessities such as electricity and have limited options for education.
Slow business coupled with delays to major CPEC projects in Gwadar – such as the main expressway road, coal power station and new airport – could mean that their lives are unlikely to improve any time soon.
Naseer Khan Kashani, the chair of the Gwadar Port Authority (GPA), which oversees construction and maintenance, outlined the problem with a frank admission.
Despite Gwadar’s “strategic positioning” as one of the “best deep sea ports” at the mouth of the Persian Gulf, which facilitates the movement of “one-third of global oil every year”, he said the port has failed to bring business.
“It is ready for anyone to use. It’s up to investors and traders to use it to do profitable business. We cannot trade for them,” said Kashani, adding that the creation of demand is “up to the market forces”. Incentives such as competitive handling charges, improved security and safety of cargo at the port and also during transport, speedy customs clearance and free storage for up to three months have failed to beckon traders.
https://www.arabnews.pk/node/1931571/pakistan
#China to invest $15 billion in #petrochemical industry at #Pakistan #Gwadar port. #CPEC has seen #Beijing pledge over $60 billion for #energy & #infrastructure projects in Pakistan, central to China’s (BRI) to develop land & sea trade routes globally
Investment would include a power pipeline project from Gwadar port to western China
Pakistan said last month it is formulating a strategy to improve the security of Chinese companies operating in the country
“Chinese companies would invest in the petrochemical sector in Gwadar, including the project of energy pipeline from Gwadar to China,” Board of Investment (BOI) secretary Fareena Mazhar told the state-run Associated Press of Pakistan.
She added that talks related to the projects were underway, as BOI is working on 50 reforms to create a conducive investment environment and improve the ease of doing business in Pakistan.
Chinese business leaders met Prime Minister Imran Khan in Islamabad last week and reposed their confidence in Pakistan’s “policy support and security,” months after a blast killed nine Chinese nationals working on a CPEC project in northwestern Pakistan.
In a statement after the meeting, Khan’s office said he would hold monthly meetings to “review progress regarding issues faced by Chinese investors.”
Last month, Interior Minister Sheikh Rashid Ahmed announced Pakistan was formulating a strategy to improve the security of Chinese nationals and companies operating in the country.
CPEC has seen Beijing’s pledge over $60 billion for energy and infrastructure projects in Pakistan, central to China’s wider Belt and Road Initiative (BRI) to develop land and sea trade routes in Asia and beyond.
by Arif Rafiq
https://foreignpolicy.com/2021/12/14/pakistan-gwadar-port-protests-china-belt-and-road-cpec/
Rather than transforming this isolated Pakistani city, China’s Belt and Road Initiative has only created great expectations and even greater disappointment. Ultimately, the responsibility for this failure lies on the Pakistani state, which adopted a fundamentally flawed strategy ill-suited for Gwadar, built on a series of assumptions that have been proven to be incorrect.
For starters, Pakistan assumed that Gwadar was absolutely vital to Chinese interests, especially in helping Beijing overcome its reliance on energy imported via the Malacca Strait. But as a 2020 U.S. Naval War College study makes clear, Chinese analysts generally see a Pakistan-based overland energy pipeline to Xinjiang as economically unviable. And there is even some pushback in China’s strategic community on whether it really faces a “Malacca dilemma.”
These perspectives rarely make it into Pakistan’s domestic discourse on China. One reason for this is that Pakistan lacks independent China experts, despite its close strategic partnership with China. Most Pakistani commentators—some of whom are paid by Beijing—stick to the official script. It’s no wonder Pakistani officials are then left blindsided when Beijing’s policy priorities and risk appetite shift.
A second reason: Pakistan—like Djibouti, Kenya, and Sri Lanka—assumed that China’s Shenzhen or Shekou model is not only replicable but also plug and play. This discounts the fundamentally different natures of the Chinese and Pakistani states. China is an authoritarian, hierarchical, developmental state. Pakistan is a semi-democratic, disaggregated rentier state marred by criminality and incompetence from the top down.
The Pakistani state simply lacks the will to create value in the global economy. It is largely focused on extracting from its populace and foreign donors. And it dithers on any sort of policy reform. In the case of Gwadar, it took years for Islamabad to simply pass into law tax exemptions for the port and free zone that are key to attracting foreign direct investment there.
Third, Pakistan’s trickle-down strategy for Gwadar is inappropriate for Balochistan. To begin with, there’s been little economic growth in Gwadar to actually trickle down to locals. And the province, which is Pakistan’s poorest but also home to its oldest and largest natural gas field, has been hit by multiple secessionist insurgencies since Pakistan’s founding, driven in part by resource nationalism. Separatist terrorist groups have also targeted Pakistani nationals from other provinces, including teachers, deemed as “settlers.”
But insensitive claims of an imminent influx of Chinese nationals, including by a luxury real estate developer in 2017, intensified Baloch fears they would be displaced by outside capital and labor in Gwadar. Those specific fears may be unfounded. But instead of an influx of foreign residents, Gwadar is seeing a surge in fishing trawlers from the neighboring Sindh province and China, whose massive hauls are destroying local incomes.
The original plan for Gwadar under CPEC did contain some admirable social sector projects. For example, China has funded the expansion of a middle school and established an emergency medical center in Gwadar. But these are just drops in the bucket for an area with a population close to 100,000 in 2017. Major projects—including a vocational training center, medical hospital, and desalination plant—have either been delayed, scaled down, or dropped. Given Balochistan’s fraught history with Pakistan’s central government, Islamabad should have front-loaded projects that would have provided basic services, especially clean water.
$246 million greenfield Gwadar International Airport (NGIA) being built at an area of 4,300 acres
https://tribune.com.pk/story/2360858/gwadar-airport-to-be-operational-by-december
QUETTA:
The test flight from new Gwadar International Airport would be started from December this year as the construction work on site has been expedited, an official of Gwadar Development Authority said on Thursday.
The new $246 million greenfield Gwadar International Airport (NGIA) being built at an area of 4,300 acres would be made operational before the deadline which was September 2023, the official said.
The government has also expanded the 50-bed Pak-China Friendship Hospital Gwadar to 150 beds state-of-the-art medical centre in order to ensure best health care facilities for the people of Gwadar.
The authority would ensure state-of-the-art free medical facility to the inhabitants of the port city of Gwadar from January next year, he said.
The officials were making all-out efforts to expedite the infrastructure and development projects for its timely completion.
The GDA said the authority has expedited the implementation of old town rehabilitation plan of Gawadar to provide best infrastructure and provide every facility to the masses of the port city. With the support of federal government, the project worth Rs3.3 billion for old town rehabilitation of Gwadar was in full swing to develop the city on modern lines to end the sense of deprivation among the people of the area, he addd.
The federal government would be funding 67 per cent of the total cost while Balochistan government would bear the remaining cost for the old town rehabilitation under the Gwadar development plan.
Under the plan, water drainage, supply and distribution of utility projects would be completed soon, besides ensuring the supply of clean drinking water to the dwellers.
The official said the water supply issue in Gwadar would be resolved in the short period of three months as desalination plant is also in progress to cater to the need of whole city.
The authorities have been directed to strictly adhere to Gwadar Master Plan while carrying out development and other public welfare projects in the city.
https://youtu.be/6VBF1uIkDx8
The airport's 4C, 4D, 4E, 4F... are the flight zone levels, which are represented by numbers + letters. The number indicates the length of the runway, and "4" indicates 1800 meters or more. The letters indicate the wingspan and wheelbase of the aircraft that can take off and land, from A to F, the larger it becomes.
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Karachi Airport Certified for Aircraft Operation up to Aerodrome Reference Code 4E
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Islamabad Airport has been certified for aircraft operation up to aerodrome reference code 4F that allows Airbus A380 flight operations.
The purpose of this AIRAC AIP Supplement is to notify the aviation industry of the aeronautical
ground facilities, navigational equipment and services that are available at Islamabad Int’l airport for
aerodrome reference code 4F Cargo / Commercial Operations. The airport is located at a distance of
14.08NM from Islamabad city.
https://caapakistan.com.pk/Upload/AIS/AIRAC%20AIP%20Supplement%20S-06(18).pdf
https://youtu.be/41pCsOkmBoI
Key Highlights
Being built by China Airport Construction Company
Rising Phoenix shape like a wing
4F class---2nd greenfield airport after New Islamabad Airport (longer than 1,800 meters)
3,650 meters long runway
Project started October 2019
Original schedule was for completion in 36 months
Delayed due to pandemic, now expected to be completed by December, 2022
http://en.ce.cn/Insight/202206/15/t20220615_37760375.shtml
GWADAR, Jun. 15 (Gwadar Pro) – “In the eyes of outsiders, high temperature and scorching sun may be a disadvantage of Gwadar, but in our view, the light and heat conditions here are a natural advantage for the development of agriculture and non-wood forest”, noted Zhang Saiyang, vice director of the Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest and doctoral candidate of Central South University of forestry and technology, in an exclusive interview with Gwadar Pro.
The Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest was jointly initiated and established by Central South University of forestry and technology, China Overseas Ports Holdings Co., Ltd. and Yulin Holdings Co., Ltd. for Gwadar ecological construction and industrial development. Since 2018, it has systematically improved the local soil conditions in Gwadar. Zhang told Gwadar Pro that the Chinese team combined the organic fertilizer collected from local sheep farm and leaves and other humus to mix with local soil in a certain proportion to improve the fertility and pH of the local soil. Besides, the local soil conditions were greatly improved by the team members planting legumes to use the nitrogen fixation of legume rhizobia.
“In addition to the soil, moisture is our long-term focus as well. With arid climate here, the irrigation method appears to be particularly important,” Zhang said, “after enhancing the soil water retention capacity through soil improvement, we mainly use a combination of sprinkling irrigation and drip irrigation to maximize water conservation. Not to mention that our selected varieties are drought tolerant crop with very developed root systems.”
By now, nearly 100,000 seedlings such as bananas, dates, orchid and figs have been cultivated here. Among them, bananas (Musa nana) are selected local varieties that can adapt to drought and high temperature and produce a large amount of fruit. In May, the center successfully held the first non-wood forest products-banana harvest festival in Gwadar Port. “Our production of bananas has attracted the attention of local farmers, who hope to buy banana seedlings to grow on their own land,” Zhang mentioned.
Moreover, figs are also a key economic crop here. Hundreds of fig seedlings have already produced a lot of fruit in just one month. More than 10 hours of sufficient sunlight per day and the temperature difference between day and night in the Gwadar region allow figs, a drought-tolerant and light-loving plant, to accumulate more sugar. According to the promotion plan, the fresh and dried figs launched by the center will have a place in the market.
“In addition to bananas and figs, which are familiar to Chinese people, the endemic crops of Pakistan, including Sesbania grandiflora and Ziziphus spina-christi, can also give full play to their economic value through our breeding techniques,” Zhang listed the local valuable economic crops one by one, “the leguminous plant Sesbania grandiflora is resistant to high temperature and drought, and has a large amount of fruit. It is a very good tree species for ecological greening and economic forest. Its fruit, as a woody vegetable, has been widely promoted by us in Gwadar, and then sold in the market. The local unique Ziziphus spina-christi is also drought-tolerant and light-loving, which can bear fruit several times a year. The seedling breeding, fresh fruit sales and juice processing of it have also been put on the agenda.”
As for the future planning, Zhang Saiyang mentioned that the center has set up “Gwadar Classroom” to train local workers. Opened in March this year, it has trained the first batch of modern agricultural skilled workers in the local area, laying a solid foundation for the local development of agriculture and non-wood forest industry, as well as promoting farmers’ employment and using their own land to start businesses.
https://asia.nikkei.com/Spotlight/Belt-and-Road/Oman-offer-to-build-Gwadar-railway-conjures-Pakistan-port-s-past
ISLAMABAD -- A company from Oman is looking to invest in a train line that would link the Pakistani port town of Gwadar -- envisioned as a key stop on China's Belt and Road infrastructure network -- with Pakistan's main railway system.
The proposed multibillion-dollar project could go a long way toward resolving the seafront city's lack of rail connectivity. It also conjures up the past of Gwadar, which was part of Oman for 175 years. But at the same time, Pakistan's turbulent political situation is casting doubt on the prospects for pushing the plan forward and realizing the port's potential.
Earlier this month, officials from Anvwar Asian Investments, an Omani project financing firm, met with officials of Pakistan's Board of Investment and expressed interest in building a 1,087-kilometer railway between Gwadar and Jacobabad in central Pakistan. The investment would be worth $2.3 billion, and the Omani side says it is ready to provide an immediate tranche of $500 million as initial financing, according to the BOI.
Many see the plan as fitting, given the history that binds Gwadar with Oman -- about 450 km away, across the mouth of the Gulf of Oman.
In 1783, the ruler of what was then Kalat State -- now Balochistan -- gifted Gwadar to Oman's Taimur Sultan, a defeated prince on the run, who later mounted a comeback and reigned as sultan in Muscat. Gwadar remained part of Oman until roughly a decade after Pakistan's inception, when Islamabad purchased it in 1958 with British help.
Many of Gwadar's older residents still have Omani nationality as well.
Nasir Sohrabi, president of the Rural Community Development Council in Gwadar, said Oman has been the primary overseas destination for the people of Gwadar, even after the town became part of Pakistan. "Plenty of people from Gwadar live in Oman and do business or work as employees in many sectors, including the army," he told Nikkei Asia.
Oman is well-regarded among many locals. Sohrabi added that when Gwadar suffered severe power shortages in 2001, Oman's then-ruler, Sultan Qaboos, gave the city 45 power generators.
"This is one instance of the people of Gwadar having a special bond with Oman," Sohrabi said.
The railway investment offer, if it comes to fruition, would significantly ease access to Gwadar and its Chinese-built and operated port, part of the $50 billion China-Pakistan Economic Corridor.
Despite being in the middle of BRI activity in Pakistan, no train lines run to Gwadar, and uncertainty shrouds plans for other railway upgrades under CPEC. Plans call for improving tracks between Peshawar and Karachi, the latter of which is about 600 km from Gwadar. But this project, known as Main Line-1 or ML-1, appears at risk of being shelved due to a disagreement on costs between Islamabad and Beijing, according to local reports in April.
"China wanted ML-1 to have a price tag of $9 billion, which Pakistan reduced to $6.8 billion," an official who deals with the planning of federal projects in Pakistan told Nikkei Asia on condition of anonymity, as he is not authorized to talk to the media.
The official added that Islamabad wants loans at a lower rate than what Beijing is prepared to offer.
Sohrabi stressed that Gwadar can never be a successful major port without a strong railway network.
"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."
https://asia.nikkei.com/Spotlight/Belt-and-Road/Oman-offer-to-build-Gwadar-railway-conjures-Pakistan-port-s-past
"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."
Some see the Omani offer to develop Gwadar's infrastructure as a quid pro quo effort to support CPEC. China is investing in an industrial park in Oman's Duqm, a port town about 1,000 km south of the Strait of Hormuz, a key shipping lane.
Yet, Oman's Anvwar Asian Investments is not the only one interested in building a railway link for Gwadar.
"A Singaporean company, Pathfinder, has expressed its interest to invest $5 billion to develop a high-speed rail network from Gwadar to Hub," a town in Balochistan, Saeed Ahmed Sarparah, chairman of the Balochistan Board of Investment and Trade, told Nikkei. He added that the Singaporean offer is undergoing an assessment by the federal government.
Neither the Omani company nor the Singaporean one had responded to requests for comment as of publication time.
Some are skeptical about the chances of moving forward with such a high-stakes, long-term endeavor given the persistent political instability in Pakistan. The coalition government of Prime Minister Shehbaz Sharif is locked in a power struggle with the man he replaced, Imran Khan, amid an economic crisis. Khan now faces terrorism charges. And investments in Balochistan, whether by China or a Canadian gold miner, have become targets of separatists.
Aslam Bhootani, a member of the National Assembly representing Gwadar, told Nikkei he was unaware of the rail investment offers as he had "not been taken into confidence yet."
But Bhootani said, "I do not see how Oman and Singaporean companies can benefit from investing in the rail network of Gwadar at such a turbulent time."
Beijing’s Belt and Road investment strategy meets resistance in the developing world it seeks to influence
https://www.wsj.com/articles/china-pakistan-attacks-belt-and-road-11669218179
China is the largest lender to the developing world, mainly through Chinese leader Xi Jinping’s Belt and Road infrastructure program. The country has worked to portray itself as a benevolent partner to the countries where it is spending money, in an attempt to draw a distinction with Western powers.
Still, as its global reach expands, China is increasingly grappling with the consequences of projecting power around the world, including corruption, local resentment, political instability and violence. For developing countries, China offers perhaps the best chance of quickly building major infrastructure.
Beijing accepts a degree of security risk in pursuing its Belt and Road program and is committed to working with partner governments, such as in Pakistan, to mitigate threats to Chinese personnel and assets, Chinese experts say.
“We couldn’t possibly wait until all terror attacks cease before starting new projects,” said Qian Feng, a senior fellow at Tsinghua University’s National Strategy Institute. “We have to keep working, studying the issues, and undertake preventative measures at the same time.”
Chinese businesses and workers in several countries where it is making investments have become favored targets. Chinese nationals are seen as wealthier than most locals and, in some cases, are perceived to be reaping too much of the economic benefits and job opportunities created by Beijing’s investments.
Gunmen in Nigeria abducted four Chinese workers in June during an attack at a mine in the country’s northwest. In October, unidentified “thugs” attacked a Chinese-funded business in Nigeria and killed a Chinese employee there, according to the Chinese consulate in Lagos. The consulate urged Chinese companies to hire private security and fortify their work areas.
In the Democratic Republic of Congo, where Chinese investors dominate the mining industry, Chinese business groups and workers have sounded alarms about armed robberies and kidnappings in recent months. Beijing has urged local authorities to step up security for Chinese assets and personnel.
There were about 440,000 Chinese people working abroad for Chinese contractors in Asia and roughly 93,500 in Africa at the end of last year, according to the China International Contractors Association, a Beijing-based industry group.
The Oxus Society, a Washington-based think tank, counted about 160 incidents of civil unrest in Central Asia between 2018 and mid-2021 where China was the key issue.
Beijing recognizes the rising threat to its workers in developing countries but doesn’t want to send in its army as it professes noninterference abroad, said Alessandro Arduino, author of “China’s Private Army: Protecting the New Silk Road.” Instead, China is deploying technology such as facial recognition and hiring more private Chinese security contractors, he said.
China chose Pakistan—one of its closest allies, with deep military ties and a common rival in India—as a showcase of its investment in developing nations. Beijing has spent about $25 billion here on roads, power plants and a port.
https://www.marineinsight.com/shipping-news/indias-trade-dreams-snubbed-as-the-worlds-biggest-ship-gives-it-a-miss/
India’s goal of being a trade hub hit a major snag on January 11, when the world’s biggest boxship, Ever Alot, gave it a miss because of port infrastructural issues. Meanwhile, the economically hit Sri Lanka and the south-east nation Malaysia have been visited by Ever Alot in recent times.
Although the Jawaharlal Nehru Port Trust highlighted that the Mundra Port run by Adani could handle the 24000 TEU ship, Ever Alot decided to skip it over the lack of a 17-meter draft. To berth the 400 meters long ship, such a draft was crucial.
So far, the Mundra Port has handled ships as big as APL Raffles, a 17,292-TEU ship, in January last year. The vessel was carrying 13,159 TEUs onboard at that time.
https://www.pakistantoday.com.pk/2023/02/09/20-new-projects-in-gwadar-on-the-way-of-completion-during-2023-report/
These projects entail desalination potable water plant, Gwadar Free Zone North (Phase 11), Gwadar Safe City Project, New Gwadar International Airport, three electricity projects, Gwadar Smart Port City Master Plan, Gwadar Tourism Project, New management model of Pak-China Technical and Vocational Institute (PCT & VI), State of Art Shipyard Project, Oil Refinery project, Green Gwadar Project, Pak-China Friendship Hospital, fisher community projects, Gwadar Port dredging project, Export-oriented projects, Fishing industry, Warehouse industry, and Gwadar Huafa Exhibition and Trading Center.
According to the report, over the last 10 years since CPEC set its foot in 2013, Gwadar outlook is changing gradually and constructively, getting over daunting challenges including poverty, civic issues, water, electricity, employment, infrastructure, agriculture and on top of them blue economy.
In the past Gwadar was in shamble and disarray. Later in the course of 10 years, Gwadar has been making headway toward progress in a sustainable manner.
Many development projects have been completed so far including Gwadar Port, Gwadar Free Zone South (Phase I), Eastbay Expressway, Pak-China Technical and Vocational Institute (PCT & VI), China-Pakistan Gwadar Faqeer Middle School, Fiber Optic, E-Custom system (WeBOC), Plant Tissue Culture Lab & Green House, livestock, women-led garment factory, Gwadar University and GDA-Indus Hospital.
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The city’s strategic location at the mouth of the Persian Gulf, coupled with its deep-sea port and modern infrastructure, makes it a hub for trade, transportation, and investment.
As a result, Gwadar is expected to attract a significant amount of foreign investment and economic activity in the coming years, emerging as a major contributor to Pakistan’s economic growth.
One of the most significant projects is the 1.2 Million Gallon Per Day (MGD) de-salination plant, expected to be fully operational by April 2023. This plant will provide a reliable source of clean drinking water to the residents of Gwadar.
In 2023, more than 4 lakhs of people of Gwadar are going to get rid of painful power woes as three electricity projects will power up Gwadar. The first project is about 100 MW Irani electricity from Gabd-Remdan (Pak-Iran border) to Jiwani Grid Station to Gwadar that will come on 1st March.
The second project is another 100 MW from Iran-Pangjur-Turban-Pasni to Gwadar that is going to be completed in current year. The third project is from Quetta, Nag-Besima section to Pangjur and then Turbat-Pasni to Gwadar.
Meanwhile 5 MW power supply will be available to Gwadar Free Zones North (Phase II). If all goes well, in the second step 12 MW power supply will be ensured for Gwadar Free Zone South (phase I) and Gwadar Port in coming months. Finally, the government also approved 300 MW coal-fired power project for Gwadar.
Another major project that is expected to pick more pace in 2023 is the development of the Gwadar Free Zone North (Phase II) spreading over 2,221 acres of land. Currently, export-based Chinese companies are very near building and running their factories in a few months.
The year of 2023 has also brought many fortunes for Gwadar’s fishermen regarding their livelihood to new housing schemes. The Balochistan Government has approved 200 acres of land for new fishermen housing colony for low-income fishmen of Gwadar.
Around Rs300 million has been allocated. Around 3,291 poor fishermen of Gwadar are going to get free of cost boat engines as the government has allocated funds of Rs823 million.
@Kanthan2030
In the last six years, China has lent $185 billion in emergency loans to developing nations. That’s more than the IMF.
Multipolar world where poor countries are not the mercy of one system. 👋🏻👇🏽
Also an important fact is that the majority of the loans are happening in Yuan
“Lender of last resort” — Bloomberg
https://twitter.com/Kanthan2030/status/1640918548720812033?s=20
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https://www.bloomberg.com/news/newsletters/2023-03-28/global-economy-latest-china-is-lender-of-last-resort-to-emerging-markets
Creditor-in-Chief
Is China finally living up to its responsibility as the world’s second-largest economy? Or is it setting up a rival system of global governance as the relationship between Beijing and Washington gets sourer by the day?
Those are the questions raised – once again, the cognoscenti might say – by a new paper that lays out the growing role of China as a lender of last resort to countries in economic peril, of which there is now a growing list.
Among the findings of a new paper that my colleague Tom Hancock and I report on here:
From 2000-21, the People’s Bank of China and state-owned banks sent $240 billion to governments in the developing world in what amounted to emergency loans.
The bulk of that came in 2016-21, when 22 countries got some $185 billion, according to what the researchers were able to document.
That total surpassed the $144 billion that IMF data shows its members having drawn from the Washington-based lender during that time.
The research — by Sebastian Horn of the World Bank, Brad Parks of the William & Mary AidData project, former World Bank chief economist Carmen Reinhart and Christoph Trebesch of Germany’s Kiel Institute for the World Economy — is part of a growing body of work looking at Chinese lending.
https://twitter.com/bilalgilani/status/1677391745112477696?s=20
Bilal I Gilani
@bilalgilani
CPEC projects are creating 192,000 jobs, generating 6,000MW of power, building 510 km (316 miles) of highways, and expanding the national transmission network by 886 km (550 miles),” Foreign Ministry spokesman Wang Wenbin told reporters in Beijing."
Associated Press of Pakistan: On July 5, Prime Minister Shahbaz Sharif while addressing a ceremony to mark a decade of signing of the China-Pakistan Economic Corridor (CPEC), said that CPEC has been playing a key role in transforming Pakistan’s economic landscape. He also said that the mega project helped Pakistan progress in the region and beyond. What is your response?
Wang Wenbin: The China-Pakistan Economic Corridor (CPEC) is a signature project of China-Pakistan cooperation in the new era, and an important project under the Belt and Road Initiative. This year marks the 10th anniversary of the launch of CPEC. After ten years of development, a “1+4” cooperation layout has been formed, with the CPEC at the center and Gwadar Port, transport infrastructure, energy and industrial cooperation being the four key areas. Projects under CPEC are flourishing all across Pakistan, attracting USD 25.4 billion of direct investment, creating 192,000 jobs, producing 6,000 megawatts of electric power, building 510 kilometers of highways and adding 886 kilometers to the core national transmission network. CPEC has made tangible contribution to the national development of Pakistan and connectivity in the region. China and Pakistan have also explored new areas for cooperation under the framework of CPEC, creating new highlights in cooperation on agriculture, science and technology, telecommunication and people’s wellbeing.
China stands ready to work with Pakistan to build on the past achievements and follow the guidance of the important common understandings between the leaders of the two countries on promoting high-quality development of CPEC to boost the development of China and Pakistan and the region and bring more benefits to the people of all countries.
https://www.fmprc.gov.cn/eng/xwfw_665399/s2510_665401/2511_665403/202307/t20230706_11109401.html
https://pakobserver.net/gwadars-1-2-mgd-water-plant-completed-gpa/
In order to provide clean water to residents of Gwadar, 1.2 MGD seawater desalination plant has finally been completed as per schedule. Formal inauguration is all set to be executed by Prime Minister Shahbaz Sharif during his likely visit to Gwadar after Eid Holidays. Talking to Gwadar Pro, Gwadar Port Authority (GPA) project director Dawood Baloch said water desalination plant has been done and dusted with a grant of Rs. 2 billion from China in collaboration with Gwadar Port Authority (GPA), National Engineering Services Pakistan and China Harbor Engineering Company (CHEC).
Along with completion of Civil, mechanical and electrical work, Central room of 1.2 MGD desalination water plant is now up and running, he informed. Almost 90 percent manpower and human resource, he said, have been hired from local market of Gwadar and Balochistan. On a query, he said that all related equipment and apparatus have been installed in befitting manner to keep desalination water plant functional with full capacity.
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Gwadar to get clean drinking water
https://tribune.com.pk/story/2406514/gwadar-to-get-clean-drinking-water
QUETTA:
A pipeline 152 kilometers in length, connected to two newly-constructed dams, Shadi Kor and Sod, will provide clean drinking water to Gwadar city.
"The government is taking all possible steps to prevent a water shortage and supply clean water to the people," Public Health Engineering (PHE) Secretary Saleh Baloch said. Uninterrupted water supply to people's homes should be ensured, and no negligence will be tolerated in this regard, he added.
He expressed these views while presiding over the review meeting regarding Gwadar's ‘Ab-noshi’ projects. Gwadar Deputy Commissioner Izzat Nazir Baloch, PHE Executive Engineer Shakeel Ahmed Baloch, Development Institute Gwadar Chief Engineer Haji Syed Muhammad Baloch, Health Engineering SDO Engineer Shezar Amir, and other officers were also present in the meeting.
Chief Engineer Syed Muhammad Baloch said that the water capacity of Shadi Kor Dam is 35 thousand acre-feet, while the water capacity of Sod Dam is 46 thousand acre-feet.
https://pakobserver.net/gwadars-1-2-mgd-water-plant-completed-gpa/
In order to provide clean water to residents of Gwadar, 1.2 MGD seawater desalination plant has finally been completed as per schedule. Formal inauguration is all set to be executed by Prime Minister Shahbaz Sharif during his likely visit to Gwadar after Eid Holidays. Talking to Gwadar Pro, Gwadar Port Authority (GPA) project director Dawood Baloch said water desalination plant has been done and dusted with a grant of Rs. 2 billion from China in collaboration with Gwadar Port Authority (GPA), National Engineering Services Pakistan and China Harbor Engineering Company (CHEC).
Along with completion of Civil, mechanical and electrical work, Central room of 1.2 MGD desalination water plant is now up and running, he informed. Almost 90 percent manpower and human resource, he said, have been hired from local market of Gwadar and Balochistan. On a query, he said that all related equipment and apparatus have been installed in befitting manner to keep desalination water plant functional with full capacity.
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Gwadar to get clean drinking water
https://tribune.com.pk/story/2406514/gwadar-to-get-clean-drinking-water
QUETTA:
A pipeline 152 kilometers in length, connected to two newly-constructed dams, Shadi Kor and Sod, will provide clean drinking water to Gwadar city.
"The government is taking all possible steps to prevent a water shortage and supply clean water to the people," Public Health Engineering (PHE) Secretary Saleh Baloch said. Uninterrupted water supply to people's homes should be ensured, and no negligence will be tolerated in this regard, he added.
He expressed these views while presiding over the review meeting regarding Gwadar's ‘Ab-noshi’ projects. Gwadar Deputy Commissioner Izzat Nazir Baloch, PHE Executive Engineer Shakeel Ahmed Baloch, Development Institute Gwadar Chief Engineer Haji Syed Muhammad Baloch, Health Engineering SDO Engineer Shezar Amir, and other officers were also present in the meeting.
Chief Engineer Syed Muhammad Baloch said that the water capacity of Shadi Kor Dam is 35 thousand acre-feet, while the water capacity of Sod Dam is 46 thousand acre-feet.
https://www.nation.com.pk/28-Jun-2023/gwadar-to-turn-into-economic-hub-with-airport-operationalisation
ISLAMABAD-The establishment of New Gwadar International Airport (NGIA) is a shining example of collaboration between China and Pakistan in the area of aviation, as Gwadar is going to turn into an economic hub and tourist destination following the expected completion of this project in September 2023, said aviation consultant Muhammad Afsar Malik. “The NGIA will be the largest airport in Pakistan after its operation,” said Afsar Malik. Test flight operations were made at the NGIA in March 2023, and currently the main terminal building has been undergoing indoor mechanical and electrical equipment installation and decoration operations. Afsar said that construction work on the runway of the airport, including taxiway and service lanes, and navigational lighting system has also been completed.
Due to its modern design, and infrastructure facilities, the NGIA is estimated to be the biggest airport in Pakistan, capable of handling A380 aircraft. Highlighting the potential and capacity of the NGIA, Afsar Malik added that it will not only boost the development of Gwadar, but also act as a portal for boosting trade between Pakistan and China. This newly built airport will elevate the geopolitical status of the region. “Owing to its geographical location, the NGIA will prove as one of the leading airports not only for Pakistan but also for the region to enhance regional trade and connectivity,” Afsar said while talking to WealthPK, adding that the airport will enhance connectivity and trade with Afghanistan, Iran, China, Kazakhstan, Jordan, the United Arab Emirates, Kingdom of Saudi Arabia, and Qatar through the nearest available airports in the region.
The NGIA has set a shining example of the mega China-Pakistan Economic Corridor (CPEC) project and the collaboration between China and Pakistan in the aviation sector. A senior official from Pakistan Civil Aviation Authority (PCCA), pleading not to be named, told WealthPK that Boeing 747 and other Air Bus aircraft will be able to land at the NGIA with ease, and flights to India, Afghanistan, Iran, China, the Middle East, Central Asian countries will be made from this airport. The official said the NGIA is built with advanced facilities as four planes will be able to get landing simultaneously at this airport, a facility which is not currently available at any other airport in the country. “For the convenience of passengers, 39 hold-and-hang baggage scanning machines are being installed, and latest security arrangements have been installed at the airport with fool-proof security arrangements,” said the official. The areas adjacent to this new airport have been declared special security zones and fool-proof arrangements will be ensured. The official said that with the assistance of Chinese authorities, research is also being conducted to ensure clean and green environment in the areas of the NGIA. The length of runway is 3,658 meters, with the width of 75 meters to adjust big planes’ landing at this airport.
The NGIA is also facilitated with maintenance of planes. As Gwadar is going to become a hub of world trade following the CPEC projects, all the projects are being completed as per international standards.
More than 3,000 people will get employment opportunities at the airport, and trade and economic activities will get boost along with tourism potential as Gwadar, owing to its marine landscape, has unique prominence and attraction.
The Chinese government has financed the airport as part of the CPEC project, while the Sultanate of Oman also contributed $17.6 million for the airport project. A Chinese airport construction firm, Chinese Communication Construction Company (CCC), has been handling this project of $246 million, and following its completion, it will be operated and managed by the PCAA.
https://www.scmp.com/comment/opinion/article/3231705/why-fears-chinese-naval-base-pakistans-gwadar-port-are-overblown
China’s continued investment in the port, despite its lacklustre performance, has raised suspicions that it is intended for use as a Chinese navy base
However, despite its strategic location, the port is not as attractive as the ones in Karachi and Ormara, nor does Islamabad seem interested in a permanent Chinese naval presence
By Riaz Khokhar
On August 14, a roadside bomb targeted a convoy carrying Chinese engineers in Gwadar, Pakistan. While none were injured, the continued presence of Chinese workers in Gwadar, despite recurring terrorist attacks, might puzzle casual observers.
By accepting Pakistan’s 40-year lease proposal for the Gwadar port’s construction and operation in 2013, Beijing also signed up to the inherent risks of working in Balochistan, a province marred by insurgency. The choice underscored a prioritisation of strategic interests over purely economic ones.
Despite Gwadar Port operating since 2008, it has seen minimal economic activity. While trade activity at Karachi Port and Port Qasim averaged 41 and 48 million tonnes respectively between 2020 and 2023, Gwadar Port reported under 100,000 tonnes.
This disparity, combined with persistent Chinese investment despite obvious risks, has bolstered the idea that Beijing may be helping Pakistan construct a larger naval facility at Gwadar for potential access and use by the Chinese navy.
In the early 2000s, Pakistan began reaching out to China to help build a naval base at Gwadar. By 2005, Pakistan’s naval chief had envisioned it as the nation’s third naval base, complementing the Karachi base and the Jinnah base at Ormara.
Gwadar is seen as a probable location for a Chinese naval base due to its strategic position near the Strait of Hormuz and ability to host large warships. It is anticipated that Chinese navy warships will dock at Gwadar for repairs and replenishment, as they have in Karachi in the past. This would address China’s ability to sustain a fleet in the Indian Ocean and may allow Beijing access to regional maritime data.
However, to what extent will this potential be realised? Key considerations include the nature of China’s intelligence operations concerning US naval activities and whether Pakistan would allow the Chinese navy permanent access to its bases.
https://www.scmp.com/comment/opinion/article/3231705/why-fears-chinese-naval-base-pakistans-gwadar-port-are-overblown
Intelligence gathering by Chinese entities or navy personnel at such facilities is hardly new. US Navy Lieutenant Commander Joseph McGinnis’ research highlighted the Karachi and Jinnah naval bases as primary choices for the Chinese navy due to their “superior repair, logistics, and military facilities”. If China were to use Pakistan-based facilities for overseas operations, these two bases would be prioritised.
Besides, Pakistan hosts most of its naval assets – much of them Chinese-supplied – at the Karachi and Jinnah bases. Chinese technicians have been present at the former for years and are likely to be at the latter too, given the relocation of strategic assets there since 2011.
Beijing would probably have been gathering intel on US naval activities in the Persian Gulf through its assets and personnel at these bases. If the US had reservations, it would have exercised its leverage over Pakistan to address them.
Additionally, such surveillance is hardly unique. Chinese firms operating ports in over 50 countries similarly monitor naval operations, according to Isaac B. Kardon and Wendy Leutert in their 2022 International Security article, “Pier competitor: China’s power position in global ports”.
Pakistan is likely to accept this trade-off in return for Chinese naval transfers, given the constraints on obtaining military equipment from the US and Europe. Islamabad aims to increase its intelligence, surveillance and reconnaissance (ISR) capabilities not only against India but against terrorists, who have previously targeted Pakistan’s naval strategic assets.
The Pakistani cabinet’s recent nod towards renewing the Communications Interoperability and Security Memorandum of Agreement with the US after its 2020 expiration indicates Islamabad’s interest in US military tech integrated with ISR features. If China offers similar tech, it might understandably want access for regional data collection.
Yet, this is vastly different from the Chinese navy deploying surveillance ships directly on the Pakistani coast. Currently, the Chinese navy primarily utilises its Djibouti base for noncombat and anti-piracy missions near the Gulf of Aden and Red Sea, up to North Africa. Having a foothold in Pakistan’s southwestern shores would significantly aid operations extending to the Persian Gulf.
https://www.scmp.com/comment/opinion/article/3231705/why-fears-chinese-naval-base-pakistans-gwadar-port-are-overblown
Islamabad has previously allowed port calls by the Chinese navy, including submarine visits. Pakistan’s chief of naval staff recently indicated an openness to more such visits, including from Chinese aircraft carriers.
Still, the primary role of the temporary deployment of Chinese navy personnel and warships on these bases has been to offer training to Pakistani navy officers and improve interoperability on Pakistan’s warships of Chinese origin. To date, the Chinese navy hasn’t established a consistent naval presence on Pakistani bases.
Pakistan would be wise to avoid granting the Chinese navy access to its bases for contingency operations, as this could one day translate into regional military actions or coercive diplomacy.
Instead, Islamabad seems to be leveraging the possibility of such port calls to secure support from the US. For example, the US has approved a US$450 million F-16 sustainment sale and supported an International Monetary Fund loan package.
There are two scenarios in which Pakistan might allow permanent Chinese navy deployments at its bases.
One, Washington’s support for Islamabad diminishes and punitive actions against Pakistan increase, coupled with amplified backing for India’s defence capabilities and potential military campaigns against Pakistan. In other words, unless Pakistan anticipates an irreversible breakdown in its strategic relationship with the US, it would be reluctant to permit a permanent Chinese naval presence.
Two, if China supersedes the US in economic, military and diplomatic dominance, and Pakistan secures guarantees from Beijing, then Pakistan’s expectation of US benefits or penalties may diminish, enabling more latitude in its decisions.
Riaz Khokhar is a research analyst on geopolitics and security of the Indo-Pacific region and a former Asia studies visiting fellow at East-West Center in Washington
https://en.portnews.ru/news/369176/
China and Pakistan agreed to solidly enhance connectivity between the Gwadar Port and other parts of Pakistan, said a joint statement issued here Tuesday during Chinese Premier Li Qiang's official visit to Pakistan.
Recognizing the significance of the Gwadar Port as a key hub for cross-regional connectivity, the two sides reaffirmed their readiness to speed up the development of the auxiliary infrastructure of the Gwadar Port and to steadily attract more cargo shipments to the port.
They also agreed to find a solution to the inadequate water and power supply at an early date, to accelerate the development of the port's industrial zone and to solidly enhance connectivity between the port and other parts of Pakistan.
Patial RC, retired Infantry officer of the Indian Army
https://www.eurasiareview.com/17102024-cpec-upgraded-version-with-pakistans-5es-oped/
Upgraded Version of CPEC: 5Es
In a Joint Statement the two sides reaffirmed their commitment to an upgraded version of CPEC by jointly building a growth corridor, a livelihood-enhancing corridor, an innovation corridor, a green corridor and an open corridor, and develop CPEC into a demonstration project of high-quality Belt and Road cooperation. The two sides agreed to further synergize China’s eight major steps for supporting BRI cooperation with Pakistan’s 5Es framework based on Exports, E-Pakistan, Environment, Energy, and Equity & Empowerment.
IMF: Urged Pakistan to halt incentives to SEZs
The International Monetary Fund (IMF) asked Pakistan to stop setting up any Special Economic Zones (SEZ) that offers incentives for investment, in a move that may undermine Islamabad’s efforts to attract more Chinese industries into the country. IMF said in its report released on Oct 10. This may impact efforts to draw Chinese industries amid ongoing development under the CPEC. This will help provide a level playing field for investment, said the report.
The IMF’s condition comes as Prime Minster Shehbaz Sharif is trying to convince Chinese to shift more industries into Pakistan. The country had planned to build at least 9 SEZs under the CPEC projects that are at various stages of development.
The Pakistan government has assured the IMF that it will not allocate an additional budget to settle the 493 billion dues of Chinese power plants. The outstanding dues of power projects of the CPEC alarmingly increased to a record USD 1.8 billion as of the end of January 2024. By 2023, Pakistan was dedicating nearly 8 per cent of its GDP just to service its debt to China.
CPEC Shifts from Large-Scale Projects to Smaller Ones
Although some energy and infrastructure projects have been completed. CPEC projects have yet to deliver meaningful benefits to the people of Balochistan, a province that makes up 44% of Pakistan’s land.
A key issue remains energy. The two energy projects under CPEC are located in Balochistan. The first 300 MW imported coal power project in Gwadar has yet to be built and the project is likely be shelved due to non-availability of finances. Meanwhile, the China Power Hub Generation Company’s 1,320MW coal-fired plant is also facing frequent problems and leading to appeals for intervention from the Chinese ambassador to the prime minister.
The BRI’s flagship project, the Gwadar port, is operational but has so far failed to attract any worthwhile trade activity envisioned to “connect South Asia to the world”.
China, meanwhile, has shifted away from large-scale infrastructure projects to smaller ones with faster results focusing on a thousand small-scale livelihood programmes, aim to address local needs through targeted, manageable projects. Chinese business leaders are believed to have revealed unofficial instructions from their government to avoid investing in long-term projects. The direction changed after the slow pace and poor returns on existing projects.
According to Isabel Hilton, founder of China Dialogue 2024 and visiting professor at King’s College London. “Large-scale BRI investments peaked around 2017, as many of the projects became problematic for a number of reasons,” she told Dialogue Earth. Chinese banks and government entities have become much more cautious in their lending and finance policies in a world of low growth and mounting levels of debt.”
https://english.news.cn/20241001/d0db756e74104906b9502b59eccce0d1/c.html
by Misbah Saba Malik, Deng Kaiyin
GWADAR, Pakistan, Sept. 30 (Xinhua) -- As the sea breeze swept through a vibrant forest just a few yards away from the bustling Gwadar Port, here in Pakistan's southwest Balochistan province, Muhammad Iqbal called out firmly from a corner, instructing his subordinates to water the plants carefully, making sure not to trample the delicate saplings.
For the 57-year-old fellow, who has been working with the port for the last 16 years, this friendship forest is not just a collection of greenery but a personal labor of love.
As one of the pillar projects of the China-Pakistan Economic Corridor (CPEC), the Gwadar Port has been operated by China Overseas Port Holding Company (COPHC) since 2013.
Launched in 2013, CPEC, the flagship project of the China-proposed Belt and Road Initiative, is a corridor linking the Gwadar Port in southwest Pakistan's Balochistan province with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, which highlights energy, transport, and industrial cooperation in the first phase, while in the new phase expands to fields of agriculture and livelihood, among others.
"This place was once barren, with nothing but dust blowing around all day," he recalled. "One day, a Chinese manager from COPHC told me that they were going to transform this land into a forest, and that is how it all began."
"We have selected tree species suitable for local climate with wind-breaking and sand-fixing functions for the greening project," said Wang Ruilei, who was in charge of greening at COPHC, adding that after joint efforts from both sides, more than 4,000 trees have been planted in the friendship forest in Gwadar.
The once-empty plot has now blossomed into a lush sanctuary, and the seedlings that Iqbal planted are now grown into strong trees providing beautiful scenery and fresh air to the people of Gwadar.
"As per our observation, the maximum ground temperature in a year used to reach 52 degrees Celsius, but now it is around 43 degrees Celsius," said Wang, "I am proud to say that I can feel the improvement of the local climate brought by the forest."
The forest has seen Chinese ambassadors to Pakistan and foreign ambassadors from countries like the Netherlands, Belgium, Germany, and the European Union to Pakistan plant trees during their visits to Gwadar, and each tree stands as a symbol of growing diplomatic ties between Pakistan and these nations.
Bilal Javed, Iqbal's subordinate who joined him a year ago, has been assigned the most crucial responsibility of nurturing the plants the dignitaries had planted.
"Iqbal is meticulous about these plants," Bilal said, adding that "they represent memories of our foreign guests, and we must ensure they flourish -- just like Pakistan's relations with China and these countries."
The 27-year-old said that the forest also motivated him and many other young people of Gwadar to replicate the good work and plant trees at their homes.
"Before this forest, this area used to be dusty and warm, but with all this greenery, the air feels cleaner and fresher," Bilal said, taking a deep breath as the breeze rustled the leaves of the trees overhead.
As a key component of the Chinese Ambassador's Green Employment Plan Project, the forest has helped promote local employment and increased farmers' income in Gwadar.
In a conversation with Xinhua, Allah Buksh, another forester in the forest, said the trees and shrubs planted in the forest have provided a large amount of feed for the sheep farm.
"Chinese staff has also taught local farmers techniques such as cuttings, grafting, scientific weeding, and fertilization to increase crop yields," he added.
The transformation of this once-desolate land into a flourishing forest has not only beautified the port area but has also sparked a green movement, making Iqbal plan to expand the forest of the kind to other parts of the city.
https://english.news.cn/20241104/759137d30165436e91c6f3416b0bf557/c.html
Affan Faiq Zada, Medical Superintendent: "We have seen drastic improvements in the health outcomes here. This hospital has been a blessing for the local community." The Pak-China Friendship Hospital is making a significant impact in Pakistan's Gwadar. #CPEC
100-bed hospital
900 patients seen daily in outpatient clinic
State of the Art equipment including CT Scan, Digital X-rays, medical lab etc.
https://youtu.be/cj8Q0cKHhpY?si=nBl4tUnYzDkOZih_
https://en.ndrc.gov.cn/news/mediarusources/202211/t20221103_1340804.html
ISLAMABAD, Nov. 1 (Xinhua) -- Pakistan's southwestern Gwadar district will be a hub of trade and investment in the future thanks to the China-Pakistan Economic Corridor (CPEC), Director-General of Gwadar Development Authority (GDA) Mujeeb Ur Rehman Qambrani said on Monday.
Addressing a special session on "Gwadar and the Road to Sustainable Development" organized by the Islamabad-based think tank Sustainable Development Policy Institute (SDPI), Qambrani said that the master plan of Gwadar smart port city envisions the development of an industrial base which will not only create a lot of employment opportunities but also promote tourism in the area.
The master plan is inspired by China's city of Shenzhen and the GDA is vigorously executing it for timely delivery, he said, adding that the master plan was finalized after collaboration between Pakistani, Chinese, and other stakeholders.
He said that Gwadar international airport being constructed with cooperation from China will be functional in 2023 and will enhance the development process of the district.
Hassan Daud Butt, senior advisor at the China Study Center of the think-tank, said that Pakistan-China cooperation on the CPEC and combating COVID-19 has transformed Pakistan's technological pace.
"China is building an enabling environment for business and economic opportunities in our country. Therefore, we must prepare ourselves to capture the opportunity," he added.
Also speaking at the event, Sajid Amin, deputy executive director at the SDPI, said that the development sector and civil society organizations can play a pivotal role as knowledge partners and in the advocacy of the immense socio-economic potential of Gwadar.
https://dailytimes.com.pk/1223991/chinese-firm-to-invest-2-billion-in-pakistan-for-deployment-of-optical-fiber/
According to a Gwadar Pro’s report, the cable will be laid from Karachi to Peshawar along the Main Line-1 (ML-1).
Pakistan Railways has inked an agreement with the company Sunwalk Ltd. to allow it to deploy optical fiber cable.
Pakistan Railways has stated in a statement that the Chinese company has deposited Rs205.60 million in advance.
A Pakistani company was also allowed the same facility, which has deposited Rs130 million in advance, Pakistan Railways said.
The agreements are for three years, which could be extended, it added.
CEO of Pakistan Railways Amir Ali Baloch signed the agreements on behalf of Pakistan Railways.
According to an earlier statement of Pakistan’s Ministry of Information and Technology, Sunwalk intends to invest up to $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over 8-10 years.
The company has already acquired a Telecommunication Infrastructure Provider (TIP) licence in Pakistan, and has also invested $5 million so far, according to the statement.
Freight Rail: Pakistan can be a beneficiary of BRI’s economic fortunes as Chinese companies are proposing an extension of China-Europe
Freight Rail from Kashgar, China inland city to Gwadar, port city of Pakistan.
“We expect there can be a rail network from Kashgar to Gwadar as it will benefit both China and Pakistan,” said Li Tao, Publicity department of China-Europe Railway Express Xi’an Assembly Line, according to Gwadar Pro.
During interaction with Pakistan’s media delegation in Xi’an, Li said that logistics between the two countries relys on a route from Kashgar to Pakistani cities through road transportation, but such bilateral trade volume driven by roadways is low and scanty.
Compared to rail, road transportation is quite expensive, difficult and slow due to traffic congestion and other road-related hiccups.
Most of Chinese companies are eager to see expansion of China-Europe Freight Rail from Kashgar to Gwadar, he further said.
“The Belt and Road Initiative (BRI), introduced in 2013, bolstered the China-Europe freight train service. The initiative enhanced trade and connectivity between China and countries along the ancient Silk Road, including Europe.
Consequently, the China-Europe freight train service has become a critical part of BRI, facilitating trade and fostering economic ties between the two regions,” he mentioned.
According to China State Railway Group Co., Ltd (China Railway), the freight train service network currently reaches 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries, covering almost the entire Eurasian continent.
Moreover, the trains have transported more than 1.08 million twenty-foot equivalent unit (TEU) containers of goods this year, up 11 percent yearly.