Why Invest in Gwadar?

Introduction / About

The word “Gwadar” is a combination of two Balochi words—” Gwat” (wind) and “Dar” (gateway). The literal meaning of Gwadar is “gate.

CPEC is a pilot project of the Belt and Road initiative which aims to provide economic and social development to the people of the region. Pakistan is a significant partner for China as the geographical location of Pakistan allows China to link with Central Asian, Southern Asian, and Middle eastern regions for its exports and transport activities. The deep-sea Gwadar port of Pakistan also offers direct access for China to the Indian Ocean.

The Gwadar port is the most important part of the CPEC due to its strategic location. Gwadar is of great significance to China because of two major reasons;

  • The deep-sea port gives China long term access to the Indian ocean.
  • Reduction in transportation cost of oil coming to China from middle east due to the close proximity of Gwadar port to Persian Gulf.

Gwadar port is located on the top part of North Arabia sea. Due to its strategic location, it has the potential to connect China with 4 regions which are very rich in resources and thus provides the shortest possible transit to them. These four regions include South Asia, Central Asia, Iran and the Middle East.

Under the agreement for CPEC, China has been allowed a 40year operating and management lease of Gwadar port thus development of Gwadar is an essential point for the success of CPEC for China. Development of Gwadar is also linked to China’s larger plan of the development of Silk road economic belt (SREB) and a Maritime silk road (MSR) which will link China especially western parts to Europe and other continents for trade and cheaper transportation.

CPEC & The Gwadar Supremacy

China Pakistan Economic Corridor (CPEC) is a flagship project of China’s Belt and Road Initiative (BRI). China envisioned Belt and Road Initiative (BRI) in 2013. Under BRI, China aims to interact with the world at large for trade through the Maritime Silk Road and Silk Road Economic Belt.

Like highlighted earlier, CPEC is the core project of China’s BRI Initiative. The mega project provides the shortest route for trade to China with the Middle East, Central Asia, Europe, and Africa. As part of CPEC, China aims to connect Kashghar in the North-western region of China with Gwadar port in Balochistan via a land route comprising highways, railways, and natural gas and oil pipelines. CPEC is a mega-economic project that officially started in 2015 with $46 billion economic worth. Currently, its economic worth has reached $62 billion and is expected to exceed $70 billion soon.

The project has four phases for completion that comprise:

  • Phase 1: Early Harvest Projects (2015 to 2018)
  • Phase 2: Short Term Projects (2018-2020)
  • Phase 3: Medium Term Projects (2020-2025)
  • Phase 4: Long Term Projects (2025-2030)

Location Advantages

Gwadar holds geo-economic significance because of its location near International Sea Lines of Communication. That is why the development of Gwadar has a central position in the overall project of CPEC. A lot of developmental projects in CPEC are related to Gwadar.  China and Pakistan are collaborating under the recently prepared Gwadar Master Plan to turn the city into a regional hub for trade.

Once the development of Gwadar is complete, it has the prospect of taking over as the famous commercial and trading hubs in the region. Its deepest seaport gives it an added advantage over any other port regionally.

Gwadar carries a lot of lucrative investment opportunities for local investors across Pakistan. Because the city is at the cusp of becoming a regional trade hub, it is becoming a highly sought-after location for investors across Pakistan. The unbeatable potential of Gwadar and high prospects of future returns make it an investors paradise.

CPEC GWADAR Project Name

Estimated Cost (Million USD)

Gwadar East-Bay Expressway

168

New Gwadar International Airport

230

Construction of Breakwaters

123

Dredging of berthing areas & channels

27

Development of Free Zone

32

Necessary facilities of fresh water treatment, water supply and distribution

130

Pak China Friendship Hospital

100

Pak-China Technical and Vocational Institute at Gwadar

10

Gwadar Smart Port City Master Plan

4

Bao Steel Park, petrochemicals, stainless steel and other industries

Development of Gwadar University (Social Sector Development)

Gwadar Livelihood Project

Gwadar Master Plan

Gwadar is at the central stage of the $62 billion China-Pakistan Economic Corridor (CPEC) project, a flagship project of China’s Belt and Road Initiative.  Chinese state-owned company China Communications Construction Company in conjunction with Pakistan’s Minister of Planning, Development & Reform and Gwadar Development Authority has chalked out Gwadar Master Plan for the development of Gwadar. It’s an elaborate road map of how Gwadar is to become the economic hub of South Asia with a GDP per capita of $15,000 – 10 times that of Pakistan’s average.

Gwadar Master Plan envisions a wide city and suburban roads, shopping malls, hotels, recreation ventures, world-class education, and health facilities alongside top-class industry and business infrastructure. Moreover, as per the plan, Gwadar will have convenient global access by road, rail, air, and sea as well as cutting-edge Telecommunication Infrastructure connected to the Global Information Super-Highway. In short, Gwadar envisages Gwadar to be a “Global Smart City”.

Adventure

When one thinks of a vacation, the first image that comes to mind is that of the Sun, Sand, and the Sea. Now add Gwadar to the image, and you have a perfect vacation spot that surpasses many of the world-famous cities with sea resorts. Imagine a long drive on the coastal highway leading to Gwadar! Stretching for hundreds of miles along the coastline! Imagine a string of unsymmetrical mud hills and beautiful beaches along the way! Imagine an adventure of desert safari and thrilling sand skating! Imagine a desert night camping along with music and shisha! Imagine personalized snapshots of Gwadar’s mud hills, deserts, beaches, deep sea, natural landscaping, wide roads, markets, local culture, mega constructions, other places of significance and so much more!

Marine / Water Sports

In proximity to the sea, Gwadar carries a variety of Marine and Water Sports. Imagine a close-up of water birds’ folk, creating a scenic view over the marine landscape of Gwadar! Imagine the fun of blue water sports and deep-sea fishing! Imagine every kind of water sport like water polo, diving, swimming, sailing, rowing and sculling, canoe-kayak, flat-water racing, water skiing, surfing, scuba diving. In short, Gwadar will surely be a marine and water sports heaven once it is fully developed.

Tourist Destination

It’s a given that the location in which people choose to spend their precious vacation time speaks volumes about what they value very highly. Gwadar, by this criterion, is foreseen to become the world’s most extensively visited tourist sites. The city carries a lot in its lap for tourism.