China's Bold Vision for Gwadar: A Special Economic District Transformation

China has proposed the establishment of a Special Economic District (SED) in Gwadar, advocating for a distinct set of laws and regulations inspired by China's successful Shenzen model, according to reliable sources. The Fourth Harbor Design Institute (FHDI), a Chinese company responsible for crafting the Gwadar Smart Port Master City Plan, suggests applying Shenzen's legal framework across the entire 1,201 square kilometers of the Gwadar Special Economic District (SED), diverging from Pakistan's existing regulations.

The comprehensive report generated by FHDI comprises 16 chapters, covering various aspects such as land use planning, urban and transportation infrastructure, energy management, water resources, socioeconomic development, environmental risk management, community engagement, and support for vulnerable areas. It also addresses the creation of a free port, property ownership laws, the institutional framework for the Gwadar Development Authority (GDA), government agency responsibilities, and financial management.

The report underscores four key areas of focus: the development of robust infrastructure to enhance Gwadar's global competitiveness, including transportation, housing, healthcare, and local workforce support. Additionally, it emphasizes the economic and governance framework, urban design, heritage preservation, and the integration of the local population into the initiative.

To boost Gwadar's attractiveness, the report recommends a more favorable financial incentive structure compared to other Special Economic Zones (SEZs) in the region. Specific measures suggested include preferential taxation, free currency exchange, energy cost deductions from taxes, and streamlined administrative processes.

In terms of city development, the plan outlines three stages: a short-term plan until 2025, targeting a population of 300,000 with a per capita income of $2,000; a medium-term plan spanning from 2025 to 2035, aiming for a population of 600,000 and a per capita income of $4,000; and a long-term vision covering 2035 to 2050, envisioning a population of two million with a per capita income of $15,000.

This draft proposal for the integrated Gwadar Smart Port Master City Plan will undergo approval by the Steering Committee before being presented to the technical committee for final recommendations to the federal cabinet.