Revitalising Gwadar: A Modern Hub through the Belt and Road Initiative
China's expertise in economic development, coupled with strong local support, is set to transform Pakistan's Gwadar region into a thriving city as part of the Belt and Road Initiative (BRI) and a window into China's modernization. It's poised to stand out as a flagship project within the China-Pakistan Economic Corridor (CPEC), according to the former chairman of China Overseas Ports Holding Co, Zhang Baozhong.
Zhang drew parallels between Gwadar and Shenzhen, which China transformed into an economic powerhouse and special economic zone in a mere four decades. The operator of Gwadar Port, China Overseas Ports Holding Co, has played a pivotal role in developing the port and its associated free trade zone.
P.c. Faisal Hanif
Pakistan recently marked the 10th anniversary of CPEC, a key initiative under the BRI. Highlighting the port's significance, Pakistani Prime Minister Shehbaz Sharif reaffirmed the government's commitment to turn Gwadar into a world-class port and encouraged Balochistan Province to support foreign investors.
Over the past decade, China and Pakistan, as steadfast strategic partners, have forged economic cooperation through the BRI, contributing to Pakistan's national strength incrementally, mainly by fostering secure development areas and leveraging them as economic engines.
The Gwadar Free Trade Zone (FTZ) exemplifies this strategy. Starting as a concept before 2015, it has now attracted around 20 companies, spanning banking, insurance, logistics, food processing, and aquaculture, with a combined investment of 3 billion yuan, generating 1,200 jobs.
Within the FTZ, companies like Henan Yulin Holdings and China Linyi Trade City Co have invested in research centers and warehousing facilities, while Ningbo Huilong Co established a profitable metal processing plant in 2022.
Beyond the FTZ, Chinese firms, such as CREC and CCCC, have constructed an international airport and expressway connections, laying the groundwork for a sprawling economic belt, transforming Gwadar from obscurity into a modern coastal city.
Despite Western media critiques of slow progress, Chinese builders have continuously advanced Gwadar's development, even in challenging security conditions. The port's functions have evolved since 2006, making it an investment hotspot in the northern Indian Ocean, attracting interest from Saudi Arabia and the UAE.
Chinese involvement in Gwadar has yielded positive results, such as accommodating larger vessels, providing technical training, and facilitating trade for Central Asian countries. Chinese companies adopted a cautious, step-by-step approach in construction, setting a model for other BRI projects.
As Gwadar's infrastructure improved, the resident population surged from 80,000 in 2013 to 220,000 in 2023. The long-term vision includes transforming Gwadar into a smart port city by 2050, with a population exceeding 1.7 million and an annual GDP of $30 billion.
Chinese residents in Gwadar witness the warmth and support of the local community daily, fostering optimism about Gwadar's future under the guidance of Chinese companies.