How will CPEC help Baluchistan and other provinces of Pakistan

The China Pakistan Economic Corridor (CPEC) initiative is the largest economic venture that the country has ever done. This project which has an estimated value of $47 billion is surely going to prove as a game changer for Pakistan. Many of CPEC related projects are focusing on improving the port facilities at Gwadar and are also focusing on optimizing the road network.

The central objective of the CPEC is building a long highway which will start from Gwadar and end at Kashgar, which will be a distance of 3000Km. The CPEC also has various projects to combat the energy crises of the country.

While it’s a common misconception that CPEC is only focusing on developing Baluchistan and Gwadar, but the truth is that the CPEC project has plans to develop each province of Pakistan. Each of these sub-projects plans to benefit the entire provinces of the country. As private companies are acquiring land for sale in Gwadar they will build up the city with various commercial projects and improve the value of Gwadar property.

SINDH:

At Keti Bundar a project that will benefit Sindh, is known has the Keti Bunder Sea Port Development Project is to be built under CPEC. For generating power in Sindh Engro Thar Block II 2×330MW Coal fired Power Plant is being constructed that will initially supply 660MW of energy.

PUNJAB:

In Punjab an iron ore mining project is being built to extract natural resources in the province and a Steel Mills and process factory is also being constructed at Chiniot, Punjab. Other than these, energy projects such as Quaid-e-Azam Solar Park is being developed which will provide 1000 MW of energy.

KPK:

At KPK a major energy project is being built at a cost of $1,802 million known as the Suki Kinari Hydropower Station which being built at Naran, once completed it will generate 870MW of power.  Other sub-projects include upgrading the road network and infrastructure of KPK.To improve road connectivity the Chitral CPEC link road is built that will connect the Chitral region to Chakdara.

BALUCHISTAN:

A much needed project to solve the water problem at Quetta is the Quetta Water Supply Scheme from Pat feeder Canal which will provide fresh water to the population. The Naukundi-Mashkhel-Panjgur Road Project will connect various regions within Baluchistan.

With around 17 projects planned for Baluchistan, no doubt Baluchistan will get a major share in CPEC but it doesn’t mean it will not benefit the other provinces of the country.

The influence of CPEC on the Real Estate of Gwadar and its Port

China-Pakistan Economic Corridor is perhaps the most important financial venture in the history of Pakistan. With a staggering amount of $47 billion being invested into this huge venture, and will be a source of unlimited benefits for both of the involved countries. The main project which is connecting Gwadar to Kashghar via a 3000 Km highway is already being constructed. Other than the Economic Corridor there are various other CPEC projects of power, construction of infrastructure, communication and port upgrading.

CPEC Objectives:
1- One of the main objectives of the Economic Corridor is to enhance regional partnership and encourage countries running alongside the one belt one road to invest into this venture so that it may promote regional growth.

2- Improve the economic and security situation of Baluchistan and contribute to the economy of Pakistan.

GWADAR CITY:

When talking about Gwadar, these projects had a deep impact on the city and its real estate. The recent developments managed to attract many local investors, prompting them to invest in Gwadar property. This resulted in a rapid increase of the prices of commercial and residential land for sale in Gwadar. Ever since the agreement between the two countries was signed more than 40 GDA new housing scheme are being developed in the city.

GWADAR PORT:

The once sleeping fishing village and now Pakistan’s third deep-sea port is in the process of being upgraded as well. The COPHC is working tirelessly to improve the port facilities, and are adding and installing many new functions and terminals at the Gwadar Port. As of now the port only has 3 berths, the COPHC has planned to develop an additional 4 more berths in attempt to increase trading activity at the port. According to their long term plan, Gwadar port will have staggering amount of 150 berths by the year 2045.

The government itself is facilitating and closely supervising the development in Gwadar, and is ensuring rapid development of roads, highway, and basic life necessities such as water and electricity. It is the opinion of experts that if development keeps on progressing at this rate, the city will become an economic powerhouse.

What are some of the vital projects of Gwadar and Gwadar port?

In recent years Pakistan’s third port city better known as Gwadar has become increasingly significant for the country. What was previously a quiet sleeping village is now a rapidly developing city.

The China Pakistan Economic Corridor (CPEC) has also greatly contributed to the development of Gwadar and its port. This multibillion-dollar project is greatly benefiting the overall infrastructure of the whole country. Gwadar is being transformed into the land of opportunities; the massively unemployed population of Pakistan is in great need of job opportunities that will soon open up with the completion of CPEC and Gwadar Port. According to experts, more than 40,000 jobs are expected to open up all over Pakistan and especially in Gwadar. These advancements in Gwadar are greatly affecting the value of land in Gwadar, and are causing a surge in Gwadar property prices.

The government of Pakistan is working towards making it a major city and is developing various projects for the betterment of the city.

1- The Government of Pakistan has allotted Rs.63 billion for a railway track of 965Km starting from Gwadar and will pass through various regions of the country e.g. Turbat, Rato Dero, and many other cities.

2- A 715km long highway along the Makran Coast has also been constructed that will connect Karachi to Gwadar.

3- The Government is investing further billions in the project to add more manpower to speed up the building process of the port and CPEC project.

4- The Government of China is investing more than Rs.13 billion to build Gwadar Megaport City; its development is prioritized and is anticipated to be an enormous project.

5- The COPHC is overseeing the development of three large multipurpose berths that will expand the trade operations of the Gwadar port and make it a step closer to being a port of global standards.

The Gwadar real estate as previously mentioned is experiencing a lot of activity and more than 50 luxurious housing projects are being constructed to improve the living standards of the residents currently living and also for those who might settle there in the future.

How is CPEC optimizing Gwadar and its Port to enhance the country’s economy?

About just a decade ago, when the plan to build and develop a deep sea port at Gwadar was announced, investors immediately saw it as a very profitable market and a golden opportunity for Real Estate investment. Since then Gwadar went through a lot of development in infrastructure, transportation, communication and facilities. Gwadar now has a functioning airport and a railway system as well.

Then after announcement of the China Pakistan Economic Corridor (CPEC), Gwadar became the center of attention in the whole region. With over 30 projects announced and widespread development throughout Baluchistan, Gwadar’s importance increased even further. According the CM of Baluchistan Sanaullah Zehri CPEC is the financial jugular vein of the country and specifically Baluchistan, which will earn the most profit out of this venture. Other than that he insisted that major businesses and companies should come forward and invest in Gwadar.He further added “This is the right time to invest in Gwadar because property value is affordable. If immediate investment is missed, property value will be much higher and could become unaffordable soon.”

This is absolutely correct because currently Gwadar is most preferred and fruitful market for Real Estate investment and that is due to a number of reasons.

Government Incentives:

The Government is really focusing on the development of the region, and in order to attract investors, the govt has establish special zones and has declared tax amnesty in these special zones, along with subsidized electricity rates.

High investment returns:

According to DAWN news, the revised policy and incentives offered by the Govt resulted in a 100% increase in the value of the landfor sale in Gwadar.

  

Development on modern grounds:

Gwadar as of now is being developed in a completely modern way, with state of the art facilities, and is following a plan to be the future city of economics for Pakistan.

Highly Secured environment:

With the efforts of the Pakistan Army, the instability in the region has decreased significantly and the region is now safer than ever and completely habitable.

Premium Housing Schemes:

Another reason the prices of Gwadar Property, will be sky high is because of the housing schemes that are being developed, not only are they luxurious, they are also available at reasonable payment plans. Once completed the value of the land will increase massively.

The importance and significance of Gwadar and its port

Pakistan’s third deep-sea port at Gwadar has caught the attention of the world, and is set to make a huge impact in the country’s economy. The port which was constructed and operational in 2007 was handed over to the Port of Singapore Authority. The port however was severely mishandled and was largely neglected, with hardly any development.

But in 2013 the port was handed over to China Overseas Port Handling Company (COPHC), and that is when a series of development were started in the area. Then with the CPEC project being announced the significance of the port increased even more. It is now Pakistan’s most prized and valued venture for numerous reasons.

- Gwadar Port is warm water deep-sea port which will be able to cater to large container ship, all year round.

- China has already constructed the first phase of the Gwadar port at cost of $248 million, and has already started on the second phase which will introduce massive upgrades at cost of $1.6 billion.

- The Gwadar Port is also being built to promote Pakistan at a social level and to revive tourism in the country.

- The Port and the CPEC project are set to eradicate unemployment and offer more than 100,000 jobs in all of Pakistan.

- Gwadar port will be the center of three major trading locations, which are Central Asian, Gulf States and South Asian nations.

- Giant Pakistani companies have invested in Gwadar property which will plan to build various commercial buildings in the city.

Gwadar is supremely located on the western side of the coast of Baluchistan and is on the opposite end of the Gulf of Oman which is a permanent and important course for transporting large number of oil tankers, to the western and eastern countries.

Pakistan will most likely receive overflowing amount of trading goods from China and Central Asia, and they will make their way to Gwadar which will be the main overland trading route. Pakistan could potentially earn huge amounts from handling various payloads, maintaining and re-fueling tankers, imposing charges for trading and cargos. Due to these numerous reasons many global investors are interested in land for sale in Gwadar, with plans to build this city into Pakistan’s next business center.

The Bilateral Relationship of China in global trading and economics

The China Pakistan Economic Corridor (CPEC) is a multi-billion dollar venture which has the potential to change Pakistan’s fate, and can set the country on a course of advancement. It has the potential toenhance the crippling economy and trading; improve Pakistan’sregional activities and connections.

The various energy projects that are to be built under CPEC will also resolve the energy crises that Pakistan has been facing. The province of Baluchistan is also planned to go through a lot of development, in terms of infrastructure and road networks. In fact some of the projects have already started, and started increasing the value of land for sale in Gwadar. In any case, now, China is assuming a central trading role not only in whole of Asia, but the whole world. Having the biggest population in the world, China is also rapidly becoming the world’s biggest economy as well.

So the main objective of China and Pakistan are focusing their combined efforts to re-establish the Old Silk road, which is one the most notable old trade routes, which will run from Gwadar (Pakistan) to Kashgar (China).

China’s CPEC project plays part in even a bigger project known as the ‘One Belt One Road’, this project has a total net value of $ 21 trillion, and through this China has wishes to connect various countries and regions. This way Pakistan will also participate in this global scheme and will have new trading markets.

China-Pakistan Bilateral Trading& Economic ties:

Over the year both countries have made strong ties, and have established bilateral economic and trading ties. Pakistan and China have been cooperating over the years in many fields with each other. China is in fact one of Pakistan’s biggest partner for the exporting and importing of goods.

Now the CPEC project will maximize the trade in the country and expand sustainable development scope of Pakistan. The various investments being made by China will increase the $ 247 billion GDP of Pakistan by at least 15%. This will prove to be very advantageous for Pakistan in the future.

Implications of Gwadar’s port and the CPEC

Pakistan’s third deep-sea port at Gwadar has caught the attention of the world, and is set to make a huge impact in the country’s economy. The port which was constructed and operational in 2007 was handed over to the Port of Singapore Authority. The port however was severely mishandled and was largely neglected, with hardly any development.

But in 2013 the port was handed over to China Overseas Port Handling Company (COPHC), and that is when a series of development were started in the area. Then with the CPEC project being announced the significance of the port increased even more. It is now Pakistan’s most prized and valued venture for numerous reasons.

1- Gwadar Port is warm water deep-sea port which will be able to cater to large container ship, all year round.

2- China has already constructed the first phase of the Gwadar port at cost of $248 million, and has already started on the second phase which will introduce massive upgrades at cost of $1.6 billion.

3- The Gwadar Port is also being built to promote Pakistan at a social level and to revive tourism in the country.

4- The Port and the CPEC project are set to eradicate unemployment and offer more than 100,000 jobs in all of Pakistan.

5- Gwadar port will be the center of three major trading locations, which are Central Asian, Gulf States and South Asian nations.

6- Giant Pakistani companies have invested in Gwadar property which will plan to build various commercial buildings in the city.

Gwadar is supremely located on the western side of the coast of Baluchistan and is on the opposite end of the Gulf of Oman which is a permanent and important course for transporting large number of oil tankers, to the western and eastern countries.

Pakistan will most likely receive overflowing amount of trading goods from China and Central Asia, and they will make their way to Gwadar which will be main overland trading route. Pakistan could potentially earn huge amounts from handling various payloads, maintaining and re-fueling tankers, imposing charges for trading and cargos. Due to these numerous reasons many global investors are interested in land for sale in Gwadar, with plans to build this city into Pakistan’s next business center.

How will government incentives and exempts promote growth in Gwadar and its port?

The governments of China and Pakistan are working tirelessly to develop Pakistan’s third deep-sea port at Gwadar and to expand its operations to make it a port of international standards.

The Government has likewise taken a step to make Gwadar port duty free port in order to attract more investors and traders. This will create new opportunities and establish a firm foundation for the shipping industry at Gwadar.

The Gwadar port is being built to accommodate plenty of imports and exports, so that it may become a trading hub in the region. The Gwadar port will also have transit trading cargo facilities for other countries that may center their trading activities here, and so the government will also offer huge cuts in dues pertaining to the use of the port.

Pakistan is offering huge exemptions and incentives that will promote the growth of business in the city and the port. Some of the exempts are on:

1- General sales taxation

2- Withholding tax on the importing of ships and other sea vehicles

3- Custom tax on trading goods

4- Minimal taxation on trading

As Pakistan’s shipping sector is quite underwhelming compared to other countries in the region, these exempts and incentives will surely attract global and local investors. Previously the private sector had little participation in Pakistan Sea trading and shipping industry but analysts believe that this situation may change. In fact, investors have already started entering in Gwadar’s market, investing in assets like land which led to an increase in Gwadar property prices.

The inception of China Pakistan Economic Corridor (CPEC) project will also greatly boost the trading activities as once completed; Pakistan will receive huge amounts investment from countries such as China. The Chinese who’ll utilize Gwadar port will bring in an industrial revolution and invest in the form of machinery, personnel and easy loans that’ll transform the city of Gwadar into a mega city which will be an economic and cultural hub. Luxurious housing schemes like Gwadar Central are building up the residential sector of the city that will soon cater to the large population of civilians.  

How has Gwadar Port and CPEC Helped in Increasing Pakistan’s Growth Rate?

Pakistan’s latest and biggest venture China Pakistan Economic Corridor (CPEC) has started an era of economic growth and progress in Pakistan. China is now investing huge amounts of resources worth billions in the CPEC project.

Gwadar port has central importance in this multibillion-dollar project. The port which is now being built and supervised by the COPHC will play a huge role in making the CPEC project successful and will also be responsible for the socio-economic development of the Baluchistan province and ultimately Pakistan. Many infrastructural projects like Gwadar east-bay expressway and the New Gwadar International Airport are being built on a priority basis and will soon be operational. These infrastructural advancements are necessary for the growth of Gwadar itself. Several other subprojects under CPEC are also contributing to the advancement on a provincial level.

Due to the CPEC project, experts believe that there would be over 500,000 different kinds of jobs created all over Pakistan, though a major concentration will be present in Gwadar. This will also amplify the country’s GDP growth rate by adding another 2.5% points to the current GDP growth which is 5%.

Having a GDP of 7.5% and being a future trading hub would further increase the importance of Gwadar city and expand the operation and activity at its port. Private projects in the residential and commercial sectors of Gwadar would make the city habitable and provide its residents with basic necessities. The desalination plant and various energy projects that will provide over 10,000 MW of energy are being built to facilitate the population residing in Gwadar. The government has also offered local and global investors land for sale in Gwadar.

Luxurious housing schemes which are being supervised by the Gwadar Development Authority are built by various private Real Estate companies, that aim to transform Gwadar into culturally and socially advanced city. These advancements made Gwadar a very profitable city to invest; many people saw this as a golden opportunity and invested in land thus raising the value of Gwadar property prices.

How will CPEC and Gwadar Port boost the trading exports and local industries of Pakistan?

For many years the economy of Pakistan was suffering and was quite unstable. With minimal development, Pakistan wasn’t making any kind of economic progress that would benefit the country’s financial situation. However, after the initiation of the multibillion-dollar project known as the China Pakistan Economic Corridor (CPEC), the country started making progress. Trade with China increased manifolds even though the project hasn’t been fully completed.

The trade between China and Pakistan is valued in billions; it is valued at approximately $12 billion out of which Chinese exports to Pakistan are valued at $9 billion while Pakistan imports to China are $ 3 billion. According to analysts, the CPEC contributed to an increase of more than 10% in the bilateral trade between the two countries. Developments in sectors of manufacturing and advancement in the country’s infrastructure have made the positively contributed to the Pakistan’s growth.

Another main focus of both countries is the deep-sea port at Gwadar, as it is the starting point in the whole CPEC project. The Chinese have taken it as their mission to build up the city of Gwadar and transform it into a modern world city. As for the Gwadar Port, the COPHC is rapidly developing the infrastructure of the port and is building it on international standards. Experts believe this will benefit the city in numerous ways and will attract a lot of international and local business. China will be utilizing the port as well for importing and exporting. Pakistan will earn immensely once China starts importing large quantities of fuel and utilizes the port to export to European and Middle Eastern markets. As many people noted the rise of development in the city, this led to a large-scale acquisition of land thus leading to a rise in Gwadar property prices.

Lastly, the SEZ which is being built near Gwadar will skyrocket production of goods and also start increasing the exports of various Pakistan’s products such as rice, garments and also ceramic. The Gwadar Real estate sector is also quickly building up the city as it is sure to experience rapid development and an influx of people all over from Pakistan.