How CPEC and Gwadar will change the regional trading dynamics

Almost 10 years ago, the city of Gwadar was planned to be turned into a large deep-sea port. And in the last 5 years Pakistan has made remarkable progress and it’s most notable venture the China Pakistan Economic Corridor (CPEC) has caught global attention. Gwadar’s port and the CPEC project now are of immense importance and valuable for Pakistan’s financial sector. The CPEC venture and Gwadar port have a huge potential and can transform Pakistan into a key trading player in the whole region.

            Experts believe once the projects under CPEC and Gwadar port is completely built, the trading dynamics of Pakistan will greatly change. It is obvious and certain that CPEC will give a huge boost to the trading and exchange activities of Pakistan.

Transportation for trade:
Various roads, railways and highway projects that are being built under CPEC, will increase connectivity within Pakistan, this will:
·        Greatly reduce the cost of transporting goods buy road.
·        Reduce time take for goods to be transported from one place to another.
·        Encourage companies to optimize themselves and make use of these highways and railways, thus boosting the country’s production of trading goods.
·        A considerable division of trading with China will shift towards use of roads.
·        While transporting by sea is moderately cheap, street transport is the least expensive.
Prior to CPEC more than 86% of Pakistan’s exports were traded by sea, the use of airports and land transport was quite less.


DEVELOPMENT OF GWADAR:
            Gwadar city is the starting point of the Economic Corridor, most of the trading that the country is going to experience will, be concentrated at its port. Chinese Overseas Ports Company will take control of the free trading zone on a 40 year lease, an attempt to further solidifying its foundation in the Gwadar zone, an entryway to oil-trading Gulf nations, and analysts believe the agreement is a shot for China to change the oil importing dynamics in the region. In fact Gwadar development authority is making sure the city is developed as fast as possible. GDA New housing scheme are being built, to provide the present and possibly future residents, a luxurious place to live. Experts believe the rate at which investors are buying property, if it continues; there won’t be any land for sale in Gwadar.


            In short all of these initiatives will prove to be quite fruitful for Pakistan, as they will decrease the cost of doing business in the country and improve its financial situation.

Comments

Post a Comment

Popular posts from this blog

How Gwadar emerged on the map

After a massive earthquake hit the coast of the Pakistani province, Balochistan and caused a major population cut down in 2014, it was barely noted what this calamity carried for the future as the whole Nation was occupied with distress and the untiring efforts to re-inhabit the victims of the flood preceded by sea storm. Later, however, mud volcanoes arose and after a few months of being a washed by sea currents, a rocky formation was seen to be forming above the sea tide. Following this, a few years later, the government of Pakistan realized the importance of the geographical location of this abandoned land and hired some builders to work for the construction of a sea-port, facilitating and actually opening the gates to international trade in Pakistan. The construction of this port was kept secret until it’s inauguration by the then Prime Minister of Pakistan in 2011. From then on, port Gwadar became the official sea route for both National and International trade, pavi...
Read more

Pakistan benefiting greatly from the Chinese friendship

There was a time when no one would have paid heed to the Gwadar land for sale , mainly because they were so ignorant of its mere existence. Lately, a lot of construction has been going on in Gwadar and many of it is now happily coming to a halt. Surprisingly to most so called regional authorities, China and Pakistan have together,  successfully accomplished a lot of the promised projects throughout the nation already and China’s involvement combined with the keen working interest in Pakistan clearly indicates the disturbance in the balance of power along with the hindrance to the formerly existing regional superiority in Asia. With the M8 Gwadar - RatoDero Motorway almost complete, the new Gwadar Airline service launched and the launch of Pakistan’s first beachfront housing project Oshun Eiwan, Pakistan’s economy as recently declared, is progressing rapidly with a per capita rise of 6 per cent annually. Originally launched for Gwadar Golf City, the airline now runs ...
Read more