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  #31  
Old Tuesday, April 25, 2006
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Post China agrees to finance further deepening of Gwadar seaport

JAKARTA, April 23 : Chinese President Hu Jin Tao has conveyed Beijing's agreement to President Pervez Musharraf on financing further deepening of Gwadar deepport in Pakistan's southern province of Balochistan.

China will finance the project from the remaining preferential buyers' credit of US dollars 500 million extended to Pakistan.

Meeting on the sidelines of the Asian-African Summit yesterday, the two leaders expressed satisfaction with the state of bilateral ties including the outcome of Premier Wen Jiabao's recent visit to Pakistan.

Hu Jin Tao said the Treaty of Friendship concluded during the Chinese Premier's visit, is the first of its kind Beijing has with any South Asian country. This will further develop relations of 'strategic cooperative partnership' between the two long-standing
allies, he said.

President Musharraf said Pakistan looks forward to having greater access for its products to China's expanding market. This, he said, would help augment trade and also
address imbalance in bilateral trade.

The two leaders also exchanged views on regional and international issues of common interest including the UN reforms.

President Musharraf briefed the Chinese leader about his just-concluded visit to New Delhi, during which he had substantive talks with the Indian leadership for resolution of outstanding issues including lingering Jammu and Kashmir dispute
Source: gwadarnews.com

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Old Wednesday, April 26, 2006
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Post US will not like significant Chinese presence in Balochistan’

Leading political analyst Dr Syed Jaffer Ahmed has said the United States will not appreciate “significant Chinese presence” in Balochistan and in future if an operation is conducted by the United States against Iran, it would like to have a safe haven back line in Balochistan.

In an interview with Daily Times on Friday, he said: “This time around Balochistan has again attained a strategic position in the region. The United States is fully entrenched in Iraq and has virtually occupied Afghanistan, but now Iran is out of the American influence. It appears that in future Iran will come under severe pressure and the American establishment has explicitly made it known that to it Iran is part of the ‘axis of evil.’ So in future if some operation is conducted against Iran by the US, it would like to have a safe haven back line in Balochistan like it used it against its attack on Afghanistan and the Taliban regime.”

With an area of 3,47,188 square miles that is larger than the combined area of Punjab and Sindh, Balochistan comprises 44 percent of Pakistan, and has an 800km-long coastline and the province enjoys immense geo-strategic importance since it is the hub between South Asia, West Asia (Middle East) and Central Asia and shares 1,173 km-long border with Iranian Balochistan, and 837 km-long border with Afghanistan.

“The potential for trouble for the United States if the Bush administration acts aggressively towards Iran is enormous,” warns Juan Cole, the widely-quoted Middle East historian. “It could turn the Iraqi Shiites and the Afghan Hazarahs decisively against Washington. An Iran in chaos similar to that in Iraq would be three or four times the problem for the US and the world than Iraq is,” Juan Cole has been reported to have said.

“There is another aspect of Balochistan’s strategic importance and that is the role China is playing in the construction of Gwadar Port and other similar projects. In this scenario the situation in Balochistan attains complexity and the government of Pakistan faces a gigantic challenge in containing the renewed Baloch aspirations and demands and in keeping Balochistan away from international political tussle,” Dr Ahmed said.

“There is a strong need to resolve the issues politically and starting a genuine political process, involving all the major political parties of the country. One would also suggest that a joint session of the parliament be convened at the earliest and a threadbare discussion on Balochistan issue be held there,” he said. Recalling the military operation in Balochistan in the 1970s, he said: “In the 1970s the Shah of Iran acquired an important role in the region and emerged as a regional policeman, safeguarding American interests. After the overthrow of Zahir Shah in Afghanistan, tensions between Pakistan and Afghanistan grew which were aggravated by the Shah’s interests. The military operation in Balochistan in the 1970s had the full backing of Iran to the extent that Iranian helicopters were used in the operation and at one point Shah’s twin sister, Princess Ashraf Pehlavi, paid a visit to Balochistan,” Dr Ahmed said.

He said Balochistan had been always important due to its strategic importance. “Balochistan always had a very important strategic position. During the British period, it constituted the border of the British Raj and the British devised a very well thought-out policy regarding it, making Balochistan a secure borderline between itself and Russia

“As a result of this policy, military cantonments were built in Balochistan and advanced defence infrastructure was created. “After the British rule, Balochistan continued to have its strategic importance in the context of the Cold War. It was assumed to be a buffer between the Soviet Union and the Arabian Gulf. Expecting that the Soviet Union would aspire to reach the warm waters, Pakistan, at the behest of the US, accepted to play a role of containing the communist threat which also implied the containment of Baloch nationalists’ aspirations,” he pointed out.

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  #33  
Old Wednesday, April 26, 2006
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Post 'US not against Gwadar port construction'

ISLAMABAD April 22 : United States has shown no mal-intentions against the construction of multi-billion Gwadar Port negating the impression created by some quarters to hamper Pak-US relations. US Ambassador to Pakistan, Ryan C. Crocker called on Federal Minister for Ports and Shipping, Babar Khan Ghouri in his office and discussed with him matters of mutual interests related with ports and shipping. Speaking on the occasion, Crocker said there are merely rumours that US do not like the construction of Gwadar Port.

He wished that the port would be a successful venture for local, Americans and other foreign investors. He was also very much convinced about the projects launched by the present regime for the improvement of ports in Pakistan.

Crocker was of the belief that the facilities of trade for Afghanistan and Central Asian Republic States would be increased manifold after the construction of Gwadar Port.

Speaking on the occasion, Babar Ghouri informed Crocker about the development of ports and shipping sector undertaken by the present regime. He said that Gwadar Port has been constructed to enhance the business activities for Afghanistan and Central Asian Republican States. With the construction of the port, he was of the view that not only the transhipment and trade transit for Afghanistan would be reduced but also the poor masses of Balochistan would be benefited in many respects.

The minister assured that the government of Pakistan would extend every possible facility to the investors from America at Gwadar Port. Its first phase is ready for operation soon.

Ghouri told the US ambassador that the government has given a lot of incentives to attract local and foreign investors ie special economic zone has been constructed which is free from all kind of taxes.

The government has also launched certain projects at Port Qasim and Karachi Port ie Port Tower, Water Jet, Industrial Park and World Trade Centre.

He said that a space for the construction of American Consulate at Karachi would be made available shortly. Scanners have been installed on the ports at Karachi from security point of view as well as timely clearance of cargo by the respective department.

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Post US interested in development of Gawadar Port

US interested in development of Gawadar Port: Crocker
ISLAMABAD, May 19 (APP): The US Ambassador to Pakistan, Ryan C Crocker Wednesday said his country was interested in development of Gawader Port as it would increase economic development in Pakistan and also in the entire region. Speaking to the business community at Islamabad Chamber of Commerce and Industry, he said the United States wanted to facilitate Pakistani businessmen in the USA as both the countries have strong and productive business ties. About the Pak-US Investment Treaty, he said the third round of the treaty would be held in Washington in September.
He said the United States wanted active and productive economic ties with Pakistan as major US retailers were taking keen interest to invest here. The exports of Pakistani goods to USA have recorded seven per cent increase during 2004-05, showing that the economy was moving in the right direction, he added. The envoy said US investment in Pakistan was increasing and the potential was far greater in the years to come. Crocker said it was encouraging that the present government of Pakistan was providing strong support to foreign investment, adding that progress on intellectual property rights and Anti Money Laundering Law, which were in the parliament, would help resolve the concerns of the US companies. He said the US government was providing assistance to the US businessmen to invest in Pakistan.
He said the US would provide US$ 300 million during the current fiscal year to Pakistan for poverty reduction, health, education and social sector. Crocker said the US government was fully aware of the necessity to engage itself with the private sector. He said with the help of ILO, the USA was providing funds to Sialkot Chamber of Commerce to help resolve the issue of child labour in Sialkot. Ryan C Crocker said the consortium of 50 US companies which was working to invest one trillion dollar in the world has also shown its interest to invest in Pakistan.
The United States has also provided $75 million to Higher Education Commission for post graduate studies for Pakistani students in the USA. He said such moves would encourage people to people contacts as these students were the unofficial ambassadors of Pakistan in the USA and who would ultimatly come here to contribute in the development of their country. He said the United States gave top priority to enhance economic and commercial ties with Pakistan. The CEO of OPEC recently visited Pakistan and they are spending $ 300 million to assist US companies in Pakistan. Lauding the role of Pakistan as a front-line state in the war against terrorism, he said, the US wanted to build long term multi-faceted relationship with Pakistan.
He said being the strategic partner, President Bush during President Musharraf's visit to the US in 2003 announced $ three billion assistance package for Pakistan, he added. Realising the role of Pakistan, he said the USA would provide advance version of F-16 aircraft to meet the defence requirements of Pakistan. Praising the arrest of Abu Faraj Hashim, the US envoy said, it was a great success and the US applauds it as it would discourage the motives of terrorists network. About the problems of Pakistani businessmen travel to the USA, he said, the 9/11 incident changed a lot of things in the world in general and particularly in the USA.
"We want to encourage visitors to the USA and we are going to streamline it," he added. The US envoy assured the business community that access to commercial counsellor section, visa and security related issues would be discussed to ease business travel to USA. Earlier, President of Islamabad Chamber of Commerce and Industry, Tariq Saddiq in his welcome address informed the US envoy about the problems being faced by the business community of Pakistan with the implementation of WTO. He said after elimination of quota regime, from January 1, 2005 Pakistan's textile and clothing sectors, which is 70 percent of its trade with US has come under tremendous strain and called for more concessions.
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Old Wednesday, April 26, 2006
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Thumbs up Gawadar port to be completed ahead of schedule

The Gwadar port project will be completed six months ahead of schedule. This was stated by Federal Minister for Communication, Senator Ahmed Ali, while addressing a press conference here on Wednesday. He said the government and the Chinese company were trying their best to complete the project at the earliest. He said the port activity had already started and four ships had left after off-loading 10,000 tones of material at Gawadar, wihch showed the channel had become deep enough for movement of ships and now only a jetty was required which was being constructed speedily. He added that the roads in the port zone would be completed within a short time and the government was also taking up a de-salination project there. "Within two years, Baluchistan would be fully linked with the Northern areas of the country", the minister said.

President Pervez Musharraf, he said, was keen to see that a truck leaving the Karachi port Trust reached Kohat within 24 hours. He said the truck movement on roads was the best indicator of economic activity in a country. He said the KPT had been asked to construct a bridge to the Northern Bypass and the work on it would start soon. To a question, the minister said the shipping sector was mainly faced with the cargo/freight problem as a ship under the Pakistani flag was barred from touching Indian ports and no businessman would bring a ship under the Pakistani flag unless he got load. The situation, he said, would change only when relations between Pakistan and India improved. "From day first, when the new era of improved relations with India will start, the economic activity will gear up and private companies will bring their new ships under the Pakistani flag," he said. The communication minister said there was big potential in the oil sector and the government had singed many contracts with local refineries. He informed that the PNSC had a fleet of 13 ships which had failed to earn that much as a single oil tanker did. " We bring oil by a contract tanker which gives us a good amount of profit to meet the expenses." The minister appreciated the efforts by the PNSC chairman to turn the organization into a viable and profitable enterprenuer. About the purchase of oil tankers by PNSC, he said, the process was near completion as quotations had been received and bargaining with the leading foreign companies was continuing. He said the PNSC would have acquired tankers earlier, but after the Iraq war the matter was delayed because of reluctance on part of the companies, and now negotiations had been re-started with foreign companies of good repute for acquisition of tankers and "hopefully we will have good news within three months".

Replying to a question, the minister noted that the KPT needed some correction specially on the financial side as it had failed to attract business. "Its berths remain unoccupied due to high cess which can be reduced only with a cut in overheads. He specially referred to the KPT's labour cost against their insignificant contribution as, he observed, much of the operation was mechanized/automatic. He said rupees one billion were spent on the KPT labour annually, and another billion on the Dock Labour Board. He said that a KPT driver drew Rs25,000 as monthly salary, while a sweeper's salary was Rs17,000. The minister said that a golden handshake scheme for KPT employees was in the offing to rid the port from the unjustified burden of operational expenses. "The golden handshake scheme is on my table. It will be announced soon after a careful study and revision for the maximum possible benefits of the employees. I hope that each person will get at least 800,000 rupees," he said. The federal minister announced that no person would be given extension after completing 60 years of service as the government wanted them to be replaced

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Old Wednesday, April 26, 2006
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Post Pak & China r trying to complete the development of strategic gwader deep seaport

ISLAMABAD: Pakistan and China are trying to complete the development of strategic Gwadar Deep Seaport ahead of schedule.

Liu Huaiyuan, President of China Harbour Engineering Corporation (CHEC), met Shaukat Aziz, Adviser on Finance here on Monday to discuss related issues. "Given the strategic importance of the port, the government of Pakistan desires its early completion," stated an official announcement after the meeting.

The visit of CHEC team was a follow-up of recent meetings in Beijing during the visit of Prime Minister Jamali. There were reports that Chinese were very keen to expedite the pace of development, as it offered excellent opportunities of trade, and strategic depth, with the Central Asia, Gulf, Afghanistan and other regional states.

Liu assured the government that CHEC had mobilised all resources to achieve timely completion of the phase-I. There were reports that two sides were interested in expanding some of the infrastructure on an early date, due to strategic point of view.

According to a press note of the Ministry of Finance, the Asian Development Bank was coordinating convening of a conference of Central Asian States, including Turkmenistan, Tajikistan, Uzbekistan, Afghanistan and Pakistan to facilitate construction of the port-related infrastructure, effectively linking Gwadar with other regional countries to promote transit trade.

The first phase of the Gwadar port at a cost of Rs 14.905 billion ($250 million) was being built with the Chinese assistance, valuing Rs 8 billion as foreign exchange component. Opposite to the Straits of Hormuz and on the mouth of the Gulf, Gwadar Deep Seaport is of a great strategic importance. It can provide port, warehousing, trans-shipment, and industrial facilities for trade with over 20 countries.

To exploit the real potential of the port multi-billion dollar investment would be required over the next few years. Gwadar Port project would also provide much more options to the Pakistan Navy, as it was 234 nautical miles away from Karachi, and could alleviate threat of naval blockade in case of any eventuality in the region.

Experts believe that even one Agosta 90B submarine deployed at Gwadar could defend the port due to its geographic advantage. Given the resource constraint and existing investment climate, huge investment on a port was always going to be an ambitious thinking. However, Chinese involvement, with support through soft financing facilities could facilitate the process.

In trade terms, some estimates suggest that maritime traffic in Pakistan would increase three-fold in the next decade. The existing two ports of Karachi and Bin Qasim would not be enough to handle this increasing traffic. At present 98 per cent cargo traffic goes through the Karachi port. Despite some ongoing modernisation and development operations at the Karachi port, the fact that it was the only main sea route served as a disadvantage from strategic point of view.

In case of a regional conflict, this limitation could effectively choke the whole sea traffic of the country. In this context, Gwadar Port was of great significance. The port was also economical, in terms of accesses to maritime trade for the northern region of Pakistan.

Establishment of industrial zone, oil storage and refining facilities adjacent to the Port, and export possibility of abundant mineral resources of Balochistan, particularly from Saindak Copper-Gold Project, makes it more attractive. The Saindak project had also been leased out to a Chinese firm.

There was a huge scope of trans-shipment, handling of dry and liquid cargo and development of new container terminals at Gwadar. The government, with the help of Chinese authorities, and through active participation of the private sector, plans to develop new Container Terminal, Dry Bulk Cargo Terminal, Grain Terminal, Oil Terminals and deep channel dredging facilities. There was a possibility of seeking private sector investment on Build, Own and Operate (BOO) basis, or BOT basis for future expansion plans.

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Old Wednesday, April 26, 2006
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Post The Environmental Effects Of Gwadar Deep Sea Port

19.03.2006
THE ENVIRONMENTAL EFFECTS OF GWADAR DEEP SEA PORT A RECIPE FOR ECONOMIC DISPLACEMENT FOR THE PEOPLE OF GWADAR

By Ahmed Baloch

During my stay in Melbourne Australia, I came across with a news item that Authorities in Melbourne decided to start the dredging of Port Phillip Bay (further expansion of the port) before completing the environmental assessment of it. This action of the Govt. resulted in the wide spread protest by environmentalists, local fishermen and other organizations. Protestors even did not care about their lives and went in front of the dredging ship with their small boat. Environmentalist and fishermen went to seek an injunction from Supreme Court to stop the dredging work, as under the Environmental Effects Act, the project can’t start because the environmental assessments are still under way.

This news item raised a question in my mind whether the environmental assessments of Gwadar deep see port was done before the work started or not? If not who is going to protest against it? Who is going to Supreme Court to stop the work there?
Is there any Environment Effect Act which will provide legal ground through which someone go to the court of law to stop this project?

I am damn sure; no such assessment was done for Gwadar Deep Sea Port. The unfortunate thing is, there is nothing such as Environment Effect Act in Pakistan on the basis on which any legal action can be initiated against this project. Any protest will be illegal and protestors would have to face security agencies that hardly care whether the protest is legitimate or illegitimate.

The second thing that I thought over on the news item of dredging of Port Phillip Bay was why there are so many hue and cries for environmental assessment of the project. Mind you that was on a trail 9 week dredging exercise of Port rather than a full pledge project like Gwadar Deep Sea Port.

Any mega project carried out, whether on land or sea, can have negative ecological system, which is the lifeline for all species on that particular land or sea. If this natural system is disturbed, it can be a disaster for the marine life on which the livelihood of 90% people of Gwadar is dependent. Only an environmentalist or a marine biologist can comment on the natty gritty of this issue. I will talk about some of following environmental effects, which are already visible and are ground realities:

1. some of the species of fish and shrimps which fishermen used to catch have already vanished.

2. On the Eastern Bay (Dimi Zir) where the deep-sea port is planned, a big area of sea along with Koh Bahteel is captured by dumping the dredged sand. Consequently, the thrust or pressure of the sea on the eastern side of the Gwadar city has increased considerably which would result in land erosion along the eastern coastline. In order to stop this erosion, a stone barrier is erected along the eastern coastline. This barrier not only destroyed the beauty of the beach but also left no place for the fishermen to take out their small boats for usual maintenance work.

This maintenance work is absolutely essential for these boats from any wear and tear. Now the fishermen have to anchor their tiny boats on the open sea, which will make them vulnerable to any rough weather. Besides that this beach had been a center of all cultural activities for these fishermen. All these activities came to a sudden end with this ugly barrier on our beautiful beaches.

The above-mentioned concerns seem to be insignificant described in few words but the effects of these will be life threatening for the local fishermen in future. One may counter argue on this point that these fishermen will get alternative source of earning with the construction of the deep sea port.

As the literacy level in this area in general and among fishermen in particular is not very high, it would be difficult for these fishermen to adopt another source of life. They are unskilled labor as far any other profession goes. Generally, services of unskilled labor are required during the construction phase of any project. But, number of local people working on the port site can be counted on fingers. No technical college or center started to uplift the technical know how of these people as promised in the rhetoric of the leaders.

So far I have been talking about the public sector and activities of the Govt. Private sector also play a crucial role in the development process of any area. At Gwadar, private sector also took part in the systematic economic destruction of the local fishermen. As private business enterprises are guided by only profit maximizing objective, they are least concerned with the welfare of local fishermen on back on them they have built their business empires.

All the laborers in the all fish processing plants are imported from Karachi and from as far as Gilgit Baltistan to work in these factories. They have also sponsored foreign fishermen (mostly Bengalies), some of them have no legal documents to stay in Pakistan, to come and catch certain breed of fish like Sim or Bangda, ribbon fish or Chind which are in demand in the international market.

These foreign fishermen use a particular type of net called plastic which has negative effects as of trawling. This extensive pressure on few breeds and prohibited net will systematically destroy the ecological system of the sea same as the construction of the deep-sea port. Therefore, public and private sector are acting in partnership at Gwadar to economically displace the local fishermen of Gwadar.

Recently, security authorities instructed the local fishermen to keep out of the area where the dredging activities are going on. During a discussion of local representative of fishermen and security authorities, one of the Commander of MSA said why don’t you guys go to Sur-Bander, a near by village. The Commander has no idea that these local fishermen generally fish in and around Koh Bahteel and it is economically not viable for them to go to Sur-Bander for fishing. Instructing people to go somewhere else isn’t it a forced displacement of people?

Initially, when the Gwadar Master Plan was not made public, there were concerns for displacement of Gwadar City to somewhere else. Local people and nationalist protested against any such plan and leaders including General Musharraf, Chief Minister Baluchistan and Federal Education Minister’s rhetoric are on record that there will be not any displacement of city.

But by analyzing the above mentioned points rather facts, if with the construction of this port, the very source of livelihood of the local people is destroyed, then it would not be viable for these people to stay on that place. That would certainly results in economic displacement of people. Displacement is displacement whether forced or economic.

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Question Gwadar - Port of Hope or Despair?

Alok Bansal
Security analyst, New Delhi

The Pakistan government has declared that the first phase of the Gwadar Port to be complete. It was not inaugurated by the Chinese Prime Minister as scheduled 'due to various reasons'. This fact is significant and indicates further deterioration in the situation in Balochistan. Pakistan Prime Minister Shaukat Aziz had stated in Quetta on October 3, 2004 that the port would be jointly commissioned by the Pakistani President General Pervez Musharraf and the Chinese Prime Minister in January 2005. It seems that their presence at inauguration was avoided in view of the prevailing conditions in Balochistan. Though the Pakistani authorities have attributed the decision to serious damages sustained by roads in the region due to heavy floods in some parts of the province, Pakistani media has reported that the cancellation was due to security reasons. The Chinese Premier was not taken to Gwadar as Pakistan did not want any incident to take place that would give it negative publicity.
Gwadar Deep Sea Port Project is being built with Chinese assistance and is the largest infrastructural project being executed in Pakistan since independence. The importance accorded to the project is evident from the fact that Pakistan wanted it to be jointly inaugurated by the Pakistan President and the Chinese Premier. According to the Pakistan government, when fully ready the port will link the Central Asia countries and Afghanistan with a network of railways and roads. During the initiation of work at the port, President Musharraf had stated that the port of Gwadar would have strategic advantages on account of its location and once the rail and road infrastructure were fully developed, the port would become a regional hub for trade and commerce.
Due to its location at the entrance of the Persian Gulf, the port has immense geo-strategic significance. It provides the shortest and cost-effective access to landlocked Afghanistan and Central Asian Republics. The continued unstable regional environment in the Persian Gulf and the emergence of the new Central Asian States has added to the importance. It will be the first major port outside Karachi-Bin Qasim Complex and will remove a critical vulnerability as it will provide Pakistan with another option to disembark vital supplies in case of non-availability of Karachi-Bin Qasim Complex either due to natural disasters, accidents or naval blockade.
The project is also the cornerstone of economic development of Pakistan and Balochistan, and could change the landscape of the region and fortunes of its people. It will boost trade with Central Asian states, help attract foreign investment and create new job opportunities. It could also open opportunities for the export of natural resources and minerals of Balochistan.
A project that triggers economic development and provides employment should normally be welcomed by the local residents. The Pakistani government obviously has ambitious plans for developing Gwadar, and there should be no reason why construction of a new harbour should be met with any opposition. However, the Baloch nationalists have been vehemently opposing the project and have been regularly targeting the developmental work and associated personnel. They complain that the manpower for the project is not drawn from the province. As the channelling of funds is in the hands of the non-Baloch, their plea for control over decisions pertaining to development activities have been ignored. They feel that fruits of Gwadar will not reach the Baloch people; on the contrary, they feel it will lead to large scale influx of outsiders in Balochistan and make them a minority in their own province.
Chinese involvement in the project has led to speculation about their interest. The presence of a strategic port at Gwadar which provides China with access to the Persian Gulf, and which is uncomfortably close to the main US overseas base in the Gulf will not be welcomed by the US. The port, by design or default, also provides China a strategic foothold in the Arabian Sea and the Indian Ocean and will enable China to monitor its energy shipments from the Persian Gulf.
Gwadar has enormous economic potential and can become another Dubai and change the landscape of Balochistan, but the port cannot achieve its potential as long as the restive population of Balochistan does not feel enthusiastic about it. Pakistan pins great hopes on Gwadar and expects it to become a gateway to Central Asia and Afghanistan. The successful completion of the project at the moment is uncertain, but there is no doubt that its successful completion will result in enormous benefits to Pakistan and may provide China with a crucial outpost in the Persian Gulf.

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