Feasibility and Importance of Gwadar Port
This post discusses the feasibility and importance of Gwadar Port located in the Balochistan province of Pakistan.
Gwadar Port is a deep-sea port located at Gwadar in Balochistan province of Pakistan developed with the financial assistance of China.
What are the factors that made the development of Gwadar Port feasible?
Both human and natural factors that make Gwadar Port feasible are as follows:
1. Deep-Sea Port
Gwadar is located in the Arabian Sea. The coast water where Gwadar Port locates is very deep making it suitable for the development of a deepsea port. Heavy and Cargo ships can be anchored at the port because of the depth of the water.
2. Warm-Water Port
The Arabian Sea is a warm water sea. Unlike seas located at poles, the water in the Arabian sea does not freeze making international trade possible throughout the year. Gwadar Port with its location on the Arabian Sea will be operational throughout the year.
3. Clear Weather
The weather of Gwadar remains moderate and clear throughout the year. Clear weather is important for port activities.
What is the importance of Gwadar Port?
Gwadar port has huge economic importance for Pakistan and the neighboring countries. Gwadar Port can be game-changer not only for the economy of Pakistan but for the economy of the whole world.
1. Revenue Generation
Through Gwadar Port, China will connect with the Middle East, Africa, Europe, and other parts of the world for trade and wise versa. Landlocked countries like Afghanistan and Central Asian countries cal also use Gwadar Port to trade with the world. As a result, Pakistan will charge tax from these countries in form of transit fees thus generating much-needed revenue.
Similarly, Pakistan will also charge countries for using warehouses developed at the port. The foreign trader can also use warehouses to stores their goods and transport them later on. This can be another source of revenue generation for Pakistan.
2. Development of Balochistan
Balochistan is the least developed province in Pakistan. With a fully functional port, the provincial government of Balochistan will generate revenue in different ways of collecting taxes. The government will use revenue generated via different taxes to speed up the economic activities and increase the living standard of its people.
3. Substitute Port
Gwadar Port can act as a substitute port for Karachi and Bin Qasim Port. The authorities can divert ships toward Gwadar Port in case of any protest or natural calamity like cyclones etc.
Industrialization is fast taking place and near Gwadar Port which will result in both local and foreign investment. This will also result in increased industrial production and export. A better position of balance of trade can be achieved and improvement in the overall economy ensured with increased industrialization.
5. Employment opportunities
As with the development of the port, industrialization will take place which in turn will pave way for an increased trade and commerce activities. Industries need labor, so unemployment will also decrease in Balochistan in particular and the country in general. Similarly, increased commerce and trade activities will open doors for unemployed youth to start new businesses and a variety of jobs. Thus, the development of Gwadar Port has created a great potential for an increase in income of the people and a sharp upward shift in the living standard of the people.