The Government of Pakistan has also declared Gwadar as a duty free port and free economic zone so that no taxes will be implemented here. Therefore not only local, but foreign business houses and companies are also investing here in a big way. Government of Pakistan itself has initiated a number of development projects in this area, like Railway line, Gas pipeline, International Airport, Motorway and its own housing projects to ensure maximum facilities to investors in Gwadar.
Keeping in view the strategic importance of Gwadar Port, the federal government has allocated Rs 1.722 billion for its development in the next fiscal year 2008-09.
In this regard allocations for six ongoing and one new development project has been approved in National Economic Council (NEC) meeting presided by Prime Minister of Pakistan. Total cost of these seven projects relating to development of Gwadar Port is Rs 27.681 billion.
Gwadar is the first seaport of Balochistan, which was completed in three years at a cost of sixteen billion rupees with the financial assistant of china. It will serve as an economic and trade transit avenue for Pakistan, Afghanistan, Central Asia and Middle East countries.
Gwadar, Pakistan,s first deep seaport, after functioning would change the fate of the area by transforming its socio-economic landscape. It would generate tremendous opportunities for the people of Balochistan as thousands of jobs and new business will be created by it.
Free economic zones would be set up near the port that would help harness vast potential in natural resources of the area. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector. Pakistan is already strategically located and this seaport would increase this importance and make the access to the Central Asian States more convenient.
Singapore Port Authority, which would look after Gwadar port for 25 years, is running ports in almost 9 countries and would invest almost three billion dollars for the development of this port.
This port had been declared tax-free for 40 years and it is estimated that almost 50 million ton cargo would go through this port in next 10-15 years. It would give boost to the economy of the country and Pakistan would become the economical and trade hub of the region.
Gwadar is located on the southwestern coast of Pakistan, close to the Strait of Hormuz in the Persian Gulf, through which more than 13 million bbl/d of oil passes. It is strategically located between three increasingly important regions of the world: the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.
Gwadar Port is expected to generate billions of dollars in revenue and create two million jobs. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector.
With a population of 125000, the Gwadar Town on Makran Coast is now set on way to become a hub of shipping, commercial and industrial activities.
The port comes as a much-needed national requirement in the wake of the rise in cargo traffic on Country’s ports, which are operating at full capacity.
It is expected that Pakistan’s maritime traffic would rise by three folds by 2010. With the construction of a third port, it is estimated that Pakistan will not only be able to meet its own requirements of the future but also offer its port facilities to the neighboring countries.
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