The Gwadar Port is situated on the Arabian Sea at Gwadar in the Balochistan province of Pakistan and is under the administrative control of the Maritime Secretary of Pakistan and operational control of the China Overseas Port Holding Company. The formation of the China-Pakistan Economic Corridor (CPEC) has been one of the significant transformations in the strategic and economic geography of Pakistan where Gwadar Port has played an essential role in the conception of CPEC. This article sheds light on Gwadar Port and its influences on Balochistan in various respects including economic,  security, and social contexts. In light of the above-mentioned factors regarding the economic advantages, security risks, and promises made to the locals in Balochistan, this investigation shall strive to present an overall account of the port’s developmental utility. 

Introduction 

Gwadar Port situated on the coast of the Arabian Sea in the Balochistan province of Pakistan has gained more importance due to its role in CPEC. This port is in the vision aimed to become a hub serving the logistic needs of China, the Middle East and the rest of the world and can dramatically change the regional economy. Geographically, Gwadar is located at the entrance of the Persian Gulf and gives the Chinese import/export sea route by avoiding the Malacca  Straits which would help to save a lot of distance. This article delves into the economic,  security, and social impacts of Gwadar Port, addressing key research questions: To what extent do you think it feasible to state that Gwadar Port has positive economic effects on the Balochistan economy? Let us unveil the security and social consequences in Balochistan as a result of the growing issue of missing persons. Has the development project of Gwadar Port met the expectations of the people of Gwadar and Baluchistan?  

The China-Pakistan Economic Corridor which comprises a group of projects started in 2013  includes rapidly enhancing Pakistan’s economy through infrastructure development primarily through advanced transportation systems, energy projects, and special economic zones.  CPEC is one of the many projects handled by Chinese President Xi Jinping’s Belt and Road  Initiative to bring about improvement to trade, and create connectivity and development across  Asia and even other continents like Africa and Europe by fixing infrastructure links.  

Gwadar Port is also a part of this corridor which is a prominent deep-sea port to address the large traffic and to boost the trade. Gwadar city has been developed as a commercial city of international importance and it is believed that when fully developed will serve as a transit hub for Central Asian Republics, Afghanistan, and western China linking them to the international markets. In the same way, the operationalisation of the port is expected to slash costs as well as the time needed to transport goods, thus acting as a substitute for conventional shipping lines. 

Therefore, it should not be assumed that the advantages of Gwadar Port are only in the sphere of trade promotion. Consequently, it holds the ability to induce social-economic development in Balochistan, one of the most utilised, but least developed provinces in Pakistan. It has been politically isolated and economically neglected for most of its history with inadequate development of communications, health and education standards and inadequate employment. The development of Gwadar Port containing related projects of CPEC is assumed as a potential solution to deal with these chronic problems.  

However, the project is not without its controversies as well as challenges that accompany it. It has been witnessed that there have been certain issues to do with the integration and efficiency of the development, the capacity of the local communities to benefit from direct investments, and how these forms of large infrastructures affect the environment and social structures. Security risks also remain high as Balochistan is an insurgency and unrest-affected province of Pakistan that increases operational risks for the  Pakistani and Chinese sides of the project.  This article aims to provide a comprehensive analysis of Gwadar Port’s impact on  Balochistan by addressing the following research questions. This article aims to provide a comprehensive analysis of Gwadar Port’s impact on Balochistan by addressing the following questions.

Research Questions

• What role or contribution does this port of Gwadar have in stimulating or reflecting the economy of Balochistan?  
• In the security and social aspect what will happen to Balochistan?  
• Was the expectation made regarding the development of Gwadar Port appropriate?  

Thus, the answers to the presented questions will help to reveal such Gwadar Port studies as successes, CPEC challenges, and Balochistan and Gwadar Port’s future development perspectives. The conclusions of this research will help to advance comprehension of the part that mega-IRs play in the growth of the region and the challenges in reconciling national mega-strategies and socio-economic needs. 

Research Methodology and Sources of Data

Concerning the above research objectives, this study adopts a secondary data analysis method to investigate the effect of Gwadar Port on the Balochistan region. This methodology is manpower-effective and saves time since it delivers a vast amount of information for analysis and comparison at a relatively cheaper price. The secondary sources of data for this study include: The secondary  sources of data for this study include:  

• Government Reports and Statistics  of the Pakistan Government

Official data from Pakistan’s Planning Commission and the Pakistan Bureau of Statistics along with other government-affiliated organizations and bodies offer data on economic statistics, trade turnover, employment indices and development of infrastructures. These sources are informative to measure the utilities of Gwadar Port, especially in Balochistan province. 

• Scholarly publications, Articles & Research Papers  

The analysis of the literature review of published articles on Gwadar Port development from the easily accessible international and national journals and relational database of international refereed academic journals and research papers facilitates the understanding of the theoretical and empirical framework. The following research studies carried out by Small  (2015), Huang (2018), as well as Wolf (2019), present a view on the economic, security, and social impact of the port.  

• Reports from International Organizations  

There are papers from the World Bank, International Monetary Fund (IMF), and Asian  Development Bank (ADB) papers that offer detailed reviews of CPEC and Gwadar Port. These reports contain information such as economic predictions, analysis of risks, and recommendations concerning policies essential for perceiving the multifaceted role of the port in Balochistan.  

• Newspaper articles and Media reports  

Local or national newspapers, magazines and television news and programs provide up-to-date information and occurrences of Gwadar Port. Such sources assist in identifying public opinion, current issues, and socio-political factors concerning the development of the port. 

Literature Review  

There exist various articles and papers on Gwadar Port and CPEC, this is because the projects play a major role in the dynamics of the region as well as the global economy. Given this, the following overview concludes the findings of prior studies to present the context for the current analysis.  

• Economic Impact  

Many scholars have identified possible economic opportunities for Gwadar Port to  Pakistan and the overall area. Siddiqui and Qureshi (2017) noted that the development of the port will improve the trade connection and bring down the cost of transportation placing  Pakistan in the middle of the artery. World Bank (2018) have also pointed, out that the generation of employment opportunities and industrial development in Gwadar is a possibility due to investment in connectivity and the launch of the Gwadar Free Zone.  

Yet, doubts concerning the tangible realization of such benefits for the indigenous people can also be found. Ahmed and Baloch pointed out that although Gwadar Port has attracted sufficient foreign investment, the development of a local economy is quite insufficient, and there is a shortage of development environment for indigenous people. They also stress the formulation of policies that will enhance the quality of life chances for all people without regard to status.  

• Security Concerns  

This is because Balochistan itself has been a hub of insurgency and some negative activities concerning Gwadar Port and CPEC security have been much concern issue. Nationalist ethnics of Baluch have been also against CPEC and this project, they find it to be a looting of resources of Baluchistan which they are not benefiting from it (Rafiq, 2017). The relations have become tense due to the involvement of Chinese personnel and their military escalating causing attacks on infrastructure and the staff.  

Khan, S. M, in 2020 conveys that the protection of CPEC projects is highly valued by the  Pakistani military that developed the Special Security Division unique to safeguard Chinese interests. Even though such measures are imperative in maintaining the project’s security; they have also worsened other grievances in the region by creating a military-like culture.  

• Social and Environmental Impacts  

Its social and environmental effects have been a worry to both scholars and social activists in regard to Gwadar Port. In his 2018 work, Baloch specifies that such fast-paced infrastructural development distorts the ecological environment and harms marine life. People who depend on activities that are associated with these ecosystems,  most notably, the fishing community, have been impacted.  

People socially have been affected due to the introduction of non-local workers and this has also boosted the economic activities replacing the earlier cultures. Jan and Ali (2020) then further stress that Gwadar Port is still a regional monopoly, so the social unrest and a feeling of marginalization among the locals, who belong to Baloch ethnicity, is fully explainable.  

• Desires of the government and local attitudes  

Largely, the government’s prospects concerning the development of Gwadar Port have been analyzed in the prior studies. A report by the Sustainable Development Policy Institute indicates that the government has laid promises of provisions in the aspects of infrastructure, employment and improved living standards the progress is slightly off track.  

Historical Background 

The transformation of Gwadar from a small fishing village to one of Pakistan’s vital ports started in the early 2000s facilitated with the entry of China as a major investor. Speaking of  CPEC, the development of the port is one of the key projects that belong to the BRI. In terms of development, Balochistan has always been left behind in comparison to other provinces in  Pakistan and hence the Gwadar project has become the light of development in the province.  

Gwadar port was envisioned as part of the Freeport City project starting in 2002 with Pakistan and China’s initiative to build the port. Originally, the project was divided into phases with the first phase of the project being carried out in 2006. Such first phase comprised of three multi-purpose berths and a 4. .5-kilometre access channel. The management of the Gwadar Port was operational in December 2013 when Pakistan handed over its management to the China  Overseas Port Holding Company.  

There is no doubt that Gwadar Port has the potential to change Balochistan province in terms of economic boom. This port is likely to generate employment opportunities for thousands of people, boost the business fraternity and act as a pull factor for foreign investment. By the construction of road networks and other infrastructural projects under  CPEC progress in connectivity has already been observed which translates into better trade and business. Nevertheless, the degree to which these advantages have diffused in the local economy is an issue to some extent.  

• Employment Opportunities and Household Income 

Besides that, employment has been created by the port and its attendant projects;  nevertheless, the composition of employment raises questions about the location and accommodation of the opportunities for the local Baloch population. Consequently, although the new jobs have been generated, it is noted that the largest segment of employees is represented by non-Pakistani workers Thus it is seen that the local population is not very happy with this growing trend. The Planning Commission of Pakistan has stated to generate up to 40,000 jobs upon the complete development of Gwadar Port. Yet, many of these jobs were hired out to labour that is often either contracted from other regions of Pakistan or even overseas, which has left many Baloch citizens frustrated. 

• Investment and Infrastructure 

CPEC has been deployed in infrastructure, especially road networks, highways and energy sectors. The Gwadar Free Zone intended to enhance industrial ventures shall invite further investments. Nevertheless, the effects on domestic industries have been less overwhelming,  especially since a lot of small businesses are forced to fight against larger well well-organised and experienced firms. It can be observed that through project investment, major infrastructures such as Gwadar International Airport have been constructed and the construction of East  Bay Expressway is expected to boost trade activities. Nevertheless, the benefits of these developments have yet to be realized by the local businesses.  

• Real Estate Boom  

People have been holding real property in Gwadar with an expectation of rapid development the prices of the lands have increased tremendously. This has been advantageous to land owners and investors though it has also caused the eviction of local people and the general raising of the cost of living. The developmental authority of Gwadar says figures of property rates of Gwadar have elevated by more than five hundred percent after initiating the CPEC  projects. This has acted as a result of increasing price charges making it hard for the residents to be in a position to access housing, thus increasing socio-economic disparities.  

• Impact on the Fishing Industry Impact 

Construction of the port and corresponding changes in the number of ships arriving and leaving have affected the fishing industry in the area; fishing is one of the main sources of income for residents of the given region. There have been negative impacts on the construction activities on this aspect for it has interfered with fishing routes and reduced fish stock in the area. Such fishermen have claimed that they have fewer fish to catch and have problems accessing their fishing grounds which has presented alternative socio-economic challenges to many families. 

Security and Resistance from Local Population

Over the years, Gwadar Port being significant strategically has attracted investments as well as security issues. Balochistan province has always been a sensitive area that to date continues to face insurgencies and militant activities. Especially, the development of Gwadar has further bamboozled these security concerns.  

• Security Challenges  

It has Chinese people owning the port and having a growing military presence to protect the port has raised tensions. Anti-Project organizations organized by locals for opposition against the presence of foreign groups and the exploitation of local resources have attacked the  Vehicles, installations and individuals linked with the project. Thus, the Pakistani government has provided more security concerning CPEC-related facilities; in particular, it has created a special SSD. The South Asia Terrorism Portal has revealed that multiple incidents of assaults on the projects and personnel associated with the CPEC have led to deaths and destruction. The measures of protection, which have been introduced, can be characterized as the militarization of the area that hurts the inhabitants of the locality.

• Social Implications and Opposition  

In general, the indigenous people are divided in their perception of the development of  Gwadar Port. While some people view it as a sign of future economic development, others consider the phenomenon as the detriment of jobs and traditional people’s values. This has created anxiety over the acquisition of land, people’s eviction and poor compensation rates have restrained people’s support. Third, it also indicates that development has benefitted only a few people thus increasing feelings of exclusion among locals. Open condemnation to authorities through demonstrations from people-occupied areas of development has been an outcry over compensation for their land mostly not enough, lack of access to social amenities, and development for itself deemed to have left out the locals.  

• Impact on Social Fabric  

The changes in the social demography of Gwadar since the influx of workers and more economic activities are quite relevant and conspicuous. The status quo of the people is changing and the split between the people of East Africa and the immigrant workers/personnel is widening.  This has resulted in social problems and feelings of marginalisation from the Baloch people in their homeland.  

Major Challenges to Gwadar Port

The Perceptions of the locals living around Gwadar Port are rather positive or negative some see it as a way of economic development, while others have little or no confidence in the prospects of developing the Port owing to past failures and what they assume is the continued marginalization of their rights to fair development. Some of these issues need to involve the locals in the development process. The development of Gwadar Port has been surrounded by several problems and criticisms of socioeconomic and environmental context.  

• Environmental Impact  

The fast growth has affected the environmental balance in various ways such as the deterioration of the marine environment and pollution. A major activity that has been threatened by the development of ports and the congestion of the waters is fishing, a major source of livelihood for most of the people living in these areas. Non-governmental organisations compiling to the environment have accused port-related activities of posing a threat to the coastline through spilling of oil and marine pollution and destruction of natural habitats.  

• Economic Disparities  

Thus, years of investments have not created a seepage effect on the local economy.  Resentment has begun to build up at home for the perception that everybody at home has remained a loser, while Chinese firms and a gaggle of Pakistani elites are reaping the economic benefits from the BRI project. A report on the Balochistan Economic Forum has indicated that the development of this port has not benefitted the local businesses and communities in the same way that the economies of scale have benefitted the larger companies and investors who dominate the economic benefits of this port.  

• Political and Social Resistance  

Political opposition from Baloch nationalist groups and social activists has been a major problem. They claim that the establishment of the development projects under CPEC like the Gwadar Port act in the interests of the country and the international players rather than in the interests of the local people and their rights. The Balochistan Liberation Army (BLA) and other separatist groups have targeted the Chinese assets believing that CPEC was an exploitation of Baloch’s resources to the benefit of the Chinese without relatively propelling the locals. 

• Infrastructure Strain  

Due to the fast urbanisation and growth of the population, there has been pressure on physical infrastructure as well as social amenities such as water, electricity and health facilities. The facilities available in Gwadar have been stretched to the limit and can hardly cope with the rapidly growing population and level of economic activities in terms of water supply,  electricity, and unsanitary health services.  

Major Findings  

• Most of the Economic Advantages are Restricted Only to Some Selected Industries  

Indeed livelihood activities have been created in the Gwadar Port development but they have not trickled down to the public. Sustained job creation and income generation have been evident, but mainly those offered to foreign and temporary employees and large firms. Most of the economic advantages of the port development have not been felt by the local Baloch community, many of whom complained of marginalisation.  

• Heightened Security Concerns 

Security has been another confirmed factor concerning Gwadar Port which has put a considerable security force in Balochistan provoking more tensions. It is evidenced that insurgency and militant activities are still a real problem. The military presence in this region has risen, and the people are feeling unsafe because of the current rising insurgent actions against security forces.  

• Conflicting Perceptions  

The local population has mixed feelings about the development of Gwadar Port. Whereas a few people see the possibility of generating income, more people are frustrated by unsolved aspirations and unfavourable societal and environmental effects. Some of the reasons why there has been acute dissatisfaction and opposition include a lack of response to local concerns and the provision of measly or at least insufficient social rewards.  

Recommendations  

• Inclusive Development Policies  

Ensure local people are sufficiently involved in the planning of development projects and their execution. Such measures should be oriented to guarantee equal employment and promotion for personnel and to assist local enterprises. Committing to vocational training as well as education reforms that would cater for the local people can assist in guaranteeing that they are well placed to benefit from the vacancies.  

• Enhanced Security Measures  

Formulate comprehensive security archetypes that can envelop the security of infrastructure and simultaneously dodge the insurgency-causing socio-political factors of the local population. Gaining the support of the local leaders and the people as well as trying to address their problems can go a long way in the enhancement of development.  

• Environmental Protection  

Regulate strictly the harms caused by ports to the marine ecosystem as well as the fishing activities of the people living close to the coast. More specifically, it is necessary to complete environmental impact assessments periodically and bring the coastal zone’s standards in line with the international norms of environmental conservation to preserve the coastal environment and support effective development.  

• Transparent Compensation Mechanisms  

Use clear and equitable practices for compensation for those who have been relocated or have lost their homes/properties, within the proposed developments. That is why it’s possible to state that opposition could be decreased concerning development projects if to provide enough compensation and support to the people who lost their homes, jobs and other opportunities due to various development projects.  

• Social Infrastructure Development  

Develop school infrastructure, health facilities, and accommodation as it acts as a social capital that enhances the lives of the people in the immediate catchment area. Providing that the basic needs of the locals are met through the delivery of basic social amenities is another way of popularizing the project and the need for cohesion. 

Conclusion  

Standing at the core of CPEC, Gwadar Port has also fostered the economic prospect of  Balochistan at a grand level. Still, this potential build-up is surrounded by economic,  security, and social issues, which are likely to appear when implementing a large-scale project. Thus, for the secure socioeconomic development of Gwadar Port, it is imperative that: Major historical lessons that can be learnt from Gwadar are: The intervention at the local level concerning strategy, the economic motives and the objectives of the project will be of great important to enhance the full potential of Gwadar ports and achievement of sustainable development in Balochistan.  

Disclaimer: The views and opinions expressed by the author do not necessarily reflect the views of the Government of India and Defence Research and Studies

Title image courtesy: www.graana.com

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