Improvements made to Gwadar that support naval and submarine requirements make Gwadar ideal location for the second permanent military outpost for China overseas, after a base in Djibouti.
SUMMARY
International excitement due to China’s One Belt One Road (BRI) Initiative has made recent strides in port city Gwadar, Pakistan, a country Beijing plans on investing $57 billion into. Construction plans include improving the deep-water port for both trading and military use, the addition of a luxury golf resort, and an airport to rival the Islamabad International Airport just finished by a Chinese company in Islamabad. Up-scale residential buildings are expected to accompany the economic development initiative in the area. Investment missions to the U.S. are already being advertised in the Washington, DC area. As part of the BRI, China has been working on creating the China-Pakistan Economic Corridor, or CPEC, giving China access to the India Ocean and the oil-rich Middle East. Improvements made to Gwadar that support naval and submarine requirements make Gwadar ideal location for the second permanent military outpost for China overseas, after a base in Djibouti.
FAO GLOBAL ASSESSMENT
Chinese investment and potential new trade routes will likely produce a wide range of opportunities for companies looking to enter the region. While there are some obstacles to getting involved, foreign companies from the UK, Australia, and the US have already begun investing alongside Chinese state-owned enterprises. Pakistan has made a major effort to ensure a safe environment for investment from Beijing – attempting to create a friendlier destination for foreign investors. However, Pakistan still has a number of militant groups operating in the in Balochistan Province where Gwadar is located and attacks against projects and authorities are still common. Kidnappings do occur but are less pronounced. Gwadar will likely have an increased security presence once complete but investors should take precautions to mitigate exposure to risk that may occur.
Related Links
- South China Morning Post – Is China’s ambitious Belt and Road Initiative a risk worth taking for foreign investors?
- Asia Times – China on building spree of airports, ports in Pakistan
- Pakistan Observer – Pakistan economy has potential to grow by 10pc annually: Miftah
- Fortune – China is Investing $57 Billion Into Pakistan
- CPEC Info – CPEC vital for China’s BRI because of Gwadar
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