#Iran, #India trade charges on delay of #Chabahar port. #Gwadar #Pakistan #Afghanistan http://economictimes.indiatimes.com/news/politics-and-nation/iran-i... … via @economictimes

The Budget may have allotted Rs 150 crore for the development of Chabahar port in Iran, but it may not be enough to bring the long delayed project back to life as Tehran has not yet submitted a proposal for release of the fund despite several reminders, some officials say. 

Indian government had set aside $235 million, or about Rs 150 crore, line of credit for the project since 2015 but is unable to release the first tranche of $150 million, they said. 


"The funds cannot be released without paperwork and this has not yet reached the Indian government. Even reminders from EXIM Bank to Iran have not helped," a person familiar with the matter told ET. 

"There are apparently no reasons behind Iran's delay in submitting the proposal for the release of loan," the person alleged. 

Iranian government sources, however, told ET that the Indian side is delaying work on the project, but did not explain reasons for delay. The project was earlier delayed when the Iranian side unilaterally changed terms and conditions on the eve of the signing of MoU in 2015 by introducing a local stakeholder without consulting India, Indian sources said. 

#Land rush around #Pakistan's #Gwadar port triggered by #Chinese investment | Reuters #CPEC

http://mobile.reuters.com/article/idINKBN16215Q
Pakistani real estate giant Rafi Group made a ten-fold profit last year from its sale of hundreds of acres of land in the remote fishing town of Gwadar, acquired soon after the government announced plans for a deep-sea port there.

The windfall came after 12 years of waiting patiently for the Gwadar port to emerge as the centrepiece of China's ambitious plans for a trade and energy corridor stretching from the Persian Gulf, across Pakistan, into western Xinjiang.

"We had anticipated the Chinese would need a route to the Arabian Sea," Rafi Group Chief Executive Shehriar Rafi told Reuters. "And today, all routes lead back to Gwadar."

Gwadar forms the southern Pakistan hub of a $57-billion China-Pakistan Economic Corridor (CPEC) of infrastructure and energy projects Beijing announced in 2014.

Since then, land prices have skyrocketed as property demand has spiked, and dozens of real estate firms want to cash in.

"Gwadar is a 'Made in China' brand and everyone wants a piece," said realtor Afzal Adil, one of several who shifted operations from the eastern city of Lahore in 2015.

Last year, Pakistan welcomed the first large shipment of Chinese goods at Gwadar, where the China Overseas Ports Holding Company Ltd took over operations in 2013. It plans to eventually handle 300 million to 400 million tons of cargo a year.

It also aims to develop seafood processing plants in a nearby free trade zone sprawled over 923 hectares (2,281 acres).

The route through Gwadar offers China its shortest path to the oil-rich Middle East, Africa, and most of the Western hemisphere, besides promising to open up remote, landlocked Xinjiang.

Last year, the Applied Economics Research Centre estimated the corridor would create 700,000 jobs in Pakistan and a Chinese newspaper recently put the number at more than 2 million.

Authorities have completed an expressway through Gwadar, which has a 350-km (218-mile) road network. A new international airport kicks off next year, to handle an influx of hundreds of Chinese traders and officials expected to live near the port.

The volume of Gwadar property searches surged 14-fold on Pakistan's largest real estate database, Zameen.com, between 2014 and 2016, up from a prior rate of a few hundred a month.

"It's like a gold rush," said Chief Executive Zeeshan Ali Khan. "Anyone who is interested in real estate, be it an investor or a developer, is eyeing Gwadar."

Prices, which have risen two- to four-fold on average, are climbing "on a weekly basis," said Saad Arshed, the Pakistan managing director of online real estate marketplace Lamudi.pk.

Regional fishermen have held strikes during the last two years, to protest against being displaced by the port.

To keep pace with the interest, urban officials are struggling to computerise land management and record-keeping. "We are trying to upgrade as fast as we can," said Zakir Majeed, an official of the Gwadar Development Authority (GDA).

But Gwadar lacks basic education and health facilities, in contrast to the gleaming towers and piped drinking water of the "smart city" envisioned by the GDA.

"For commercial projects, things are moving fast," Lamudi's Arshed said. "But people actually living there, that will take a long time."

Port officials expect the population to hit 2 million over the next two decades, from about 185,000 now.

Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of #CPEC

https://tribune.com.pk/story/1341071/gwadar-china-build-automobile-...

Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of the China-Pakistan Economic Corridor (CPEC).

According to a private news channel, sources linked to CPEC project stated that the Chinese authorities have already initiated paperwork on said projects, which reflects their seriousness.

Analysts have advised owners of local automobile industry to start joint ventures with Chinese as this would help in transfer of technology as well as boost the local industry. Earlier, China announced to set up a steel factory under CPEC apart from various other projects.

China is developing the Gwadar port as a strategic and commercial hub under its ‘One-Belt One-Road’ initiative that promises shared regional prosperity. CPEC is one of many arteries of the ‘One-Belt One-Road’

In 2013, Pakistan handed over the Gwadar port to the Chinese company by annulling a deal with a Singapore company that could not develop the port after taking over in 2007. The ECC further approved amendments in the Gwadar Port Concession Agreement for operating and developing the Gwadar port and free zone.


On October 31, hundreds of Chinese trucks loaded with goods rolled into the Sost dry port in Gilgit-Baltistan as a multibillion-dollar project between Pakistan and China formally became operational.

The corridor is about 3,000-kilometre long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to the rest of the world through Gwadar port.

India shouldn’t drag China into dispute with Pakistan over Kashmir: Expert

http://www.hindustantimes.com/world-news/india-shouldn-t-drag-china...

China needs to have access to ports such as Gwadar in Pakistan under the China-Pakistan Economic Corridor (CPEC) and the Belt and Road Initiative (BRI) to move its huge shipments of cargo to other parts of the world, said Wang Zhan, a deputy to the National People’s Congress (NPC), China’s Parliament, and president of the Shanghai Academy of Social Sciences.

“I know India has lot of disagreements with the CPEC to Gwadar port. But if you are Chinese, considering (the situation in) Malacca Strait and the South China Sea, you would be looking for alternative passageways. We have so much cargo, we surely need the ports. We have to pass by the Indian Ocean to reach Europe,” he said.

Speaking exclusively to Hindustan Times on the sidelines of the just-concluded NPC session, Wang said: “I know India and Pakistan have a dispute over (Kashmir.) If we go through the Kashmir area, which belongs to India, its a problem of sovereignty (for India) but now Pakistan has the right of administration (over PoK). So, it’s a problem between India and Pakistan and doesn’t relate to China.”

Wang, who is also managing director of the China Centre for International Economic Exchanges, said China wasn’t the first country to bring up the Silk Road plan to connect regions and continents.

“Japan brought up the Silk Road in 1990s, an American Harvard professor brought it up in 2005, and Hillary Clinton brought it up in 2011. They all brought up the Silk Road concept earlier than China,” he said, adding some proposals were north to south and China’s east to west.

“If all the projects in these plans could be realised, the countries touched in the plans would definitely develop, and the economic development would decrease the element of war and chaos,” he added.

Wang said China’s increasing investments in infrastructure, such as ports, in South Asian countries such as Sri Lanka is purely for economic reasons.

“For sure it’s for economic reasons. You can know the answer by the map. India is a peninsula, the trade between Europe and China have to pass by the sea near India and Sri Lanka. It’s decided by geography. We can’t go by Antarctica. If you think from China’s view, you will do the same,” he said.

Referring to China’s objections to India drilling for oil in the South China Sea, Wang blamed Vietnam for the confusion.

“In the 1970s, the Vietnamese had completely agreed that South China Sea belongs to China. Later, they occupied 29 islands and built infrastructure. India drilled for oil in the same area, so we protested. The South China Sea is China’s lifeline. It’s not necessary for India to get involved in the South China Sea disputes,” Wang said.

Feature: Port co-built with China fuels Pakistan's economic engine
Source: Xinhua| 2017-04-03 17:05:20|Editor: ying

http://news.xinhuanet.com/english/2017-04/03/c_136180263.htm

by Liu Tian
ISLAMABAD, April 3 (Xinhua) -- Gwadar, an poorly-known port town previously in Pakistan has been becoming a new economic engine for the country with the construction of a free zone co-built with China.
"We have finished 60 percent of the first-phase construction for the port's free zone, which is expected to be completed by the end of this year, one year earlier than we planned," Hu Yaozong, deputy general manager of the Gwadar Free Zone Company, told Xinhua in a recent interview.
Chinese engineers and their Pakistani counterparts are working around clock in the construction site with the hope of seeing the free zone is open to operation as early as possible.
The free zone is a key step towards developing the Gwadar port into an important regional hub that will benefit not only south Asia, but also the countries in central Asia and the Middle East.
The free zone, which covers about 923 hectares of land and will be developed in four phases. It is designed to take advantage of Balochistan's rich fishery and mineral resources to develop relevant industries for overseas market and to develop light industry for the domestic consumption.
As a part of the light industry plan, China's Linyi overseas market, a comprehensive shopping mall project, will soon be introduced into the free zone.
"It is quite alike the renowned Yiwu small commodities market in China. The Linyi market in Gwadar will develop an overseas warehouse so as to make their goods not only available in the Pakistan market, but also in markets around the region," said Hu.
According to Hu, the first round of investment has almost completed with projects on fishery and electric motors settled and business center enterprises moved in.
The second-phase construction of the free zone is featured with a huge stainless steel factory, which, Hu added, would create a considerable number of jobs for locals in Gwadar, which has a population of less than 100,000.
With the further development of the port and free zone, work forces in other villages around Gwadar are expected to flow into Gwadar.
According to the deputy general manager, a training school donated by China will be completed soon. After short-term training, local people are expected to find a position in the developing Gwadar, he said.
Munir Ahmad Jan, director general of the Gwadar Port Authority (GPA), also shows high expectations on Gwadar's future.
Besides Chinese and Pakistani investors, a lot of investors from other countries have come to the GPA to consult on business opportunities in the free zone, he said.
In 2016, the Pakistani government issued a financial act which ensured a 23-year tax exemption policy for the Gwadar free zone in a bid to attract more international investors.
Jan said that as businesspeople have seen the bright future of the Gwadar port, a lot of Pakistani real estate investors came to Gwadar to purchase land.
He said the land prices now in Gwadar are increasing fast and real estate related industries have witnessed real momentum in the small city.

Feature: Port co-built with China fuels Pakistan's economic engine
Source: Xinhua| 2017-04-03 17:05:20|Editor: ying

http://news.xinhuanet.com/english/2017-04/03/c_136180263.htm

Jan said that as businesspeople have seen the bright future of the Gwadar port, a lot of Pakistani real estate investors came to Gwadar to purchase land.
He said the land prices now in Gwadar are increasing fast and real estate related industries have witnessed real momentum in the small city.
"We feel that Gwadar's free zone area needs further expansion and we have requested for more area," said the official.
"China and Pakistan have an equally long history, but China developed rapidly due to sincere Chinese leadership and now it has become the leading economy in the world. We shall try to maximize our experiences, cooperation and assistance from China to develop our own country and improve common people's lives," Jan told Xinhua.
The development of the Gwadar port is not only in the economic field, but also at a broader social level.
A vessel carrying construction material from a China-donated emergency center reached Gwadar in March.
The medical center, which will come into service as early as in May, is designed to carry out basic diagnosis and treatment, conduct small surgeries and emergency rescues.
It will initially be operated by Chinese medical teams and be gradually handed over to the Pakistani side in the future.
In September last year, a China-donated primary school came into use in Gwadar. The school had planned to enroll about 150 pupils, but more than 300 students of different grades attend the school as many locals believed that the school had better teachers and facilities.
"We are very thankful to the Chinese people who have long been very active in Pakistan's infrastructural development. I think our relationship will be further strengthened with the passage of time because of the sincere leadership on both sides," Jan concluded.

#India's plan to develop #Iran's key #Chabahar port faces #US headwinds. #Gwadar #CPEC #Pakistan http://reut.rs/2sL5iTx via @Reuters

Western manufacturers are shying away from supplying equipment for an Iranian port that India is developing for fear the United States may reimpose sanctions on Tehran, Indian officials say, dealing a blow to New Delhi's strategic ambitions in the region.

Lying on the Gulf of Oman along the approaches to the Straits of Hormuz, the port of Chabahar is central to India's hopes to crack open a transport corridor to Central Asia and Afghanistan that bypasses arch-rival Pakistan.

India committed $500 million to speed development of the port after sanctions on Iran were lifted following a deal struck between major powers and Tehran to curb its nuclear program in 2015.

But the state-owned Indian firm that is developing Chabahar is yet to award a single tender for supplying equipment such as cranes and forklifts, according to two government sources tracking India's biggest overseas infrastructure push.

U.S. President Donald Trump denounced the nuclear agreement on the campaign trail, and since taking office in January has accused Iran of being a threat to countries across the Middle East.

Swiss engineering group Liebherr and Finland's Konecranes (KCRA.HE) and Cargotec (CGCBV.HE) have told India Ports Global Pvt Ltd, which is developing the deep water port, they were unable to take part in the bids as their banks were not ready to facilitate transactions involving Iran due to the uncertainty over U.S. policy, the two officials said in separate conversations with Reuters.

These firms dominate the market for customized equipment to develop jetties and container terminals. One official said the first tender was floated in September, but attracted few bidders because of the fear of renewed sanctions. That fear has intensified since January.

"Now the situation is that we are running after suppliers," one official said, speaking on condition of anonymity because of the sensitivity of matter.

A Konecranes spokeswoman declined to comment beyond confirming the company was not involved in the project.

Cargotec and Liebherr did not respond to requests for comment.

------

prodded in part by China's development of Gwadar port, which lies barely 100 km (60 miles) from Chabahar on the Pakistani coast, Indian Prime Minister Narendra Modi's government has unveiled massive investment plans centered around the Iranian port, offering to help build railways, roads and fertilizer plants that could eventually amount to $15 billion.

So far, even an initial credit line of $150 million that India wants to extend to Iran for development of Chabahar has remained a non-starter as Tehran has not been able to do its part of work.

"They have not sought the loan from us because they haven't awarded the tenders, either because of lack of participation or banking problems," said the second government official.

Ambassador Kumar said the Iran had indicated it would be sending proposals shortly to tap the credit line.

Meena Singh Roy, who heads the West Asia center at the Institute for Defence Studies and Analyses, a New Delhi think-tank, said increasing tension between Washington and Tehran would have an impact on the port project.

"The Chabahar Project has strategic significance for India," she said. "However ... nothing much seems to be moving due to new uncertainties in the region."

Iran and Pakistan: An Interview with Alex Vatanka

, Iran and Pakistan: Security, Diplomacy and American Influence


https://lawfareblog.com/iran-and-pakistan-interview-alex-vatanka


You also discuss the growth of anti-Shia sectarianism in Pakistan and the transition from Zulfikar Bhutto to Zia ul-Haq. Can you explain that a little bit?

Zulfikar Bhutto is a Pakistani Shia himself. He's not interested in the sectarian dimensions of this at all. In fact, when I studied Iranian-Pakistani relations from the 1940s all the way up to the present, you have to travel to the late 1970s—almost 40 years go by where the Sunni-Shia issue isn't mentioned at all in any of the cables coming out of London and elsewhere. It's a non-factor. Nobody cares.

It becomes an issue when Gen. Zia ul-Haq takes over and decides to Islamize Pakistani society the way he thinks it should be done, which is the hardline Sunni version of Islam, which in turn creates fear among the large (about 20 percent) Shia minority in Pakistan. But remember, Zia ul-Haq takes over in '77 and the Shah falls in '79, and if you look at that two-year period and say, how much fear and anxiety did ul-Haq's policies about becoming more of a Sunni state create in Tehran? The answer is, very little. What the Shah worries about is that Zia ul-Haq turns to the Gulf Arab states for patronage or guardianship, whatever you want to call it. It is only after Khomeini comes to power in Iran in '79 and who also plays the sectarian card that you see an element of sectarianism becoming more of a practice.

But again, I want to emphasize, even when Khomeini was alive in the 1980s, this is largely limited. When we think about 20 percent of Pakistan's Muslims are Shia, that you have a couple thousand that are joining radical groups doesn't tell me that sectarianism was the number one item on the agenda.

Why would Bhutto in the early 1970s turn to the Gulf Arab states? This is important. He's a Shia Pakistani leader. He's not driven by the fact that he shares being Shia with the Shah of Iran; in fact, he falls out with the Shah of Iran. Why? Because he sees the Shah of Iran looking down on Pakistan increasingly after Pakistan's defeat against India in 1971, and Zulifikar Bhutto feels the Shah thinks he is by nature going to lead the regional hegemon. Pakistan is not happy with that and when the Iranians start basically echoing what the Americans are asking the Pakistanis to do—primarily American demands that Pakistan cease any efforts in pursuit of nuclear weapons—when the Shah echoes that American line, from Zulfikar Bhutto’s point of view, then the Shah is no longer a partner as such, but somebody that's basically conveying Washington's concern to him.

So what does he do? Zulfikar Bhutto turns to the emerging oil-rich Gulf states—the Emirates, Qatar, Saudi Arabia. The fact that he was Shia had nothing to do with it. Bhutto is focused about India: Who can come to my aid, who can foot the bill for my nuclear program that I need to build up because I know that India is just about to get their hands on a nuclear weapon and I cannot lose that military competition on that front? There is no mention from the Saudis, the Emiratis, the Qataris—all of these famously Sunni nations—oh, we don't like Bhutto because he's Shia, you know? There's no sign of that. This sectarianism is something that unfortunately becomes much bigger of a player in the foreign relations of everybody in the last 15, 20 years because of a lot of other factors.

Development firm announce plans for first master community development for private market 

"We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." 

http://www.prnewswire.co.uk/news-releases/china-pak-investments-acq...

Leading private investment house China Pak Investment Corporation today announced its acquisition of the 3.6 million square foot International Port City project in the city of Gwadar. The investment company is currently revising the scheme's plans in line with international developments standards and will be developing the first of its kind $150 million gated master community tailor-made for the expected 500,000 incoming Chinese professionals expected in Gwadar by 2022.

(Photo: http://mma.prnewswire.com/media/564249/China_Pak_Hills_Phase_1.jpg )
The project which is expected to be renamed China Pak Hills hails an exciting new phase in the development of the port of Gwadar, the 'Gateway City' to the $62 billion China Pakistan Economic Corridor (CPEC), the largest unilateral foreign direct investment from one nation into another. The CPEC is set to catapult Pakistan's stature as a key global trade and economic hub and includes a bouquet of projects currently under construction that will not only improve Pakistan's infrastructure, but will deepen the economic and political ties between China and Pakistan.

Hao-Yeh Chang, Corporate Communications Director for China Pak Investments Corporation commented, "We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." 

The final master plan for China Pak Hills is currently being refined in Hong Kong, and will feature a range of state-of-the-art amenities including an open-air shopping boulevard; indoor shopping mall; restaurants and eateries; an international school & nursery; six community parks; indoor and outdoor sports facilities including tennis courts and a resident's gymnasium; a water desalination plant and recycling centre. China Pak Hills will also be home to the Gwadar Financial District, catering to the growing financial sector and adding much needed A Grade office space to Gwadar's growing market.

One Investments Ltd, a UK-based property investment company, headed by Zeeshan Shah, have been appointed as Global Master - Agent for the Development. "China Pak Hills is a unique and exciting opportunity. The level of investment and commitment made by the Chinese government in the CPEC guarantees that Gwadar is going to be one of the most important trading and access points in the World. Its geographic position, combined with the infrastructure being created through the CPEC means that it can only grow exponentially."

The China Pak Hills master-community is being developed by China Pak Investments and is soon expected to announce options for private sale of limited plots to end purchasers.

Experts divided on economic benefit of Chabahar Port
SANJAY KUMAR | Published — Monday 4 December 2017

http://www.arabnews.com/node/1203746/world

India’s Ministry of External Affairs said in a statement that the port would “provide alternative access to landlocked Afghanistan into regional and global markets… an integrated development of connectivity infrastructure including ports, road and rail networks would open up greater opportunities for regional market access and contribute towards the economic integration and benefit of the three countries and the region.”
However, Phunchok Stobdan, a former Indian ambassador to Kyrgyzstan and a distinguished academic, questions the economic viability of the port.
“In terms of slogans, yes, you can call it a new era of connectivity. But how much substance is there, we don’t know. It is just a beginning. It is more about political opportunism than economic benefits, as I see it,” said Stobdan, who is also a senior fellow at New Delhi-based think tank, Institute of Defence Studies and Analysis (IDSA).
“What do you want to export and what you want to import?” he continued. “There are no high-value items to trade between India and Afghanistan.
“I feel the Indian government should also work out some mechanism to open the Wagah border,” he continued. “But Pakistan has been using the strategy of denial for very long time. It is working in their favor. It is a larger political issue; it is not an economic or connectivity issue.”
Stobdan also claimed that “the significance lies in the fact that, before Trump puts (forward) lots of objections, India has been brought into the picture.”
The Chabahar port, located in the Sistan-Balochistan province of Iran’s southern coast, is seen by some as a counter to Pakistan’s Gwadar Port — which is being developed with Chinese investment and is located around 85 km from Chabahar — and, by extension to the China-Pakistan Economic Corridor (CPEC).
“We can say lot, but the economy will speak,” Stobdan said. “You think the Chinese did not know about the Chabahar port? They knew. The market is in Pakistan. The market is in India. The market is not in the Sististan-Baluchistan area.”
Afghan ambassador Abdali said: “The Chabahar port will be open to everyone. All the stakeholders and I hope that no one thinks of it as a counter to any other initiatives. At the same time, I consider it a major development for the whole region.”

Hoping to extend maritime reach, #China is lavishing vast amounts of aid on a small #Pakistani fishing town of #Gwadar to win over locals and build a commercial deep-water port that #America and #India suspect may also one day serve Chinese navy. #CPEC

https://www.reuters.com/article/us-china-silkroad-pakistan-insight/...

Beijing has built a school, sent doctors and pledged about $500 million in grants for an airport, hospital, college and badly-needed water infrastructure for Gwadar, a dusty town whose harbor juts out into the Arabian Sea, overlooking some of the world’s busiest oil and gas shipping lanes.

The grants include $230 million for a new international airport, one of the largest such disbursements China has made abroad, according to researchers and Pakistani officials.

The handouts for the Gwadar project is a departure from Beijing’s usual approach in other countries. China has traditionally derided Western-style aid in favor of infrastructure projects for which it normally provides loans through Chinese state-owned commercial and development banks.

“The concentration of grants is quite striking,” said Andrew Small, an author of a book on China-Pakistan relations and a Washington-based researcher at the German Marshall Fund think tank.

“China largely doesn’t do aid or grants, and when it has done them, they have tended to be modest.”

Pakistan has welcomed the aid with open hands. However, Beijing’s unusual largesse has also fueled suspicions in the United States and India that Gwadar is part of China’s future geostrategic plans to challenge U.S. naval dominance.

“It all suggests that Gwadar, for a lot of people in China, is not just a commercial proposition over the longer term,” Small said.

The Chinese Foreign Ministry did not respond to a request for comment from Reuters.

Beijing and Islamabad see Gwadar as the future jewel in the crown of the China-Pakistan Economic Corridor (CPEC), a flagship of Beijing’s Belt and Road initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

The plan is to turn Gwadar into a trans-shipment hub and megaport to be built alongside special economic zones from which export-focused industries will ship goods worldwide. A web of energy pipelines, roads and rail links will connect Gwadar to China’s western regions.

Port trade is expected to grow from 1.2 million tonnes in 2018 to about 13 million tonnes by 2022, Pakistani officials say. At the harbor, three new cranes have been installed and dredging will next year deepen the port depth to 20 meters at five berths.

But the challenges are stark. Gwadar has no access to drinking water, power blackouts are common and separatist insurgents threaten attacks against Chinese projects in Gwadar and the rest of Baluchistan, a mineral-rich province that is still Pakistan’s poorest region.

Security is tight, with Chinese and other foreign visitors driven around in convoys of soldiers and armed police.

Beijing is also trying to overcome the distrust of outsiders evident in Baluchistan, where indigenous Baloch fear an influx of other ethnic groups and foreigners. Many residents say the pace of change is too slow.

“Local people are not completely satisfied,” said Essar Nori, a lawmaker for Gwadar, adding that the separatists were tapping into that dissatisfaction.

First #Djibouti ... now #Pakistan's #Gwadar tipped to have #China's naval base. #India #Iran #Chabahar #Navy #Military #Hormuz #RedSea https://sc.mp/2CINAJb via @SCMP_News

Beijing plans to build its second offshore naval base near a strategically important Pakistani port following the opening of its first facility in Djibouti on the Horn of Africa last year.

Beijing-based military analyst Zhou Chenming said the base near the Gwadar port on the Arabian Sea would be used to dock and maintain naval vessels, as well as provide other logistical support services.

“China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port,” Zhou said.

“It’s a common practice to have separate facilities for warships and merchant vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services.”

Another source close to the People’s Liberation Army confirmed that the navy would set up a base near Gwadar similar to the one already up and running in Djibouti.

“Gwadar port can’t provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support,” the source said.

The confirmation follows a report this week on Washington-based website The Daily Caller in which retired US Army Reserve colonel Lawrence Sellin said meetings between high-ranking Chinese and Pakistani military officers indicated Beijing would build a military base on the Jiwani peninsula near Gwadar and close to the Iranian border.

Sellin said the plan would include a naval base and an expansion of the existing airport on the peninsula, both requiring the establishment of a security zone and the forced relocation of long-time residents.


Gwadar port is a key part of the China-Pakistan Economic Corridor, a centrepiece of Chinese President Xi Jinping’s broader “Belt and Road Initiative” to link China through trade and infrastructure to Africa and Europe and beyond. The corridor is a multibillion-dollar set of infrastructure projects linking China and Pakistan, and includes a series of road and transport links.

Sellin also said the Jiwani base could be “signs of Chinese militarisation of Pakistan, in particular, and in the Indian Ocean”.

Chinese military observers said Gwadar had great geostrategic and military importance to China but China was not about to “militarise” Pakistan.

Zhou said China wanted better access to the Indian Ocean, which was now largely limited to the Strait of Malacca in Southeast Asia. The Gwadar port could be a transit hub for sea and land routes once the corridor’s railway was up and running, helping improve and cut the cost of logistics for China.

“The Chinese naval flotilla patrolling in the Gulf of Aden and other warships escorting Chinese oil tankers in the Indian Ocean need a naval base for maintenance as well as logistical supplies because they can’t buy much of what they need in Pakistan,” Zhou said.

Rajeev Ranjan Chaturvedy, a research associate at the Institute of South Asian Studies at the National University of Singapore, said India was well aware of China’s plans in Pakistan.

“China finds it very useful to use Pakistan against India and ignore India’s concerns, particularly on terrorism issues. That has created a lot of stress in the relationship between Beijing and Delhi,” he said.

“[But] Indian naval capabilities and experience in the Indian Ocean region are fairly good. Much better than Pakistan and China.”

Dubai vs Gwadar: port cities chart a course for share of world’s economy

By Ashraf Aboul-Yazid and 3 collaborators

https://www.wikitribune.com/story/2018/01/11/pakistan/dubai-vs-gwad...

A strategic port at the confluence of the Arabian Sea and the Gulf of Oman in southern Pakistan is continuing to push its rival megaports in the United Arab Emirates, pitting the lesser-known Gwadar against Dubai in a bid to move goods faster and more cheaply to some of the most populated countries of the world. 

“Many economic analysts believe that Gwadar is another Dubai emerging on the world’s map,” said Tariq al-Shammari, a writer and self-described activist, who wrote about the expansion of the Pakistani port for OpenDemocracy, a UK-based political website. “Gwadar port will become the main sea gate for Central Asia.”

As it becomes easier to send goods through Gwadar, Dubai may see a threat to its regional influence, al-Shammari said.

“This challenging point, recently, has caused a silent economic war in the Gulf of Oman between two groups of countries; Pakistan, China and Qatar on one side, India and the UAE on the other,” he wrote.

How the ports stack up

Dubai’s two major commercial ports — Port Rashid and Port Jebel Ali — provide significant revenue to the UAE. Jebel Ali has the biggest man-made harbor in the world and the biggest Middle East port, and more than 5,000 companies from 120 countries rely on its services for goods ranging from consumer items to heavy construction machinery.

Gwadar’s deep sea port is strategically located to provide easier access to the Gulf region and the Middle East for China, especially the northwest Xinjiang region, and central Asia countries. The overland distance from Gwadar to Kashgar, in China, is 1,500 miles, while it is another 2,500 miles to move across China to Shanghai. Cargo ships have to move double the distance, again, to reach the Middle East waters.

The Gwadar corridor will reduce the transport time for goods to Western China by about 60 or 70 per cent, according to Liu Ying, a research fellow at the Chongyang Institute who studied the economics of the port (The Telegraph).

China’s influence

The Gwadar port is a key project in China’s One Belt, One Road initiative (South China Morning Post), which seeks to build strong economic connections between China and the countries along the old Silk Road – and well beyond.

Gwadar was built with financial and technical assistance from China, which took operational control after the Port of Singapore Authority pulled out of a 40-year port management and development contract because it was unable to get the land it sought to develop a free trade zone. The Gwadar port had been unable to become fully operational because of unsettled issues between Islamabad and the port authority.

The pivot to China “will also enable the dragon to swim in the Indian Ocean, which is strategically important for China as it expands its influence across the region, according to The National, a newspaper based in Abu Dhabi in the United Arab Emirates.

“To ensure the security of shipments along existing routes, a Chinese naval presence at Gwadar could also patrol the Indian Ocean sea lanes. Of concern to Washington and New Delhi is the Chinese naval presence near the Strait of Hormuz and its strategy of building a ‘string of pearls’ presence on the Indian Ocean rim,” the newspaper reported.

The Gwadar Development Authority is working on developing residential and commercial areas at the port, spurring growth in real estate and services. As observers note, some of the projects mirror those in Dubai, of which it may always be more of “sister city,” than a true rival (The Express Tribune).

Mega #oil city to be constructed in #Gwadar as part of #CPEC. Plan includes oil terminal and storage tanks, oil #refinery and #petrochemical #industrial complex. #Pakistan #China

https://www.thenews.com.pk/print/271367-mega-oil-city-to-be-constru...

ISLAMABAD: Pakistan has decided to construct a mega oil city at Gwadar on 80,000 acres under much hyped China Pakistan Economic Corridor (CPEC).

This mega oil city will be used for transportation of imported oil through the Gwadar Port to China. The oil will be imported from Gulf and will be stored at this proposed mega Gwadar oil city.

The distance to China will be reduced, and it will take just seven days to cover the distance from Gwadar to Chinese border as import through western China took almost 40 days by covering double distance.

“We have forwarded PC-1 to the Ministry of Petroleum for acquiring 80,000 acres for this mega oil city at Gwadar with estimated cost of Rs10 billion. There will be additional cost for construction of its storage and other aligned facilities with the help of investments,” Director General, Gwadar Development Authority (GDA), Dr Sajjad H Baloch, told Islamabad based journalists who visited the Gwadar Port last week. This visit was arranged by the Planning Commission in order to show case different ongoing projects under CPEC.

A refinery, petrochemical industries and storage will be established in the oil city, he added.

The Gwadar oil city, he said, would be used for storing oil for its onward transportation to China. Usually, it takes 40 days for vessels to transport oil to China but via Pakistan it will reach China within 7 days, he added. He said that the total area of Gwadar Model City is 290,000 acres which includes 160,000 acres of residential area while the remaining is for industrial purposes. A Chinese company is working on the Model City Plan and it will be ready by August 14, 2018.

To another query regarding different measures for overcoming water shortages at Gwadar, he said that the current water requirement stood at six million gallons per day and there is no direct water supply taking place to the area. Two MGD water is being supplied from two water small dams through tankers and nearest distance is almost 70 kilometres.

“We have a deficit of four million gallons per day in water supply to the area,” he said and added that by 2020, the water requirement of Gwadar would be 12 million gallons per day, for which additional arrangements were made to get 10 million gallons of water.

New Gwadar International Airport: Earlier, the journalists visited the site of proposed new airport at Gwadar. The China Airport Construction Group Engineering Company representative Jianxin Liao told the visiting journalists that they were conducting soil investigation on the basis of which, the design of new airport at Gwadar will be finalised. He said that the procured land for this new airport stood at 4,300 acres, and this airport will possess capacity to handle one million passengers on annual basis. He said that by April this year the design will be completed after which the cost of the project will be estimated. It will be the biggest airport of Pakistan.

The Civil Aviation Authority (CAA) representative Zohaib Soomro said that the initial cost of the project was estimated at $228 million, but its cost would be finalised after completion of design, and it would be estimated again.

The sources said that it would be premature to give any assessment related to cost, but it would be more than $2 billion to $2.7 billion at least if we want to construct state of the art airport in accordance with international standards.

India Lacks a Competitive Trade Strategy for Chabahar
India needs a sound economic and political strategy to maximize the benefits it receives from Chabahar.

https://thediplomat.com/2018/01/india-lacks-a-competitive-trade-str...

The first shipment to pass through the port of Chabahar to Afghanistan was celebrated with much fanfare and excitement this late October. India, with the largest economy in South Asia and an ever-rising military footprint has much to be proud of regarding this development. In the face of regional tensions with its western neighbor, Pakistan, India has chosen to circumvent the nation in order to open new trade routes with Afghanistan and greater Central Asia. Delhi may now find it easier to further diversify its trading partners, strengthen its relations with regional neighbors, and simultaneously compete with China’s Belt and Road Initiative.

While the potential for Chabahar’s positive externalities remain numerous, they also remain largely hypothetical. The completion of the project does not necessarily guarantee an increase in Indian economic influence, considering the economic and political realities that Delhi presently faces on the domestic front and in the region. The competitiveness of Indian exports, the security situation in Afghanistan, and regional geopolitics pose several hurdles that India must overcome.

Domestically, India faces a slowing economy that has had six continuous quarters of decreasing growth. The economy rebounded in the latest quarter but growth forecasts for the economy continue to be revised downwards due to recent poorly executed economic reforms (the Goods and Services Tax and demonetization). This becomes further troubling as the Indian economy continues to be faced with a critical job shortage that must incorporate 12 million young people every year. Additionally, India’s banking sector continues to pose risks to the economy with non-performing assets (bad loans) continuing to rise to unprecedented levels. In light of domestic economic challenges, Delhi would be wise to draft a comprehensive economic strategy to justify the cost of the overall investment in Chabahar and the overall multinational initiative.

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Currently, India has allocated around $2 billion to the overall project — $500 million dollars has been allocated to the construction of Chabahar port to increase cargo handling capacity and $1.6 billion to the construction of a rail link that will connect the port to the city of Zahedan. The city borders Afghanistan and will allow goods to flow into the country through already built infrastructure. Chabahar port will also serve as a starting point for the over-arching International North-South Trade Corridor (INTSC) that aims to connect India, Iran, Russia, and various Central Asian states. Remarks by Indian Prime Minister Narendra Modi and various analysts claim that the new port will revolutionize trade and commerce. This may prove to be true if India is able to drastically improve the efficiency of its manufacturing sector and increase the demand for Indian goods.

Yet, the current status quo will prove difficult to change considering both the cost and share of total exports India sends to Central Asia (including Afghanistan) when compared to other nations, specifically China. In early July, the Minister of State for Micro, Small, and Medium Enterprises, Haribhai Chaudhary, was asked why domestically produced goods cost more than those imported from China. Chaudhary responded, “The products manufactured in China are reportedly of lower price mainly because of their opaque subsidy regime and distorted factor prices.” India’s economy is primarily based on the services industry, which composes more than half of its GDP, compared to industry (including manufacturing), which only composes a little more than a quarter. China’s economy on the other hand, is primarily composed of industry, giving it greater leverage and ability to compete with Indian goods.

Pakistan, China Jointly Showcase Arabian Sea Gwadar Port

https://www.voanews.com/a/pakistan-china-jointly-showcase-arabian-s...

Pakistan and China have jointly organized the first international exhibition to showcase the significance of the Arabian Sea Gwadar Port and its economic free zone as an emerging international business hub.

The warm water deep sea commercial port, which overlooks some of the world’s busiest oil and gas shipping lanes, has been built and recently expanded with Chinese financial assistance.

More than 200 companies from both China and Pakistan were present in Monday’s event at Gwadar, while six Chinese provinces also sent their representatives, said Beijing’s ambassador to Islamabad, Yao Jing, while addressing the ceremony.

Foreign diplomats and business leaders were also invited to the opening session of the two-day event.

Chinese operators of the port say the Gwadar Free Zone shall bring extensive economic benefits, like a tax holiday for 23 years and land lease up to 99 years to the upcoming businesses along with other incentives and pro-business policy frame work for general trade, services, manufacturing, logistics, trans-shipment and bunkering business.

Direct benefit for Pakistan

Gwardar port is to be a trans-shipment hub connected to landlocked western Chinese regions, giving Beijing a secure and shorter international trade route through Pakistan.

Gwadar is celebrated as the gateway to the China-Pakistan Economic Corridor, or CPEC, a flagship of President Xi Jinping’s global Belt and Road Initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

Under CPEC, networks of road, communications, rail, economic zones and power plants are being built and upgraded in Pakistan with an estimated Chinese investment of $62 billion.

Around $27 billion in projects are underway or completed, including “early harvest” energy projects, adding much-needed electricity to Pakistan’s national grid.

“I would like to say that the Chinese government will continue to invest and send our input to further support the development of this project. Also, we will encourage Chinese companies and Chinese businessmen to join the development of Gwadar,” vowed Chinese envoy Jing.

Wider benefit planned

During the ceremony, Pakistani Prime Minister Shahid Khaqan Abbasi said CPEC is the “most visible part” of China’s of BRI, saying the mega project will cater not only to the needs of his country, but to the needs of the region.

Officials expect Gwadar’s cargo handling capacity to increase to 1.2 million tonnes by the end of this year and it will be able to process about 13 million tons by 2022, making it the largest port in South Asia.

Chinese partners say they would need around 38,000 skilled workers by 2023 for the Free Zone, according to Dostain Jamaldini, Chairman of the Gwadar Port Authority. He says of the 2,500 current workers, around 500 are Chinese nationals and the rest are locals.

An international airport with a 12,000 meter runway is being constructed in the once sleepy town with a Chinese financial grant of around $300 million.

The Arabian Sea port is located in Pakistan’s largest province of Baluchistan where militant groups, including Islamic State, and a low-level insurgency remain key security challenges to CPEC.

Additionally, the corridor runs through Pakistan-controlled portion of the divided Kashmir region, drawing objections from rival India. The United States suspects China may also turn Gwadar into a military base.

But Chinese officials reject those concerns, maintaining “CPEC is merely an economic cooperation project,” and Islamabad dismisses New Delhi’s opposition as politically motivated.

#Pakistan Mulls #US, #NATO Offer to Ship #Afghan Supplies Through #Gwadar Port as Shorter, Cheaper Route. #CPEC

https://www.voanews.com/a/pakistan-mulls-natio-offer-to-ship-afghan...

Pakistani officials say the U.S.-led NATO military coalition in Afghanistan has offered to import vital supplies through the southwestern port of Gwadar, calling it a much shorter and economically viable route into landlocked Afghanistan.

The federal minister for maritime affairs, Hasil Bizenjo, says NATO representatives proposed the idea at a recent meeting he convened with local and international business leaders.

“They (NATO) are very interested and we are working on it,” Bizenjo told VOA in an interview.

The coalition of about 16,000 troops, known as Resolute Support, mostly consists of Americans advising and assisting Afghan forces in their battle against the Taliban and other militant groups.

The military mission is dependent on ground lines of communication and air lines of communication, known as GLOC and ALOC, through Pakistan for receiving supplies.

Currently, NATO supplies are shipped through the southern Pakistani port of Karachi, where they then are placed on trucks and transported on a week-long journey to neighboring Afghanistan via the northwestern Torkham border crossing.

“NATO people told us it would be extremely convenient for them in terms of quick transportation of supplies from Gwadar directly to Kandahar. They are very interested and we are working on it,” Bizenjo told VOA in an interview.

The Chinese-built, Arabian Sea port of Gwadar is in the southwestern Baluchistan province adjoining Afghanistan's Kandahar province, which hosts one of the five U.S. military bases in the war-shattered country.

Gwadar port is connected to the Chaman border crossing with Kandahar through a newly constructed highway, enabling truck convoys to reach Afghanistan in fewer than 24 hours.

Pakistani minister Bizenjo said companies dealing in Afghan transit trade also want their cargo to be shipped completely through Gwadar.

“Another meeting with Pakistani business and NATO representatives and Afghan transit trade dealers has also been scheduled to further the discussions, Bizenjo said, without saying when.

Pakistan earned the status of non-NATO ally for allowing U.S.-led international forces to use the GLOC and ALOC supply lines to invade Afghanistan in 2001 and oust the Taliban from power for harboring al-Qaida leaders. In return, Islamabad received U.S. security assistance and civilian aid.

The proposal to redirect U.S. and NATO military cargo from Karachi to Gwadar comes as Pakistan’s traditionally rollercoaster relations with the United States suffer fresh setbacks.

Connecting Balochistan
FWO was tasked to lay a network of roads for the much needed connectivity of Gwadar Port with upcountry as part of CPEC. The Frontier Corps was tasked to maintain the law and order throughout the vast province, especially along the highways. 
FWO is presently constructing 873 km of roads in Balochistan as part of Western Route of CPEC to operationalize Gwadar Deep Sea Port by enhancing its connectivity. The road projects being undertaken are:


https://defence.pk/pdf/threads/balochistan-cpec-and-the-roads-to-de...

Hoshab-Turbat-Gwadar Section (M-8) 193 Km 
Khuzdar-Shahdadkot Section (M-8) 58 Km 
Sorab-Besima-Nag-Panjgur (N-85) 430 Km 
Kalat-Quetta-Chaman Road (N-25) 110 Km 
Wagum-Rud-Khajuri Road (N-70) 64 Km 

M-8 Motorway 
The M-8 Motorway reflects the vision of a progressive Balochistan. It is the first motorway of the province which will connect Gwadar with Indus Highway. The alignment of this road goes along Gwadar, Turbat, Hoshab, Awaran, Khuzdar and Rattodero (near Larkana). Traversing through the vast expanse of interior Balochistan the highway shall usher in a new era of socio-economic development and prosperity. Presently the trade trucks going upcountry have to take the longer route via Karachi which results in increase of logistic costs. With the direct and shorter route of M-8 the distance from Gwadar to Indus Highway will be reduced by nearly 400 km.
The Gwadar, Turbat, Hoshab section of M-8 is a vital part of CPEC’s Western, Central and Eastern Routes and will serve all Gwadar bound traffic. The road has been constructed by FWO in most challenging and hostile terrain and security environment.



N-85 Highway 
The N-85 Highway is also known as the Gwadar-Quetta link. It starts from Hoshab and moves northwards towards Quetta passing through Panjgur-Besima and Sorab from where it merges with the Karachi-Quetta Highway (N-25) at Kalat. The 448 km highway passes through the remote towns of interior Balochistan and provides a direct and shorter link between Gwadar and Quetta. Construction of this highway was a big challenge due to harsh terrain and security hazards. FWO has mobilized its resources at 14 locations to complete the project this year. The highway is being regarded as a catalyst for the progress and development of interior Balochistan.


Kalat-Quetta-Chaman Road 
The Kalat-Quetta-Chaman road (N-25) serves as an important trade route between Pakistan and Afghanistan. The 230 km long road is divided into four sections of which Section 1 and 3 have been completed while Section 2 i.e., Khad Koocha to Quetta (54 km) and Section 4 i.e., Jungle Piralizai to Chaman (57 km) are being completed by FWO. Also known as RCD Highway this road constitutes the shortest access from Gwadar and Karachi ports to Afghanistan. Substantial progress has been achieved and the project is scheduled to be completed this year.


Despite serious logistic constraints in wake of remoteness of the area and unfavourable security situation, Pak Army is determined to complete this onerous but formidable task within stipulated timeline. The FWO has already completed 648 km of roads out of 873 km, which is a record by any international standard. Completion of these projects by end of 2016 would effectively link Gwadar Deep Sea Port with China through Karakoram Highway (KKH), Afghanistan and Central Asia through Chaman, Central Trade Corridor and Torkham.

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Gwadar update: COSCO will start a container shipping line at Gwadar port on every Wednesday from 7 March 2018. Businessmen who are interested to export or import specially sea food from Gwadar to any destination to China or any destination globally, can take benefit of it.

https://twitter.com/zlj517/status/963323304655269889

#Iran shocks #India. #Iranian FM says he has offered #Pakistan and #China participation in India's #Chabahar project http://toi.in/qUtthZ/a24gk via @timesofindia

NEW DELHI: In what may come as a shock to India, Iran said yesterday it offered Pakistan and China participation in the Chabahar project, a port that is being built by India for the express purpose of bypassing Pakistan.
Pakistan's Dawn newspaper reported today that Iranian Foreign Minister Javad Zarif yesterday invited Pakistan to participate in Chabahar seaport project + and in the development of its link with the Gwadar Port "as he sought to allay concerns here (in Pakistan) over Indian involvement in the Iranian port."
“We offered to participate in the China-Pakistan Economic Corridor (CPEC). We have also offered Pakistan and China to participate in Chabahar,” said Zarif, who is on a three-day visit to Pakistan, while delivering a lecture at the Institute of Strategic Studies Islamabad, said Dawn. 

Chabahar is said to be becoming a success story in the India-Iran relationship. The first phase of the Chabahar port in south-east Iran, which India is developing, was inaugurated in December last year. The port opened a new strategic transit route between India, Iran and Afghanistan that bypassed Pakistan. It is expected to cut transport costs/time for Indian goods by a third and likely to ramp up trade among India, Afghanistan and Iran in the wake of Pakistan denying transit access to New Delhi for trade with the two countries.

Given this context, India's not likely to be pleased with the Iranian foreign minister's comments. It's possible though that Zarif was merely making conciliatory remarks. That's because he went out of his way to assure Pakistan that its ties with India are not in conflict with Islamabad

Zarif drew a comparison with Pakistan’s ties with Saudi Arabia and said that just like that relationship does not tarnish Islamabad's ties with Tehran, India's and Iran's relationship isn't going to affect Pakistan negatively, reported Mehr News, an Iranian news agency. He added that the Gwadar port city in Pakistan and Chabahar transit agreement between India, Iran and Afghanistan are “complementary” and not “competitive”.

Pakistan prime minister inaugurates first deep-water container terminal

http://www.arabnews.com/node/1301411/world

Pakistan Prime Minister Shahid Khaqan Abbasi inaugurated the initial phase of the country’s $1.4 billion first high-tech deep-water container terminal on Friday.
Hutchison Ports Pakistan is a public-private partnership of Karachi Port Trust (KPT) and Hong Kong-based Hutchison Ports Holdings. The terminal is one of the most advanced in the region, having broken its own productivity record four times and serviced some of the largest container ships in the world since test operations began on December 9, 2016. Its high performance is expected to raise Pakistan’s global trade competitiveness and set a strong foundation for further economic growth.
“The state-of-the-art new container terminal at KPT will be a key component to become part of the overall CPEC system, assisting and facilitating CPEC development in Pakistan, which the government of both Pakistan and China are pursuing so vigorously,” Abbasi said. “The CPEC is the initiative of BRI, which is the project of not only regional but global connectivity.”
As the incumbent government of the Pakistan Muslim League (PML-N) is about to complete its five-year tenure, the prime minister highlighted the achievements of his government, claiming that it had undertaken major development projects that had not been done in the past 65 years.
“Turning the economy around, overcoming the energy crisis, combating extremism and terrorism and huge investment in human development sectors have remained our key priorities since the very first day of our government,” Abbasi said. “Our economic rebound is particularly remarkable because we achieved it while aggressively fighting terrorism throughout Pakistan, for which we had to allocate resources to our law enforcement agencies.”
He said that many projects in the energy sector were in the pipeline, including four LNG terminals, four power plants of 600 MW and a desalination plant of more than 50 million gallons. “I am confident that the new government after the elections will be more than willing to play its part to make it a success story,” Abbasi said.
Andy Tsoi, managing director of Hutchison Ports, Middle East Africa, said the port was being operated at international standards and applied the highest level of expertise to port operations. “The project is a glowing example of public-private partnership and the Pak- China friendship that will augment the economic environment of Pakistan while revitalizing the ports and shipping industry and strengthen the relationship between both countries,” Tsoi said.
Senator Mir Hasil Khan Bizenjo, minister for maritime affairs, said that 97 percent of Pakistan’s international trade was handled through seaports and the ministry was committed to integrating the country’s ports. “Hutchison Port Pakistan project is an example of the successes of a public-private partnership in which KPT has invested around $800 million and Hutchison Port Holdings will be investing over $600 million,” Bizenjo said.
He announced the start of cruise line services from Karachi port to Chahbahar port via Gwadar port, connecting Oman and Dubai as well. “The Pakistan National Shipping Corporation has completed formalities and is in the process of buying three vessels. Soon foreign and local vessels will be registered in Pakistan like in Panama,” he said.

Slow Internet Hurting China's Silk Road Ambitions in Pakistan
Faseeh MangiJuly 12, 2018, 4:00 PM EDT
Gwadar port seeks to pip Iran’s Chabahar for Afghan business

https://www.bloomberg.com/amp/news/articles/2018-07-12/slow-interne...


A port in Pakistan’s Gwadar is a linchpin in China’s plan to revive the old Silk Road linking Asia to Europe and Africa, but a slow Internet line is causing it to lose business.

The customs authority’s failure to fully address issues with Internet speed and reliability has meant the port, operated by a Chinese state-owned company, is functioning at less than capacity, Dostain Khan Jamaldini, chairman of the Gwadar Port Authority, said in an interview.


“About four cargoes of sea food go daily from here to Karachi,” Jamaldini said, referring to the jetty next to the port where customs clearance is done manually. “We are not proactive, we are reactive. It’s a systematic flaw.”

The deep-sea port in Pakistan represents a geopolitical tension point with neighboring arch-rival India, which is financing an Iranian port about 76 nautical miles away. India sent its first wheat consignment to Afghanistan through Iran’s Chabahar port in October.

Bandwidth Issues
The customs authority’s online system is riddled by delays due to a slow internet connection and an alternative wireless system installed by the Chinese too is facing bandwidth problems, according to Jamaldini.

Pakistan’s Federal Board of Revenue Member Customs, Muhammad Zahid, wasn’t available for comment. Jamaldini feels time is of essence, as Gwadar is better positioned geographically and economically for trade with Afghanistan .

“Chabahar port does not have that potential, the route is longer and more expensive,” he said, adding “state policy can force traders temporarily but not forever, they will work where they make more money.”

What used to be a small fishing town on the southwestern corner of Pakistan is giving way for construction of roads and buildings to house banks, insurance and clearing agents. China Overseas Port Holdings, the port’s operator, has separately spent $250 million to add five new cranes, construct a building in less than six months by importing ready made parts and create space for a free zone.

Read more: China’s Big Political Gambit Hinges on a Remote Arabian Sea Port

Five manufacturers have signed agreements to build factories at the economic free zone, including for electric motorcycles, edible oil and a fish processing plant, said Jamaldini.

China is making a big bet on Pakistan and Beijing’s financing has brought power plants and infrastructure projects valued at about $60 billion. The nation’s economic growth rose to the highest in more than a decade and power blackouts have been curbed, helping trigger a wave of expansion in cement and steel companies.

However, the increased imports has also lead to Pakistan’s current financial deterioration, with a current-account deficit that has increased by 45 percent to $16 billion in eleven months ended May. There are also concerns over the viability of the port itself.

Gwadar “can potentially serve a role to provide additional port capacity for Pakistan itself, for Afghanistan, as a complement and trans-shipment hub for Chabahar, as a location for the Chinese to ship materials and so on,” said Andrew Small, a senior fellow at the German Marshall Fund of the United States and an author of a book on China-Pakistan relations. It “isn’t really envisaged as the beginning or end of a transit route for China.”

#Karachi's Hutchison #Port named ‘Container Terminal of the Year’. It is #Pakistan's first custom-built deep-water container terminal recognized for its pioneering role in deep-water #containers handling in Pakistan and #SouthAsia. https://dailytimes.com.pk/322231/hutchison-ports-pakistan-named-con...

Hutchison Ports Pakistan was presented the Container Terminal of the Year (South Asia) award at the inaugural Transport and Logistics Middle East Excellence Awards 2018. The country’s first deep-water container terminal was the only Pakistani company to be recognized at the ceremony, which was held in Dubai this week.

Organised by the news publication Transport and Logistics Middle East, the awards recognize and celebrate operational and technical excellence among the leaders in the transport and logistics industries in the Middle East and South Asian region.

Present at the ceremony were government dignitaries including H.E. Dr. Nabil Al Amudi, Minister of Transport, Kingdom of Saudi Arabia; H.E. Sultan Bin Saeed Al Mansoori, Minister of Economy, UAE; and H.E. Ahmed Mahboob, CEO of Dubai Customs among others.

Hutchison Ports Pakistan, the country’s first custom-built and deep-water container terminal, was recognized for its pioneeringrole in deep-water container handling in Pakistan and South Asia, including its introduction of innovative solutions — all of which holds the potential to support the country’s shipping industry through savings of time and money.

“We are honoured to receive this award. This recognition is a testament to our commitment of excellence, efficiency and world-class service to our customers,” said Captain Syed Rashid Jamil, General Manager & Head of Business Unit, Hutchison Ports Pakistan.

Through Hutchison Ports Pakistan, Pakistan’s economy stands to benefit immensely not only through the payment of port dues and other taxes and duties but through the creation of direct and indirect employment opportunities, transfer of technology, skills development of Pakistani engineers and other technical employees, cost savings accruing to exporters and importers, and overall efficiencies in Pakistan’s trade by sea.

Hutchison Ports Pakistan is situated at the estuary of the Keamari Groyne basin, providing the most convenient access to ships entering Karachi. The new facility is the closest Pakistan port to the shipping lanes in the Arabian Sea. Its prime location offers the shortest steaming time from the Fairway Buoy, and will bring real benefits to customers, relating to time, cost, reduction in risk of delays, and reduced carbon emissions.

#Pakistan’s deep-water #port at #Karachi enters phase II of expansion. Will handle 3.4 million containers of 20-foot length each by the end of 2020 compared to 1.5 million TEUs (twenty-foot equivalent units) today. #Shipping #Cargo https://tribune.com.pk/story/1967137/2-pakistans-deep-water-port-en...

KARACHI: Hutchison Ports Pakistan, the country’s first and only deep-water port capable of berthing the world’s largest container vessel, has entered into its second phase of expansion.

“The expansion will enhance the installed capacity to handle 3.4 million containers of 20-foot length each by the end of 2020 compared to 1.5 million TEUs (twenty-foot equivalent units) at present,” General Manager and Head of Business Unit Captain Syed Rashid Jamil said while briefing a group of journalists at the expansion site on Monday.

A four-lane railway cargo track of around 4-5 kilometres inside the port facility, coupled with an increase in installed capacity of power production are also included in the second phase expansion plan.
The deep-water port is located at the Karachi Port Trust (KPT). It is a subsidiary of Hutchison Port Holdings of Hong Kong which enjoys 90% shareholding. KPT is a partner in the project. Some local transport and logistics firms have the rest 10% shareholding in the port. The port began commercial operations in February 2017.

Total cost of the project would be $1.4 billion, which includes KPT’s share of $800 million and Hutchison Ports Pakistan’s (HPP) contribution over $600 million.

So far, HPP has spent $450-500 million. “Estimates suggest that it would be spending close to $750-800 million by the time the second phase gets completed,” stated reliable sources.

The firm has opted for expansion despite the growth rate of cross-border transportation of the containerised cargo remaining flat at around 3.4 million TEUs in calendar year 2018 and it shrank 5% in the first four months (January-April) of the current year.

Gwadar port aims to become new Dubai

“We are expanding containerised cargo handling capacity as per our original plans of 2007 when we signed and initiated the project on built, maintain and transfer basis,” Jamil added.

The port is capable of berthing the world’s largest container vessel of 25,000 TEUs as it has a depth of 18 metres at the outer approach channel and 16.5 metres on the berth side. So far, it received the largest ever container ship of 11,923 TEUs – the China India Express – in December 2018.

Earlier, Pakistan was unable to handle containerised vessels of more than 8,000 TEUs.

The reliable sources noted that growth in the cross-border transportation of containerised cargo shrank in the current year after the incumbent government imposed conditions on fast moving consumers goods (FMCGs) sector including printing details and ingredients, halal certificate and expiry date on the products packaging.

The deep-water port has a 28-megawatts (MW) diesel-based captive power plant. It would increase the power production capacity by 8MW in the second phase.

China, the single largest trading partner of Pakistan, has remained the biggest source of containerised cargo transportation at the deep-water port. Besides, it also transports import and export containerised cargo to and from Europe and the US.

#India unhappy as #Iran goes to #Pakistan asking to link #Chabahar to #Gwadar #CPEC Deccan Herald

https://www.deccanherald.com/national/iran-goes-to-pakistan-with-ch...

As New Delhi complied with US sanctions on Iran and stopped buying crude oil from the Islamic Republic this month, Tehran responded by offering to connect its Chabahar Port with Gwadar Port of Pakistan.

Iran was the third-largest oil supplier for India after Iraq and Saudi Arabia. India bought 23.6 million tons of oil from Iran in the 2018-19 financial year.

India is concerned over the proposal Iranian Foreign Minister Javad Zarif mooted during his recent visit to Pakistan late last week. Zarif proposed to connect Chabahar Port of Iran with the Gwadar Port, which was developed by China on the south-weste...

New Delhi perceived Chabahar Port in Iran as a counter to the Gwadar Port, which China developed as part of its “String of Pearls” policy to develop strategic assets around India.

New Delhi has been stayed away from the BRI, as the CPEC, linking Xinjiang in China and Gwadar Port of Pakistan passes through parts of Kashmir that India has been claiming as its own and accusing Pakistan of illegally occupying.

#Afghan-#India #Trade Impacted Due to Cut in #Chabahar funding, #US sanctions on #Iran and #Pakistan airspace closure. Banks in #Afghanistan are not willing to open credit lines for shipment via #Iran ports. https://www.moneycontrol.com/news/trends/current-affairs-trends/cut...

While the (Indian) government has been allocating Rs 150 crore for the port for the past couple of years, this time around, funds allocated have been reduced to Rs 45 crore

The government's decision to slash funds for the development of Chabahar port in Union Budget 2019-20, coupled with the sanctions imposed by the United States on Iran, will affect the trade between India and Afghanistan, The Hindu has reported.

This is in addition to the effect that Pakistan's decision to close its airspace for flights to and from India is having on trade between the two countries, according to the report.

The report states that while the government has been allocating Rs 150 crore for the port for the past couple of years, this time around, the funds allocated have been reduced to Rs 45 crore.

Sources in the Ministry of External Affairs (MEA) told the newspaper that the readjustment in funds is "based on realistic assessment of likely expenditure to be incurred this financial year", indicating that India does not anticipate developing Chabahar port at the same pace as earlier.


"During the last months (February-May), Chabahar had flourished for transportation of goods and commodities to Afghanistan and central Asia with the volume of loading and unloading twice as much as before," Iran’s Ambassador to Delhi Ali Chegeni told the newspaper. He, however, added that hostile statements by US officials on Iran's sanctions "naturally and indirectly has negative impacts and led to worry among companies about working with Iranian ports, including Chabahar".

While the US has stated that Trump's decision not to grant sanctions exemptions to any oil customers of Iran would not have any effect on the port, the report states that the sanctions have slowed business down.

This is because the banks in Afghanistan are not willing to open credit lines for shipment, while cargo handlers and shippers are not servicing the Chabahar port, according to the report.

Chabahar is the only seaport Iran has in its energy-rich Sistan-Balochistan province by the Gulf of Oman and consists of two ports with five berths each. The port is a counter to Pakistan's Gwadar port, which is being developed with Chinese investment.

The port, inaugurated in December 2017, has opened a new strategic route connecting Iran with India and Afghanistan, bypassing Pakistan.

In December 2017, India took over the operations of port and commissioned the second port this January, marking the country's maritime entry into a foreign land.

The report states that the trade with Afghanistan through the air route has also been stalled due to Pakistan's airspace restrictions, with officials stating that a flight from Delhi to Kabul, the Afghanistan capital, taking five hours where it would have taken one-and-a-half hours normally.

#Pakistan's #Gwadar Begins Handling #Afghan Transit #Trade. First ship full of Afghan cargo containers reached Gwadar on Tuesday. Containers will be loaded onto trucks for transport to #Afghanistan via #Pakistani border town of Chaman. #Chabahar #India https://www.voanews.com/south-central-asia/china-built-pakistani-po...

Pakistan’s newly opened southwestern Gwadar seaport has begun handling transit cargo headed to and from landlocked Afghanistan, marking a significant outcome of Islamabad’s multi-billion-dollar collaboration with China.

Officials said the first ship full of Afghan cargo containers reached Gwadar on Tuesday. The containers will be loaded onto trucks for transport to Afghanistan through the Pakistani border town of Chaman.

Kabul traditionally has relied on Pakistani overland routes and the two main southern seaports of Karachi and Port Qasim for international trade under a bilateral deal with Islamabad, known as the Afghan Transit Trade Agreement (ATTA).

The recent Chinese financial and construction efforts, though, have activated the strategically located Arabian Sea deep-water port of Gwadar, which offers a much shorter overland link, particularly to southern regions of Afghan, for the rapid delivery of goods.

The port is at the center of the China-Pakistan Economic Corridor (CPEC), which is building Pakistani roads, power plants, economic zones and a major airport in Gwadar to improve connectivity between the two allied nations and the region in general.

The massive project is hailed as the flagship of Beijing’s trillion-dollar Belt and Road Initiative, which has brought about $30 billion to Pakistan in direct investment, soft loans and grants over the past six years.“

CPEC and the Belt and Road Initiative are promoting regional economic ties,” said the Chinese Embassy in Islamabad while announcing the arrival of the first Afghan cargo containers at Gwadar.

Officials in Islamabad say Pakistan constitutes roughly 47 percent of total Afghan exports, while some 60 percent of Afghan transit trade goes through the northwestern Pakistan border crossing of Torkham. The Gwadar Port, they say, will increase the transit trade activity between the two countries.

China and Pakistan say they also plan to link CPEC to Afghanistan once the security situation improves in the war-torn neighbor.

Beijing recently announced it would fund and install modern reception centers, drinking water and cold storage facilities at Chaman and Torkham to better serve the daily movement of thousands of people as well as trade convoys moving in both directions.

China also has initiated a trilateral dialogue to help ease tensions between Kabul and Islamabad to encourage political, security and economic cooperation in the region.

Critics say Chinese infrastructure investments, however, are burdening economically struggling and debt-ridden economies, like Pakistan, with expensive loans that ultimately would turn into a "debt trap” for these nations. Islamabad and Beijing reject those concerns as misplaced.

#Beijing-backed #Pakistan port opens as hub for #Afghanistan trade. #Gwadar challenges #India's interests in region (#Chabahar) , but #China's ROI remains unclear. #CPEC #Trade #Iran #CentralAsia #CAREC https://asia.nikkei.com/Spotlight/Belt-and-Road/Beijing-backed-Paki...

Gwadar port to boost #Pakistan-#Afghanistan #trade. Bagging of fertilizer will be done in #Gwadar and bags shipped on trucks to Afghanistan which will generate employment for the locals in #Balochistan. #CPEC #infrastructure #trade #economy https://www.outlookindia.com/newsscroll/gwadar-port-to-boost-pakist...

Afghan Ambassador to Pakistan Atif Mashal said Islamabad''s decision to allow Afghan traders to import goods via the Gwadar port in Balochistan province will boost bilateral trade and transit ties between the two countries.

Mashal''s comments on Friday came following the arrival of a cargo ship, carrying 16,000 tonnes urea for transit to Afghanistan at the Gwadar port, reports Xinhua news agency.

Pakistan last month announced to allow import of the Afghan bulk cargo of wheat, sugar and fertilizers at the Gwadar port and onward transit to Afghanistan in sealable trucks, instead of being limited to containers.

"For the first time, bagging will be done locally instead of foreign ports. Urea will be bagged and shipped on trucks to Afghanistan at Gwadar, which will generate employment for the locals. Instructions have already been passed to allocate all labor jobs to local population," Abdul Razak Dawood, advisor to Pakistani Prime Mnister on commerce, textile, industry and production, and investment, tweeted on Friday.

In response, the Afghan Ambassador welcomed Pakistan''s decision.

"This will certainly have a positive impact on Afghanistan-Pakistan trade and transit ties. We must extend support to each other for revival of commerce and connectivity in Central and South Asia that will surely benefit people in the region," Mashal said in a tweet.

Pakistan announced in October 2019 to open the Gwadar port for the Afghan transit trade as the trade related infrastructure at the port was already to handle bulk cargoes to and from Afghanistan.

The first ship carrying containers for Afghan transit trade arrived at the Gwadar port on January 14.

Pakistan and Afghanistan had signed a transit trade agreement in 1965 that was revised in 2010, which calls for better facilitation in the movement of goods between the two countries.

Afghan traders would previously use ports in Karachi for import under the transit trade agreement.

Should #Iran blame #ISI while it helps #India's #RAW against #Pakistan? Iran also cannot afford to turn Pakistan into an enemy given its current level of hostile relations from #US, #Israel to #GCC countries, shared border logic. #KarachiTerroristAttack https://www.globalvillagespace.com/should-iran-blame-isi-while-it-h...

Iran’s blame against the ISI came as a surprise raising many questions: how come Iran is so sure of the ISI’s involvement? Why Tehran did not entertain the possibility of an Indian hand beyond this incident? And why Iran did not take into account the fact that RAW has been operating out of Baluchistan and involved in false flag operations?

Following are the reasons which defy the underlying logic of Pakistan’s alleged involvement in the blast:

Why Pakistan would want to undermine its relations with Iran at a time when it needs Tehran’s supporting role (not spoiler’s role) in Afghanistan.
Islamabad, particularly the Army Chief Gen Bajwa worked very hard to improve ties with Iran.
Pakistan’s policymakers are very much convinced that Islamabad belongs to this region and it took more than 10 years to restore credibility in the eyes of Iran and Russia for forging close relations and for its quest to pivot to Euro-Asia.
Any attempt of undermining Iran means potentially undermining the Entente Cordiale, Pakistan pain strikingly achieved with Russia.
Upsetting China—which sees Iran as long term important friendly country to connect with its ambitious BRI project—is not in Pakistan’s interest; in other words, whatever concerns Pakistan may have with Iran, they may not be necessarily shared by the China which has much bigger priorities as a rising world power.
Any kinetic operation by the ISI in Iran will never get approval a) when Pakistan itself is vulnerable [read Baluchistan] b) having Iranian leverage against its second largest Shia population and c) Shia community has respectable representation at the top echelon of the inclusive Pakistan army forces which will never be bypassed nor behind its back any approval will be granted for any such operation on Iranian soil.
The proximity factor also precludes the ISI of doing any such operation next door to Pakistan’s Baluchistan province (e.g., Sistan/Baluchistan).
The predecessor of the blamed militant outfit was neutralized by the ISI and its leader Ragi was handed over to Iran.
The incident happens on a very unfortunate time when Pakistan is trying to pull off Afghan reconciliation and many spoilers do not want to see Islamabad succeed.
How come Tehran is so sure that this is not a “false flag” operation, when the Indian Intelligence Agency, RAW, is very much active in Pakistani’s Baluchistan border region; after all, it burnt down the province (Baluchistan) in the aftermath of the Mumbai attack in 2008; therefore, the fact that it has the hallmark of the RAW’s false flag operation could not be ruled out.
Pakistan’s big picture with Iran is clear: it has 900 km border with Tehran so cannot afford Iran as an enemy after hostile Indian and Afghan borders hence are not beneficiary in annoying Tehran.

Operation underway against militants near Pakistan-Iran border

https://www.arabnews.com/node/1685296/world

In the most recent attack that has caused friction between the two nations, six Pakistani security personnel were killed in a bomb attack on a paramilitary Frontier Corps vehicle, the army’s media wing said on May 19. Six Pakistani soldiers were also killed in a roadside bomb attack in Balochistan on May 8.

Several militant groups are active in Balochistan, Pakistan’s biggest but poorest province. Much of the violence in the past has been blamed on, or claimed by, ethnic Baloch separatists.

Baloch Khan, a spokesperson for Baloch Raaji Ajoi Sangar (BRAS), an umbrella group of Baloch insurgent groups, confirmed in a media statement last month that a “Pakistan army operation” was ongoing and soldiers were surrounding and raiding remote villages. However, he said no commanders or fighters of BRAS had been killed in the attacks.

An intelligence official who declined to be named told Arab News that it is called the Ground Zero Clearance Operation.

Two additional intelligence officials confirmed that an operation is ongoing. Two local witnesses in the Mand area of Kech district also confirmed “actions” in their area.

In a Twitter post on May 23, a pro-government politician from Balochistan, Nawabzada Jamal Khan Raisani, said the Pakistani military had launched “a sweeping operation” against the Baloch Liberation Army (BLA) and the Balochistan Liberation Front (BLF) along the border with Iran.

Both groups are part of BRAS, along with the Baloch Republican Army and the Baloch Republican Guards.

“The action began (on May 21) with a string of terrorists neutralized and hideouts busted,” Raisani said.

He told Arab News that a senior BLF commander, Abdul Hameed (alias Ghazin Baloch), was among two dozen militants killed in the ongoing operation, which he said was led by Pakistani soldiers and intelligence officers.

The media wing of the Pakistani military and the Foreign Office declined a request by Arab News for comment.

Ijaz Ahmed Shah, the federal interior minister, said his team would respond to emailed questions, but no reply had been received until the time of press.

Balochistan Home Minister Mir Zia Ullah Langove did not respond to specific questions about the operation “for security reasons,” but said: “We have taken effective actions.”

Speaking on condition of anonymity as he was not authorized to speak to the media on the issue, one intelligence officer based in the city of Turbat said a “bank of targets” had been gathered by officials over many weeks, and raids are now being carried out in several areas, particularly against militants hiding in the border areas of Kecch, Panjgur and Gwadar.

Pakistan began fencing its 900-km border with Iran in May last year, which had become a source of “frustration” for militants, the intelligence official said, leading them to plan more attacks.

Last month, Pakistan’s military chief Gen. Qamar Javed Bajwa spoke to his Iranian counterpart Maj. Gen. Mohammed Bagheri via telephone.

They discussed border fencing, the improvement of border terminals, enhancing security and recent attacks on Pakistani troops near the border, among other issues, according to a statement from the Pakistani Army’s media wing.

On April 20 last year, just days after militants killed 14 bus passengers in an attack along the border with Iran, Pakistani Foreign Minister Shah Mahmood Qureshi said the insurgents behind the attack were based in Iran, calling on Tehran to take action. The attack had been claimed by BRAS.

“The training camps and logistical camps of this new alliance (BRAS) ... are inside the Iranian border region,” Qureshi told reporters in Islamabad. Iran denied any state involvement.

$230 million mega airport be a harbinger of #Gwadar development. #PM #ImranKhan has vowed that his government would complete the #CPEC project as per plan at any cost, adding the project was a sign of all-weather friendship between #Pakistan & #China. https://www.brecorder.com/news/40002897

Chairman China Pakistan Economic Corridor (CPEC) Authority, Lieutenant General (retd) Asim Saleem Bajwa has said that the under-construction mega airport at Gwadar will be a harbinger of development of Gwadar city and Gwadar Port.

“Gwadar International Airport construction in progress,” said Bajwa in a tweet on Saturday, while sharing pictures of the project. “We reaffirm our commitment to launching and completing all projects in Gwadar in line with PM’s directive,” he added.

Bajwa informed that the project under construction cost about $230 million.

The Prime Minister Imran Khan on Friday vowed that the federal government would complete the CPEC project as per plan at any cost, adding the project was a sign of all-weather friendship between Pakistan and China. He added that every Pakistani would be benefitted from the mega project.

He directed concerned officials to further enhance the performance and capacity of the CPEC Authority for the early completion of the ongoing projects.

PM Khan expressed satisfaction over the performance of CPEC Authority and said the economic corridor was a best plan to bring socio-economic development which also assured the bright future of Pakistan.

#China-#Iran Deal: #India is a big loser. Chabahar port is India’s counter to the #Gwadar port in #Pakistan that is part of China’s Belt and Road initiative(BRI), if China invests heavily in Iran the Chabahar port could lose its relevance. #CPEC https://www.wionews.com/india-news/as-china-eyes-multi-billion-doll... @wionews

Indian View:

China has struck a deal with America's enemy - Iran. It's a $400 billion economic and security strategic partnership deal.

As always, China is using its chequebook to have its way. It has bought Iran over for $400 billion dollars. It is a 25-year strategic accord with an 18-page agreement that weds Iran to China for a quarter of a century.

Once it is signed, Iran will open its doors for Chinese investment not just in one or two sectors but across the Iranian economy. The Chinese presence in Iran would expand in banking, telecommunications, ports and railways, also more than a dozen projects will go to Chinese companies.

Beijing hopes to get cheap oil in return. China will walk away with a steady supply of Iranian oil at a heavily discounted rate for 25 years and this is just one side of the story of the economic aspect.

The deal also has a military dimension. There will be reportedly joint training and exercises, joint research and weapons development, even intelligence sharing as part of the agreement.

The deal will fundamentally change Iran’s relationship with China. It will put Tehran in Beijing’s corner and India could see its influence diminish overtime.

The biggest threat is to the Chabahar port. It was seen as India’s counter to the Gwadar port in Pakistan that is part of China’s Belt and Road initiative(BRI), if China invests heavily in Iran the Chabahar port could lose its relevance.

However, it is hypothetical as of today. The Iran-China agreement reportedly has not been submitted for Parliament’s approval yet and hasn’t been made public. China hasn’t shared the details of the deal yet as well. The ministry of foreign affairs in Beijing was asked about it today and it didn’t share any information.

It is not yet clear if the top brass of the Communist Party has signed off on it but the details of the deal that have leaked are reportedly part of the “final version”. Iran is not hiding the fact that it is negotiating the agreement with China. On July 5, Iran's foreign minister Javad Zarif indicated that the deal will happen and it will be presented before Iran's Parliament for approval.

The potential agreement is a big threat to India. Historically, India and Iran have enjoyed a close relationship. India was one of the biggest buyers of Iranian oil but New Delhi stopped buying oil from Iran in 2019 after the United States slapped sanctions against Iran and refused to grant any waivers to India.

Now, Trump’s “maximum pressure” policy against Tehran has failed. China went under the nose of the Americans and managed to negotiate a deal with Tehran that could create more flashpoints in West Asia and even cost India its relationship with Iran.

China-Iran pact boosts #Pakistan’s trade hub dream. Pakistan is happy over #India’s exit from #Iran and #China’s entry into Iran and hopes this emerging Iran-China strategic cooperation can become a ‘CPEC Plus’ for the region. #CPEC - Asia Times https://asiatimes.com/2021/04/china-iran-pact-boosts-pakistans-trad...

A Balochistan government senior official who requested anonymity told Asia Times that the China-Iran deal could improve security conditions in Balochistan’s restive regions, including those that border on Iran. There are currently as many as two million ethnic Baloch in Iran; the insurgents have historically received support from various outside actors.

“We hope and trust that the incursion of miscreants from the Pak-Iran border at Sistan-Baluchistan province would end as a result of infrastructure and connectivity developments in Iran,” he said.

He said that the Gwadar port and other CPEC projects in Balochistan would “pick up pace” if the security problems were resolved. “The CPEC’s security input could come down massively if the situation normalized to some extent,” he said.

Mushahid Hussain Syed, a Pakistan Muslim League-Nawaz (PML-N) senator, told Asia Times that China-backed economic activities in Iran would contribute to stability in Balochistan and by association the CPEC’s progress.


“With a proactive Chinese role in Iran – both being good friends of Pakistan – Pakistan’s Western flank will be secured, hopefully helping stability in Balochistan and strengthening the role of Gwadar port in promoting regional connectivity with China, Afghanistan, Iran, and Central Asian Republics,” Mushahid said.

“The Iran-China strategic agreement is good for the region and positive for Pakistan’s interests as it strengthens regional economic connectivity of which Pakistan is the emerging hub due to the CPEC and the Belt and Road Initiative (BRI),” Mushahid said.

He suggested that Gwadar port, the multi-billion-dollar centerpiece of the Beijing-financed CPEC, will be pivotal for transit and trade with the wider region including Afghanistan and Central Asian nations such as Turkmenistan, Uzbekistan and Tajikistan.

That’s clearly what Islamabad hopes. Pakistan’s Chief of Army Staff General Qamar Javed Bajwa recently touted the government’s new economics-oriented vision during the inaugural Islamabad Security Dialogue, which was held nearly coincident with the formal announcement of the Iran-China pact.

Bajwa’s narrative is in line with Beijing’s regional trade-promoting aim, which was further underlined in its new strategic trilateral coordination between Azerbaijan, Pakistan and Turkey. Still, whether Beijing foresees Pakistan as the hub of its Iran pact is debatable.

Cargo handling operations remained active at Karachi port and Port Qasim during the outgoing week.

https://www.hellenicshippingnews.com/karachi-port-handles-894017-to...

A total volume of 894,017 tonnes was handled at the Karachi port in which the share of imports and exports were 676,689 tonnes and 217,319 tonnes respectively.

In the import category, the share of oil and liquid cargo and containerised cargo stood at 298,082 tonnes and 251,340 tonnes followed by 21,066 tonnes of bulk cargo, 36,404 tonnes of soyabean seeds, 45,444 tonnes of wheat, 23,576 tonnes of iron and steel scrap and 786 cattle.

Export cargo handling at the Karachi port stood at 146,845 tonnes of containerised cargo followed by 1,069 tonnes of bulk cargo, 21,250 tonnes of cement, 29,000 tonnes of clinkers, 17,155 tonnes of iron ore and 2,000 tonnes of oil and liquid cargo.Around 35 ships took berth and 27 ships sailed out during the last week.

At Port Qasim, a total cargo volume of 862,621 tonnes were handled comprising 632,814 tonnes of import and 229,843 tonnes of export during the last week.

Imported cargo comprised of steel coil, coal, palm oil, motor gasoline, LNG, wheat, chemical, project cargo and containerised cargo. Goods exported included cement and containerised cargo.

Pakistan’s key CPEC port a long way from trade hub vision
Despite serious efforts to build and promote Gwadar as a global trade centre, business is scarce in the port city. A field report reveals that a lack of infrastructure hampers development and construction of a major road has left fishers worse off.

https://www.thethirdpole.net/en/regional-cooperation/pakistan-gwada...


Unlike Karachi and Qasim ports (also in Karachi), whose infrastructure expanded as they became major global freight hubs, little development had happened in Gwadar before the CPEC project’s launch in 2013.

-----------------------------

There are big plans for Pakistan’s southern coastal city of Gwadar. Pakistan and China are making a considerable effort – and pledging close to USD 700 million in investment – to transform what was once a sleepy fishing town into a vibrant trade hub, complete with a seaport, airport, major road connections and a trade zone. But the pace of development is slow, and business even slower.

“[It] must be because they [the developers] do not have the blessings of the people of Gwadar,” said Abdul Rasheed Isa, a fisher of the Khulgari Ward settlement in the port city.

A visit in April this year revealed that the only real activity at Gwadar port was undertaken by two small crabs, which had made a gargantuan effort to haul themselves up from the crystal-clear water of the Arabian Sea onto the dock. The towering blue and red cranes, brought there to load and unload shipping containers, were still.

The port is the crown jewel of the USD 62 billion China-Pakistan Economic Corridor (CPEC), which connects China’s western Xinjiang province to the Arabian Sea. It is where both countries hope the logistics of incoming and outgoing cargo will be handled for an international market.


The Gwadar port dream started in 2013, when a little-known state-owned company, the China Overseas Port Holding Company (COPHC), acquired the port for 40 years on behalf of Pakistan. About 90% of the port’s revenue is contracted to go to the Chinese company.

On paper, the port’s potential is promising. At present, it has space to berth two or three large ships with a capacity of 50,000 deadweight tonnage. By 2045, it is expected to berth 150 ships and hold up to 400 million tonnes of cargo. According to the Pakistani government, a functional Gwadar port, the country’s third deep sea port, will meet the “increasing demand for trade” that the existing Karachi and Qasim ports are “unlikely to keep pace with” on their own.

Though parts of Gwadar have had a visible facelift, the lives of its 265,000 residents, the majority of whom are poor fishers, have barely improved. In some cases, the construction of these projects has added to their problems. Most struggle with access to basic necessities such as electricity and have limited options for education.

Slow business coupled with delays to major CPEC projects in Gwadar – such as the main expressway road, coal power station and new airport – could mean that their lives are unlikely to improve any time soon.

Naseer Khan Kashani, the chair of the Gwadar Port Authority (GPA), which oversees construction and maintenance, outlined the problem with a frank admission.

Despite Gwadar’s “strategic positioning” as one of the “best deep sea ports” at the mouth of the Persian Gulf, which facilitates the movement of “one-third of global oil every year”, he said the port has failed to bring business.

“It is ready for anyone to use. It’s up to investors and traders to use it to do profitable business. We cannot trade for them,” said Kashani, adding that the creation of demand is “up to the market forces”. Incentives such as competitive handling charges, improved security and safety of cargo at the port and also during transport, speedy customs clearance and free storage for up to three months have failed to beckon traders.

Pakistan’s key CPEC port a long way from trade hub vision
Despite serious efforts to build and promote Gwadar as a global trade centre, business is scarce in the port city. A field report reveals that a lack of infrastructure hampers development and construction of a major road has left fishers worse off.

https://www.thethirdpole.net/en/regional-cooperation/pakistan-gwada...


Unlike Karachi and Qasim ports (also in Karachi), whose infrastructure expanded as they became major global freight hubs, little development had happened in Gwadar before the CPEC project’s launch in 2013.

-----------------------------

There are big plans for Pakistan’s southern coastal city of Gwadar. Pakistan and China are making a considerable effort – and pledging close to USD 700 million in investment – to transform what was once a sleepy fishing town into a vibrant trade hub, complete with a seaport, airport, major road connections and a trade zone. But the pace of development is slow, and business even slower.

“[It] must be because they [the developers] do not have the blessings of the people of Gwadar,” said Abdul Rasheed Isa, a fisher of the Khulgari Ward settlement in the port city.

A visit in April this year revealed that the only real activity at Gwadar port was undertaken by two small crabs, which had made a gargantuan effort to haul themselves up from the crystal-clear water of the Arabian Sea onto the dock. The towering blue and red cranes, brought there to load and unload shipping containers, were still.

The port is the crown jewel of the USD 62 billion China-Pakistan Economic Corridor (CPEC), which connects China’s western Xinjiang province to the Arabian Sea. It is where both countries hope the logistics of incoming and outgoing cargo will be handled for an international market.


The Gwadar port dream started in 2013, when a little-known state-owned company, the China Overseas Port Holding Company (COPHC), acquired the port for 40 years on behalf of Pakistan. About 90% of the port’s revenue is contracted to go to the Chinese company.

On paper, the port’s potential is promising. At present, it has space to berth two or three large ships with a capacity of 50,000 deadweight tonnage. By 2045, it is expected to berth 150 ships and hold up to 400 million tonnes of cargo. According to the Pakistani government, a functional Gwadar port, the country’s third deep sea port, will meet the “increasing demand for trade” that the existing Karachi and Qasim ports are “unlikely to keep pace with” on their own.

Though parts of Gwadar have had a visible facelift, the lives of its 265,000 residents, the majority of whom are poor fishers, have barely improved. In some cases, the construction of these projects has added to their problems. Most struggle with access to basic necessities such as electricity and have limited options for education.

Slow business coupled with delays to major CPEC projects in Gwadar – such as the main expressway road, coal power station and new airport – could mean that their lives are unlikely to improve any time soon.

Naseer Khan Kashani, the chair of the Gwadar Port Authority (GPA), which oversees construction and maintenance, outlined the problem with a frank admission.

Despite Gwadar’s “strategic positioning” as one of the “best deep sea ports” at the mouth of the Persian Gulf, which facilitates the movement of “one-third of global oil every year”, he said the port has failed to bring business.

“It is ready for anyone to use. It’s up to investors and traders to use it to do profitable business. We cannot trade for them,” said Kashani, adding that the creation of demand is “up to the market forces”. Incentives such as competitive handling charges, improved security and safety of cargo at the port and also during transport, speedy customs clearance and free storage for up to three months have failed to beckon traders.

With #Taliban Dominance, #India's #Chabahar Port Could Become a Dead Investment. #Americans have partnered with #Uzbekistan, #Afghanistan and #Pakistan to make a new north-south connectivity corridor bypassing #Iran. #CPEC #Gwadar https://thewire.in/external-affairs/with-taliban-takeover-indias-ch... via @thewire_in

The spectre of the collapse of the Ashraf Ghani government of Afghanistan and the takeover by the anarchic, ragtag group of Taliban, even while the US has left the country to its miserable fate, is increasingly driving a nail in many bilateral and multilateral arrangements between Kabul and the world.

Undoubtedly, the most hurt would be India and its much vaunted project of the Chabahar Port in Iran’s east, which was meant to allow New Delhi an opportunity to side-step Pakistan and take the land route to Afghanistan and Central Asia.

Now Chabahar, from Iran and India’s perspective, seems like a dead investment — a dream gone sour.

“Indians just took too much time to complete the project. Now, changed circumstances and alternative connectivity routes are being conjured up by other countries to make Chabahar irrelevant,” claims an Iranian source.

He may be right.

Much of the blame for the slow pace at which the Chabahar project progressed should rest on India and its over-cautious attitude. The current government in Delhi did not want to do anything to antagonise the US government after it had imposed sanctions on Iran.

Now, the Americans have partnered with Uzbekistan, Afghanistan and Pakistan to make a new connectivity corridor.

So where does it leave India?

Ironically, India’s Chabahar engagement, though old, gained momentum after former US president Barack Obama ended sanctions against Iran and signed the nuclear deal. His successor, Donald Trump, had other ideas. He, rather unceremoniously, canceled the deal and clamped claustrophobic sanctions on Iran, but gave freedom to India to carry on with the project as it benefited Afghanistan.

The Indian government, through the periodic visits of its external affairs minister, S. Jaishankar, and other officials, has routinely expressed its commitment to complete the project. However, the Iranians have a different story to tell.

And it is not a happy story with a happy ending.

--------------

Not only did India baulk at its promise to provide a line of credit in 2018 to build the railway route from Chabahar to Zahedan, the Indian company that is supposed to build and manage port Shahid Behesti, India Port Global, is a leaderless entity that is in a state of drift.

Iranian sources allege that there is a conscious attempt by China, which is furiously building its Gwadar project in the Sea of Oman, and, now, the US, to puncture Chabahar. Or else, what was the reason that the US should announce a ‘connectivity project’ in Tashkent with Uzbekistan, Afghanistan and Pakistan that does not include Iran or India?

Jennifer Murtazashivilli from the Center of Governance, University of Pittsburg, was quoted by the Voice of America arguing: “Given the difficult relations between the US and Iran, it would be difficult to secure funding for that southward route, so it is more politically feasible to connect Uzbekistan through Afghanistan and Pakistan, than to go through Iran right now.”

China to invest $15 billion in petrochemical industry at Pakistan's Arabian Sea port

https://www.arabnews.pk/node/1931571/pakistan

#China to invest $15 billion in #petrochemical industry at #Pakistan #Gwadar port. #CPEC has seen #Beijing pledge over $60 billion for #energy & #infrastructure projects in Pakistan, central to China’s (BRI) to develop land & sea trade routes globally

Investment would include a power pipeline project from Gwadar port to western China
Pakistan said last month it is formulating a strategy to improve the security of Chinese companies operating in the country

“Chinese companies would invest in the petrochemical sector in Gwadar, including the project of energy pipeline from Gwadar to China,” Board of Investment (BOI) secretary Fareena Mazhar told the state-run Associated Press of Pakistan.
She added that talks related to the projects were underway, as BOI is working on 50 reforms to create a conducive investment environment and improve the ease of doing business in Pakistan.
Chinese business leaders met Prime Minister Imran Khan in Islamabad last week and reposed their confidence in Pakistan’s “policy support and security,” months after a blast killed nine Chinese nationals working on a CPEC project in northwestern Pakistan.
In a statement after the meeting, Khan’s office said he would hold monthly meetings to “review progress regarding issues faced by Chinese investors.”
Last month, Interior Minister Sheikh Rashid Ahmed announced Pakistan was formulating a strategy to improve the security of Chinese nationals and companies operating in the country.
CPEC has seen Beijing’s pledge over $60 billion for energy and infrastructure projects in Pakistan, central to China’s wider Belt and Road Initiative (BRI) to develop land and sea trade routes in Asia and beyond.

• Coastal comprehensive development zone to be established on KPT’s reclaimed land
• $3.5bn plan envisages new berths for port, new fishery port, harbour bridge to unlock Pakistan’s Blue Economy
• Centre calls the initiative a game-changer for Pakistan

https://www.dawn.com/news/1648433/cpec-panel-okays-ambitious-karach...

KARACHI: Calling it a “game-changer”, the federal government on Satur­day unveiled an ambitious plan to rebuild Karachi’s coastline under the China-Pakistan Economic Corri­dor (CPEC) with $3.5 billion “direct Chinese investment” that aims to overhaul city’s seaboard with new berths for the port, a new fishery port and a ‘majestic harbour bridge’ connecting it with Manora islands and Sandspit beach.

The Karachi Coastal Co­m­prehensive Develop­ment Zone (KCCDZ) — spread over 640 hectares or 1,581 acres on the western backwaters marsh land of the Karachi Port Trust (KPT) leading to revamp one of the oldest city slums Machhar Colony relocating its more than half a million population — is an initiative of the Ministry of Maritime Affairs.

The KCCDZ is the latest addition to CPEC projects aimed at providing Karachi with an ultra modern urban infrastructure zone, placing it among the top port cities of the world.

The announcement came from the top when a key member of Prime Minister Imran Khan’s cabinet sha­red some details of the project and claimed it carried “enormous potential for global investors as well”.

“And the best thing of this project is that it’s solely based on foreign [Chinese] investment without any loan,” said Minister for Mar­i­time Affairs Syed Ali Zaidi while speaking to Dawn.

Also read: Slow pace of work on CPEC irks Chinese companies

“The Chinese work so fast and I guess that it would not take more than five or six years to complete the project. Under the agreed plan, we would relocate some 20,000 to 25,000 families from Machhar Colony and relocate them. Believe me it’s a huge thing for Pakistan. It’s something massive. It would bring multifold advantages to Pakistan’s maritime economy and further strengthen our coastal development.”


He said after assuming the office as the minister for maritime affairs he vigorously looked for the opportunity for the KCCDZ and made all-out efforts to include it in the CPEC projects. For this purpose, he added, he consulted a number of Chinese companies, investors and officials of the neighbouring country and his efforts finally yielded results.

Earlier, the federal minister shared the “monumental decision” on a social me­dia platform, coming up with ske­tchy details of the KCCDZ. He, however, did not explain terms and conditions that convinced the Chinese investors to pour in $3.5 billion (around Rs592 billion).

“A monumental decision was taken during the 10th Joint Cooperation Commi­ttee (JCC) on CPEC, held on 23rd September 2021 at Islamabad and Beijing,” Mr Zaidi tweeted while sharing a formal statement of the announcement.

“The two countries agreed to include KCCDZ under the CPEC framework. KCCDZ, an initiative of the Ministry of Maritime Affairs focuses on providing Karachi with an ultra modern urban infrastructure zone, placing Karachi amongst the top port cities of the world.”

The minister also shared animated and picturesque images of a developed KCCDZ, showing a huge developed coastline dotted with multiple buildings, concrete structures and planned neighbourhoods without mentioning their utilities. He claimed all the developments would take place over “reclaimed area of the KPT” spanning over huge 640 hectares or 1581.474 acres.

“Developed on reclaimed area of approximately 640 hectares on the Western back waters marsh land of KPT, KCCDZ will be a flagship project for not only Pakistan but the entire region,” the statement claimed.

• Coastal comprehensive development zone to be established on KPT’s reclaimed land
• $3.5bn plan envisages new berths for port, new fishery port, harbour bridge to unlock Pakistan’s Blue Economy
• Centre calls the initiative a game-changer for Pakistan

https://www.dawn.com/news/1648433/cpec-panel-okays-ambitious-karach...

KARACHI: Calling it a “game-changer”, the federal government on Satur­day unveiled an ambitious plan to rebuild Karachi’s coastline under the China-Pakistan Economic Corri­dor (CPEC) with $3.5 billion “direct Chinese investment” that aims to overhaul city’s seaboard with new berths for the port, a new fishery port and a ‘majestic harbour bridge’ connecting it with Manora islands and Sandspit beach.

The Karachi Coastal Co­m­prehensive Develop­ment Zone (KCCDZ) — spread over 640 hectares or 1,581 acres on the western backwaters marsh land of the Karachi Port Trust (KPT) leading to revamp one of the oldest city slums Machhar Colony relocating its more than half a million population — is an initiative of the Ministry of Maritime Affairs.

The KCCDZ is the latest addition to CPEC projects aimed at providing Karachi with an ultra modern urban infrastructure zone, placing it among the top port cities of the world.

The announcement came from the top when a key member of Prime Minister Imran Khan’s cabinet sha­red some details of the project and claimed it carried “enormous potential for global investors as well”.

“And the best thing of this project is that it’s solely based on foreign [Chinese] investment without any loan,” said Minister for Mar­i­time Affairs Syed Ali Zaidi while speaking to Dawn.

Also read: Slow pace of work on CPEC irks Chinese companies

“The Chinese work so fast and I guess that it would not take more than five or six years to complete the project. Under the agreed plan, we would relocate some 20,000 to 25,000 families from Machhar Colony and relocate them. Believe me it’s a huge thing for Pakistan. It’s something massive. It would bring multifold advantages to Pakistan’s maritime economy and further strengthen our coastal development.”


He said after assuming the office as the minister for maritime affairs he vigorously looked for the opportunity for the KCCDZ and made all-out efforts to include it in the CPEC projects. For this purpose, he added, he consulted a number of Chinese companies, investors and officials of the neighbouring country and his efforts finally yielded results.

Earlier, the federal minister shared the “monumental decision” on a social me­dia platform, coming up with ske­tchy details of the KCCDZ. He, however, did not explain terms and conditions that convinced the Chinese investors to pour in $3.5 billion (around Rs592 billion).

“A monumental decision was taken during the 10th Joint Cooperation Commi­ttee (JCC) on CPEC, held on 23rd September 2021 at Islamabad and Beijing,” Mr Zaidi tweeted while sharing a formal statement of the announcement.

“The two countries agreed to include KCCDZ under the CPEC framework. KCCDZ, an initiative of the Ministry of Maritime Affairs focuses on providing Karachi with an ultra modern urban infrastructure zone, placing Karachi amongst the top port cities of the world.”

The minister also shared animated and picturesque images of a developed KCCDZ, showing a huge developed coastline dotted with multiple buildings, concrete structures and planned neighbourhoods without mentioning their utilities. He claimed all the developments would take place over “reclaimed area of the KPT” spanning over huge 640 hectares or 1581.474 acres.

“Developed on reclaimed area of approximately 640 hectares on the Western back waters marsh land of KPT, KCCDZ will be a flagship project for not only Pakistan but the entire region,” the statement claimed.

Pakistan and China unveil ambitious plan to develop Karachi coast

https://asia.nikkei.com/Spotlight/Belt-and-Road/Pakistan-and-China-...


KARACHI -- In an ambitious turn, Pakistan and China have agreed to develop the Karachi coast, possibly shifting away from Gwadar as the center stage of the Belt and Road project in Pakistan, following ongoing problems at the southwestern province of Balochistan.

A memorandum of understanding was signed for the Karachi Coastal Comprehensive Development Zone project during the recently held 10th Joint Cooperation Committee meeting of the China-Pakistan Economic Corridor, or CPEC, after a gap of almost two years.

Based on details shared by Pakistan, China will invest $3.5 billion, separately confirmed by a Chinese foreign ministry spokesperson, in the project which includes adding new berths to Karachi port, developing a new fisheries port and a 640-hectare trade zone on the western backwater marshland of the Karachi Port Trust. The project also envisages building a harbor bridge connecting the port with the nearby Manora islands.

----------------------------------

The writing was already on the wall for some. In June, Saudi Arabia decided to shift a proposed $10-billion oil refinery to Karachi from Gwadar. This was a major shock to the government's plans of building an energy hub in Gwadar, which is facing massive protests due to lack of water and power.

Now, Gwadar stands to lose even more foreign investment. Karachi is the largest city and the main commercial hub of Pakistan and also home to the busiest port.

Malik Siraj Akbar, a South Asia analyst based in Washington, believes that Karachi offers not only better infrastructure, but also tighter law and order, making it an ideal hub for CPEC. "The Chinese want CPEC to leave its mark as a symbol of rising Chinese power without particular interests in any specific region in Pakistan," he said.

Krzysztof Iwanek, head of the Asia Research Center at Warsaw's War Studies University, said that the challenges of developing a major port in an underdeveloped area like Gwadar must have been factored in by China from the outset.

"[I]t may be assumed that Chinese involvement in Gwadar may be at least partially strategic. Karachi, in turn, is Pakistan's most important port, and, hence, Chinese involvement there may be of purely economic nature," Iwanek said.



Despite the signing of the agreement and expression of commitment from the Chinese side, analysts fear that implementation will be difficult.

Iwanek believes that Belt and Road projects are under scrutiny in China, as funds are no longer distributed so liberally as loans and there is a focus on more feasible projects. He suggested that it will not be easy for Pakistan to draw investments or loans for this project because China is lending with a greater focus on "pragmatism" now.

Arif Rafiq, president of Vizier Consulting, a New York-based political risk assessment firm, shares that view and said that the project had a long way to go.

"Feasibility studies, including on the environmental impact, need to be conducted. The dredging will destroy existing mangroves, which serve as a vital, natural defense against storms and erosion," he said. He claimed that as many as 500,000 people will have to be resettled, which will be a politically contentious process.

Gwadar's sudden fall from grace has implications for wider Belt and Road enterprises. Analysts said that the way Pakistan and China are dealing with Gwadar implies that any problematic project of Belt and Road, irrespective of its potential, can either be dropped or put on the back burner.

"Pakistan and China had an opportunity to develop [Gwadar] port in a conflict zone but several factors, such as corruption, mismanagement, lack of public support and transparency, have led to a loss of interest in the Gwadar Port," said Malik, as he warned that other problematic Belt and Road projects could face the same fate.

Gwadar airport to be operational by December
$246 million greenfield Gwadar International Airport (NGIA) being built at an area of 4,300 acres

https://tribune.com.pk/story/2360858/gwadar-airport-to-be-operation...


QUETTA:
The test flight from new Gwadar International Airport would be started from December this year as the construction work on site has been expedited, an official of Gwadar Development Authority said on Thursday.

The new $246 million greenfield Gwadar International Airport (NGIA) being built at an area of 4,300 acres would be made operational before the deadline which was September 2023, the official said.

The government has also expanded the 50-bed Pak-China Friendship Hospital Gwadar to 150 beds state-of-the-art medical centre in order to ensure best health care facilities for the people of Gwadar.

The authority would ensure state-of-the-art free medical facility to the inhabitants of the port city of Gwadar from January next year, he said.

The officials were making all-out efforts to expedite the infrastructure and development projects for its timely completion.

The GDA said the authority has expedited the implementation of old town rehabilitation plan of Gawadar to provide best infrastructure and provide every facility to the masses of the port city. With the support of federal government, the project worth Rs3.3 billion for old town rehabilitation of Gwadar was in full swing to develop the city on modern lines to end the sense of deprivation among the people of the area, he addd.

The federal government would be funding 67 per cent of the total cost while Balochistan government would bear the remaining cost for the old town rehabilitation under the Gwadar development plan.

Under the plan, water drainage, supply and distribution of utility projects would be completed soon, besides ensuring the supply of clean drinking water to the dwellers.

The official said the water supply issue in Gwadar would be resolved in the short period of three months as desalination plant is also in progress to cater to the need of whole city.

The authorities have been directed to strictly adhere to Gwadar Master Plan while carrying out development and other public welfare projects in the city.

The 19.49-km expressway inaugurated on Friday is aimed to meet the urgent need of the locals and promote sustainable development in Pakistan's Gwadar.


https://english.news.cn/20220605/702d5b891f1147cdb95b088673ecf2f1/c...



GWADAR, Pakistan, June 5 (Xinhua) -- The inauguration ceremony of the China-aided Eastbay Expressway of Gwadar port was held on Friday in Gwadar city of Pakistan's southwest Balochistan province.

As an important early harvest project under the China-Pakistan Economic Corridor (CPEC), the 19.49-km expressway was officially started in 2017 by the China Communications Construction Company, with an aim to meet the urgent need of the locals in Gwadar and promote the sustainable development of the area.

Addressing the ceremony, Pakistani Prime Minister Shahbaz Sharif thanked China for the grant and said that China has built a very high-quality expressway which links the port to the coastal highway ahead.

It will enhance connectivity and help the transportation of goods from the port all the way to the country's southern port city of Karachi in the future, said the prime minister.

"Pakistan is determined to speed up the development of Gwadar," Sharif said, adding that China has donated solar panels to thousands of families in Gwadar, aided the construction of a hospital and other livelihood infrastructures, and will fund a desalination plant.

On the same occasion, Pang Chunxue, charge d'affaires of the Chinese Embassy to Pakistan, said China attaches great importance to people's livelihood in Gwadar, and is willing to continue promoting the development of Gwadar's healthcare, education, vocational and technical personnel training and other livelihood fields.

Pang said the construction of the expressway aims to benefit the local people, and the concerns of local fishermen were fully considered in the design and construction.

China will strive to continue to help solve local people's problems such as shortage of electricity and fresh water, and promote the construction of a smart, green and modern Gwadar Port, so that local people can share the high-quality development of the CPEC, Pang said.

"It is our joint efforts that ensured the successful delivery of this CPEC project in Gwadar."

"When the New Gwadar International Airport is completed in the future, it will work with the Eastbay Expressway to promote Gwadar as a regional transportation hub and create a better life for the local people," Pang added. ■

New Gwadar International Airport is a Class 4F airport. It is only the second greenfield airport in Pakistan.

https://youtu.be/6VBF1uIkDx8

The airport's 4C, 4D, 4E, 4F... are the flight zone levels, which are represented by numbers + letters. The number indicates the length of the runway, and "4" indicates 1800 meters or more. The letters indicate the wingspan and wheelbase of the aircraft that can take off and land, from A to F, the larger it becomes.


------------------

Karachi Airport Certified for Aircraft Operation up to Aerodrome Reference Code 4E

---------------------------

Islamabad Airport has been certified for aircraft operation up to aerodrome reference code 4F that allows Airbus A380 flight operations.


The purpose of this AIRAC AIP Supplement is to notify the aviation industry of the aeronautical
ground facilities, navigational equipment and services that are available at Islamabad Int’l airport for
aerodrome reference code 4F Cargo / Commercial Operations. The airport is located at a distance of
14.08NM from Islamabad city.


https://caapakistan.com.pk/Upload/AIS/AIRAC%20AIP%20Supplement%20S-06(18).pdf

Key Highlights 

For a greener and richer Gwadar: B&R Tropical Arid Non-wood Forest Center

http://en.ce.cn/Insight/202206/15/t20220615_37760375.shtml

GWADAR, Jun. 15 (Gwadar Pro) – “In the eyes of outsiders, high temperature and scorching sun may be a disadvantage of Gwadar, but in our view, the light and heat conditions here are a natural advantage for the development of agriculture and non-wood forest”, noted Zhang Saiyang, vice director of the Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest and doctoral candidate of Central South University of forestry and technology, in an exclusive interview with Gwadar Pro.

The Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest was jointly initiated and established by Central South University of forestry and technology, China Overseas Ports Holdings Co., Ltd. and Yulin Holdings Co., Ltd. for Gwadar ecological construction and industrial development. Since 2018, it has systematically improved the local soil conditions in Gwadar. Zhang told Gwadar Pro that the Chinese team combined the organic fertilizer collected from local sheep farm and leaves and other humus to mix with local soil in a certain proportion to improve the fertility and pH of the local soil. Besides, the local soil conditions were greatly improved by the team members planting legumes to use the nitrogen fixation of legume rhizobia.

“In addition to the soil, moisture is our long-term focus as well. With arid climate here, the irrigation method appears to be particularly important,” Zhang said, “after enhancing the soil water retention capacity through soil improvement, we mainly use a combination of sprinkling irrigation and drip irrigation to maximize water conservation. Not to mention that our selected varieties are drought tolerant crop with very developed root systems.”

By now, nearly 100,000 seedlings such as bananas, dates, orchid and figs have been cultivated here. Among them, bananas (Musa nana) are selected local varieties that can adapt to drought and high temperature and produce a large amount of fruit. In May, the center successfully held the first non-wood forest products-banana harvest festival in Gwadar Port. “Our production of bananas has attracted the attention of local farmers, who hope to buy banana seedlings to grow on their own land,” Zhang mentioned.

Moreover, figs are also a key economic crop here. Hundreds of fig seedlings have already produced a lot of fruit in just one month. More than 10 hours of sufficient sunlight per day and the temperature difference between day and night in the Gwadar region allow figs, a drought-tolerant and light-loving plant, to accumulate more sugar. According to the promotion plan, the fresh and dried figs launched by the center will have a place in the market.

“In addition to bananas and figs, which are familiar to Chinese people, the endemic crops of Pakistan, including Sesbania grandiflora and Ziziphus spina-christi, can also give full play to their economic value through our breeding techniques,” Zhang listed the local valuable economic crops one by one, “the leguminous plant Sesbania grandiflora is resistant to high temperature and drought, and has a large amount of fruit. It is a very good tree species for ecological greening and economic forest. Its fruit, as a woody vegetable, has been widely promoted by us in Gwadar, and then sold in the market. The local unique Ziziphus spina-christi is also drought-tolerant and light-loving, which can bear fruit several times a year. The seedling breeding, fresh fruit sales and juice processing of it have also been put on the agenda.”

As for the future planning, Zhang Saiyang mentioned that the center has set up “Gwadar Classroom” to train local workers. Opened in March this year, it has trained the first batch of modern agricultural skilled workers in the local area, laying a solid foundation for the local development of agriculture and non-wood forest industry, as well as promoting farmers’ employment and using their own land to start businesses.

Can President Ebrahim Raisi turn Iran’s economic Titanic around?
By Nadereh Chamlou

https://www.atlanticcouncil.org/blogs/iransource/can-president-ebra...

According to the International Monetary Fund, Iran’s Gross Domestic Product (GDP)—based on Purchasing Power Parity (PPP)—accounted for 1.86 percent of the world’s GDP (PPP) in 1980. By 2021, its share had declined to 0.8 percent. Within the same timeframe, South Korea’s share rose from 0.6 to 1.7 percent and Turkey’s from 1.2 to 2 percent. This means that Iran has lost considerable economic power on the global stage in comparison to where it was in 1980. Economic underperformance combined with a near trebling of Iran’s population has also led to a per capita income that has barely grown in three decades and one that falls short of its comparators.

Low growth, high inflation, and widespread un- or underemployment have diminished the purchasing power of many income deciles, causing widening income inequality. Iranians below the national poverty line have doubled in the past three years, now encompassing 35 percent of the population. There are daily reports of a decline in the purchase of basic food staples, such as a 50 percent drop in meat, dairy, eggs, and fruits. Even more affordable imported rice, rather than the domestic variety, is being sold one cup at a time rather than in bulk as was done before. There is a shortage of affordable housing, and an average of 40 percent of Iranians—and as high as 70 percent in Tehran—are “house-poor,” i.e. spend the lion’s share of their income on housing, leaving them exposed to sudden poverty in case of cost of living shocks. The anxiety about an ever-increasing uncertain future has also created a mental health crisis.

Unemployment among the educated youth is as high as 40 percent, and one in three Iranians is eager to emigrate. Since the revolution, Iran has become a leading country in brain drain. For instance, in just one category and in 1399 alone (the last Iranian calendar year: March 2019-March 2020), some 250,000 nurses left Iran. It’s a critical number for a country with one of the earliest and worst coronavirus outbreaks in the Middle East. Supreme Leader Khamenei has weighed in by issuing a stern warning against those who encourage the skilled to emigrate, calling it treason.

Officials are quick to blame Iran’s economic underperformance on decades of sanctions imposed by the United States, which have indeed impacted and distorted Iran’s economy. Yet, a 2021 paper co-authored by Hashem Pesaran, Iran’s most renowned economist, faults predominantly domestic policies. The study examines foreign exchange fluctuations and output growth as the leading indicators since 1989. It finds that 80 percent of foreign exchange fluctuations and 83 percent of variations in output growth cannot be explained by sanctions. These “most likely relate to many other latent factors that drive the Iranian economy,” writes Pesaran. Indeed, “state-dominated institutions, heavy-handed bureaucracy, and a banking sector plagued with problems are Iran’s self-imposed sanctions,” concurs Roozbeh Pirouz, a British-Iranian entrepreneur.

The Islamic Republic’s economic model, as designed and implemented by its founders, has failed to fulfill in the last forty-three years any of the grandiose promises that Ayatollah Khomeini made to the Iranian people, such as affordable housing, free utilities, and the eradication of poverty.

Oman offer to build Gwadar railway conjures Pakistan port's past - Nikkei Asia

https://asia.nikkei.com/Spotlight/Belt-and-Road/Oman-offer-to-build...

ISLAMABAD -- A company from Oman is looking to invest in a train line that would link the Pakistani port town of Gwadar -- envisioned as a key stop on China's Belt and Road infrastructure network -- with Pakistan's main railway system.

The proposed multibillion-dollar project could go a long way toward resolving the seafront city's lack of rail connectivity. It also conjures up the past of Gwadar, which was part of Oman for 175 years. But at the same time, Pakistan's turbulent political situation is casting doubt on the prospects for pushing the plan forward and realizing the port's potential.

Earlier this month, officials from Anvwar Asian Investments, an Omani project financing firm, met with officials of Pakistan's Board of Investment and expressed interest in building a 1,087-kilometer railway between Gwadar and Jacobabad in central Pakistan. The investment would be worth $2.3 billion, and the Omani side says it is ready to provide an immediate tranche of $500 million as initial financing, according to the BOI.

Many see the plan as fitting, given the history that binds Gwadar with Oman -- about 450 km away, across the mouth of the Gulf of Oman.

In 1783, the ruler of what was then Kalat State -- now Balochistan -- gifted Gwadar to Oman's Taimur Sultan, a defeated prince on the run, who later mounted a comeback and reigned as sultan in Muscat. Gwadar remained part of Oman until roughly a decade after Pakistan's inception, when Islamabad purchased it in 1958 with British help.

Many of Gwadar's older residents still have Omani nationality as well.

Nasir Sohrabi, president of the Rural Community Development Council in Gwadar, said Oman has been the primary overseas destination for the people of Gwadar, even after the town became part of Pakistan. "Plenty of people from Gwadar live in Oman and do business or work as employees in many sectors, including the army," he told Nikkei Asia.

Oman is well-regarded among many locals. Sohrabi added that when Gwadar suffered severe power shortages in 2001, Oman's then-ruler, Sultan Qaboos, gave the city 45 power generators.

"This is one instance of the people of Gwadar having a special bond with Oman," Sohrabi said.

The railway investment offer, if it comes to fruition, would significantly ease access to Gwadar and its Chinese-built and operated port, part of the $50 billion China-Pakistan Economic Corridor.

Despite being in the middle of BRI activity in Pakistan, no train lines run to Gwadar, and uncertainty shrouds plans for other railway upgrades under CPEC. Plans call for improving tracks between Peshawar and Karachi, the latter of which is about 600 km from Gwadar. But this project, known as Main Line-1 or ML-1, appears at risk of being shelved due to a disagreement on costs between Islamabad and Beijing, according to local reports in April.

"China wanted ML-1 to have a price tag of $9 billion, which Pakistan reduced to $6.8 billion," an official who deals with the planning of federal projects in Pakistan told Nikkei Asia on condition of anonymity, as he is not authorized to talk to the media.

The official added that Islamabad wants loans at a lower rate than what Beijing is prepared to offer.

Sohrabi stressed that Gwadar can never be a successful major port without a strong railway network.

"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."

Oman offer to build Gwadar railway conjures Pakistan port's past - Nikkei Asia

https://asia.nikkei.com/Spotlight/Belt-and-Road/Oman-offer-to-build...


"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."

Some see the Omani offer to develop Gwadar's infrastructure as a quid pro quo effort to support CPEC. China is investing in an industrial park in Oman's Duqm, a port town about 1,000 km south of the Strait of Hormuz, a key shipping lane.

Yet, Oman's Anvwar Asian Investments is not the only one interested in building a railway link for Gwadar.

"A Singaporean company, Pathfinder, has expressed its interest to invest $5 billion to develop a high-speed rail network from Gwadar to Hub," a town in Balochistan, Saeed Ahmed Sarparah, chairman of the Balochistan Board of Investment and Trade, told Nikkei. He added that the Singaporean offer is undergoing an assessment by the federal government.

Neither the Omani company nor the Singaporean one had responded to requests for comment as of publication time.

Some are skeptical about the chances of moving forward with such a high-stakes, long-term endeavor given the persistent political instability in Pakistan. The coalition government of Prime Minister Shehbaz Sharif is locked in a power struggle with the man he replaced, Imran Khan, amid an economic crisis. Khan now faces terrorism charges. And investments in Balochistan, whether by China or a Canadian gold miner, have become targets of separatists.

Aslam Bhootani, a member of the National Assembly representing Gwadar, told Nikkei he was unaware of the rail investment offers as he had "not been taken into confidence yet."

But Bhootani said, "I do not see how Oman and Singaporean companies can benefit from investing in the rail network of Gwadar at such a turbulent time."