A view of the Gwadar port. — Photo by AFP

ISLAMABAD: China took control of Pakistan's Gwadar port on Monday as part of its drive to secure energy and maritime routes that also gives it a potential Arabian Sea naval base, sparking Indian concern.

“The contract of operation of Gwadar port is formally given to China. Today, the agreement is transferred from the Port of Singapore Authority to China Overseas Ports Holding Company Limited,” President Asif Ali Zardari announced.

“The award of this contract opens new opportunities for our people... It gives new impetus to Pakistan-China relations,” added Zardari in a speech broadcast live on television.

On January 30 the Pakistani cabinet approved the transfer of Gwadar, currently a commercial failure cut off from the national road network, from PSA International to the state-owned China company.

The Pakistanis pitched the deal as offering an energy and trade corridor that would connect China to the Arabian Sea and Strait of Hormuz, a gateway for a third of the world's traded oil, overland through an expanded Karakoram Highway.

Experts say it would cut thousands of kilometres off the distance which oil and gas imports from Africa and the Middle East have to travel to reach China.

China paid about 75 per cent of the initial $250 million used to build the port but in 2007 PSA International won a 40-year operating lease. Then-ruler Pervez Musharraf was reportedly unwilling to upset Washington by giving control of the port to the Chinese.

On February 6 Indian Defence Minister AK Antony said New Delhi was concerned by Pakistan's decision to transfer management of the deep-sea port to China, which has interests in a string of other ports encircling India.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Hasty transition
Updated 05 May, 2024

Hasty transition

Ostensibly, the aim is to exert greater control over social media and to gain more power to crack down on activists, dissidents and journalists.
One small step…
05 May, 2024

One small step…

THERE is some good news for the nation from the heavens above. On Friday, Pakistan managed to dispatch a lunar...
Not out of the woods
05 May, 2024

Not out of the woods

PAKISTAN’S economic vitals might be showing some signs of improvement, but the country is not yet out of danger....
Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...