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KARACHI: Pakistan is set to sign a 40-year-lease with a Chinese company to develop a massive special economic zone in the deep sea port of Gwadar, officials said on Wednesday.
The contract is part of the $46 billion China-Pakistan Economic Corridor (CPEC) that will link western China to the Arabian Sea with infrastructure, energy and transport projects.
The contract assigning the 2,300 acre swathe of tax-exempt land to China Overseas Port Holding Company (COPHC) is likely to be signed this month or October, Dostain Khan Jamaldini, chief of the Gwadar Port Authority (GPA), said.
Also read: CPEC to benefit entire region, say analysts
As part of the wider plans, “work on the Gwadar International Airport would start in the next couple of months and we are quite hopeful of completion of the national highway connecting Gwadar with the north within the next month”, he added.
Pakistan is also raising a special security force to protect the port.
Abdul Razzaq Durrani, the director general of GPA, confirmed the deal.
Gwadar port was built in 2007 with Chinese technical help and financial assistance of some $248 million.
But acquiring the land from private owners to build the economic zone took several years and cost the Balochistan government around $62m, Mr Durrani said.
Simbal Khan, a geo-political analyst, said that China had made similar deals in Africa, Vietnam, Sri Lanka and Bangladesh and the project was of great strategic value to both countries.
“Pakistan is looking at the CPEC project as a game changer, kick-starting an era of infrastructure growth and investment. The land deal is just part of the Gwadar port infrastructure that needs to develop to realise the expectations of Pakistan and China from this mega project,” she said.
Published in Dawn, September 10th, 2015
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Comments (45) Closed
Sep 10, 2015 07:04am
Accelerate the process,it's rather slow.
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Sep 10, 2015 07:08am
CPEC is a good thing howeve I think it is being oversold as a solution to all of Pakistans economic woes.
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Sep 10, 2015 07:28am
As a Indian I appreciate the efforts of both the countries for inking and materializing the development of Pakistan, which contribute to create jobs, poverty eradication and also sectorial violence. I hope there will be some sane and good comments on Indo-Pak relationship rather than instigate comments from Pakistan politicians.
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Sep 10, 2015 09:26am
@With due respect
It is infrastructure devlopment project not a trading transaction. It will take time
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Sep 10, 2015 09:28am
Anxious times for Imran Khan. Imran Khan that is why everyone says that deliver and you will not have to be anxious anymore. Thing is that to deliver even with limited resources. For your case I would say 'empty vessel always makes the loudest noise'. Now come on streets find some other issue and start defaming PML N only to shrug-off the other performance pressures that you are facing from PML N.
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Sep 10, 2015 09:48am
Go ahead Pakistan. Its your time to play the music. Pakistan is changing accept or not.
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Sep 10, 2015 09:52am
@M. Naeem Paracha-UAE How foolish it is you put politics in it? China-Pak relation do not depends on any political party but they are country to country. Do you know who signed MOU of CPEC? It was Zardari in 2012. And who gave Gawder to Chinese it was Musharaf. So don't play politics here pak-china relation don't depends on Nawaz sharif or PML-N.
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Sep 10, 2015 09:56am
We need to understand that infrastructure expansion is good however strategic value does not directly translate into economic value. I see contradicting values for both China & Pakistan. While it may bring strategic value to China we need to worry about what economic value does it bring to Pakistan. Otherwise it will be similar to starting a business first and analyzing the venture value later. Good Luck.
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Sep 10, 2015 10:05am
The process should be completed speedily especially for installation of power plants to generate electricity .
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Sep 10, 2015 10:08am
Well done Pakistan...
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Sep 10, 2015 10:12am
@dwaraka nath Thanks dear for your appreciation...Salute to your good and positive thinking regards Pakistan and China's relationship.
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Sep 10, 2015 10:25am
I wish good luck!
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Sep 10, 2015 10:42am
another nadipur project. I fail to understand how is Pakistan going to pay loan of billion 46$( it is not investment BUT LOAN), when Chinese's economy is receding at alarming rate. Pakistan is going to become dumping ground for over produce inventory and excess manpower asking for jobs. next 8-12 years china is going to stablise economy instead of undertaking ambitious projects in Xinjiang ( Pakistani fantasy) . if this project fails it is only one country who is going to bear cost, this deal is justified only if looked through olive green prism. policy of putting all eggs in one basket has failed with USA and Arabs earlier, at least earlier deals had fog of faith/ hope .
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Sep 10, 2015 10:48am
Can somebody tell in simple words, how Pakistan will benefit with this deal. Chinese company is getting tax exemption, probably free land, free security and goods will be transported to China. I guess China will invest all the money but indirectly taking over this port and 2,300 acre land. Probably some of the Pakistani goods will also be exported/imported from this port and Karachi port will loose business. It is possible that China will pay some kind of usage charges to Pakistan but I have not heard/seen any $$ amount per Tonmentioned anywhere. Can somebody provide detail immpassionately without any politics.
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Sep 10, 2015 10:51am
A rising Pakistan.
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Sep 10, 2015 11:05am
More concentration is needed. It will sure take time, but should not be delayed due to any political or any other pressure, internal or external.
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Sep 10, 2015 11:07am
@M. Naeem Paracha-UAE
I dont think there is any need to IK. What you think about Nandipore Project, QASP in Bahawalpore and many more.
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Sep 10, 2015 11:16am
Hope Gen. Raheel gets extension till the completion of this project and NAP.
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Sep 10, 2015 11:30am
Well done Pakistanis. You need to develop similar zones in every city or town so that your country can become a major economic power and your people can get employment.
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Sep 10, 2015 12:05pm
If Nawaz Sharif stayed for an other 4 years Pakistan will definitely be improved. Good luck to Nawaz Sharif!!
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Sep 10, 2015 12:09pm
Hope this leads to more jobs for Pakistanis and development of Balochistan instead of just profits for a few Chinese companies and Pakistani politicians.
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Sep 10, 2015 12:17pm
@M. Naeem Paracha-UAE If we have this type of mentality we will never ever be among developed countries.
It is the responsibility of the state to provide shelter, foods, clean drinking water and a good job market to it citizen and PMLN govt is unable to get all these to a common man at a reasonable price.
IK is responsible for everything in pakistan and NS is doing all the good work. We pakistanis are a lazy and stupid nation who believes in one success and forgot 1000 failures.
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Sep 10, 2015 12:41pm
Excellent news and double the speed to complete it.
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Sep 10, 2015 12:49pm
Rapid urbanization and over exploiting the natural resources will have deep impact on Pakistan environment.We should always remember development also bring lots of natural catastrophe which Pakistan should be beware of. Pakistan should not go for China type development. The result of China type development is in front of the world.
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Sep 10, 2015 01:44pm
This is not a project to play with it, as is our usual practice. The amount and type of money involved, can easily mortgage the whole nation, if we fail to deliver and reap benefits in time. Moreover, we must ensure continuity of the whole plan even if the government changes hands.
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Sep 10, 2015 01:47pm
It's already going fast , it's not a game
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Sep 10, 2015 01:57pm
@Amanat ALi .
Dear amanat for someone taken land for make and develop the business and port etc .
That country will be return or leave after agreement to possible .
Please think and reply me.
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Sep 10, 2015 02:05pm
@dwaraka nath Thanks for the sane comments, I think what people need to understand is that a stronger Pakistan is good for India and a stronger India is good for Pakistan. What is not good is to have struggling neighbours because then sometimes the problems spill over.
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Sep 10, 2015 02:19pm
Make it on fast track because we can not the bear the cost of delay!
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Sep 10, 2015 02:20pm
Going very slow; nothing so far to show for it; and US$ 46B is not such a big investment. There are people in this world, alone worth more than this.
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Sep 10, 2015 02:34pm
Phase One U.S. To build infrastructure, two is to manufacture high end goods and phase three is full scale global sale and marketing by both Pakistani and Chinese companies. Pakistan will see the real impact in 2022 to 2025, which is not too far.
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Sep 10, 2015 02:48pm
It's a great event to see Pakistan moving on the tracks of economic growth. It's common sense that if Pakistan gets into positive development & pro people programmes it will desist from war. Those who want to see Pakistan in trouble are short sighted. People of Pakistan & India are same. Our children are same looking. Our future is same. I pray that Pakistan comes out of all troubles n move on the path of economic growth & development.
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Sep 10, 2015 02:57pm
My comments for China Pakistan Economic Corridor and Mega Oil City Project
1. Ships carrying Middle Eastern Gas / crude oil/Containers to Shanghai port from the Gulf can travel for 3 weeks through the South China Sea. If this is directed via CPEC to Kashghar and then by rail/road to Eastern China we are talking billions in savings for the Chinese Government due to the reduced shipment and maritime travel costs.
2. Savings is leasing large oil tanker, Container carrying costs, petroleum tankers costs , at least 3 weeks of shipping route, merchant navy staff costs , excessive shipping fuel costs, pollution to the global environment, Green House Gas savings and return journey, spillage risk and other savings.
3. Saving of 1 maritime trip from Middle East to Shanghai Port to generate Green House Abatement certificates which shall be traded in the global market. This is necessary to necessitate the use of the corridor.
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Sep 10, 2015 03:20pm
Please move ahead with speed, accuracy and transparency on this mega project. Please do not make it a political point-scoring stunt. I request all to kindly make it the best project of your life because it is for your children and their children, demanding honesty and sincerity. This is the project that has the potential to transform the landscape of our country, if executed well. Make project dashboard with weekly project review meetings. If we can form a good team, this will be a smooth completion.
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Sep 10, 2015 03:36pm
Good decision on the part of Govt. of Pakistan to assign the Chinese authorities to development and establish economic zone, which will user into a new era of progress and prosperity in the Region benefiting the both countries. However, I would suggest that serious efforts may be made to address the concerns of Baloch Population, who have taken arms against the State of Pakistan. To my understanding, the Baloch are not against investments and development, but they fear that a huge economic activity will allow influx of people from other provinces, more importantly from Punjab, and they will be relegated to a minority in their own province. The ultimate result of this mass movement will deprive them not only of benefits of such economic activities, but will also of ownership of Balochistan, for being the abo-origin. This issue can be addressed in a variety of ways, one of which, can be NOT granting right to VOTE to the people coming from other provinces.
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Sep 10, 2015 03:47pm
Cant wait to see it up running :)
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Sep 10, 2015 05:11pm
@Sandhu How Childish. China will sign everything with Zardari but will not pursue with it. They also signed many projects in Zardari era but did not implement it due to credibility issues. Nawaz reputation, relations & performance played key role in imparting confidence. Terrorism elimination also played in key role and many other factors. Ok I don't bring politics into it so why for every tomato, potato issue Imran is on streets doing politics? So, Definitely Imran is anxious and will agitate more.
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Sep 10, 2015 05:11pm
@dwaraka nath , Forgive me but all i read in this same paper is Indian ministers's bragging about breaking Pakistan into four pieces or so. All i read about Pakistani politicians or army is that they will "defend" the country at any cost. Feel the difference my friend.
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Sep 10, 2015 05:19pm
@Salih I can also quote several problems alone in KPK. This is the issue with PTI whenever they see any big development by Nawaz they start pointing out at other things to satisfy themselves. With every passing moment Imran and his followers are becoming anxious, main reason performance delivery issues in KPK and splendid work by PML N. PTI builds 1 KM road in Peshawar and post it on their face book and say 'Badal Raha hay Pakistan', on the other hand PML N, a wow factor now and headache factor for PTI now. 'Insaaf? Look at Wajih, Health? we all know condition of health in KPK, Education? a laughing slogan, Family Politics? nothing much left to say. PML N is going forward and attracting educated people and PTI is going backward attracting corrupts of PPP, we are seeing Tabdeeli. Anxious times Imran Khan.
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Sep 10, 2015 05:49pm
@dwaraka nath
Thanks for the part of you positive comment. However, it is Indian army chief and minister who are instigating negative comments such as breaking Pakistan into four pieces.
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Sep 10, 2015 07:20pm
I hope we keep in mind the environmental cost and make sure the Chinese do not dump their polluting processes in the zone.
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Sep 10, 2015 07:54pm
@dwaraka nath ...What about insane comments from Indian politicians ... like breaking Pakistan into four pieces, acceptance of Modi of interference in East Pakistan.
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Sep 10, 2015 08:22pm
@Darashikoh , Yes it is being oversold because the near-future potential in CPEC is no where to see. I can't actually figure out, what would China be transporting Down hill to Gwader. They have no industry and a Little population in western China. The closest Chinese industry hub lies about 3000 km from Kashi. And if China really plans to shift some of their export industry to Xinjiang, even then it may take them 15 years to do that. In reality, it won't even be possible as they have no skilled labour in that region.
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Sep 10, 2015 09:03pm
people on both sides of the border are very much fond of bollywood films. So this dialogue baazi will continue on both the sides.
Subrahmanian swamy does not hold any critical post in the government or the bjp party.
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Sep 12, 2015 07:24am
It all sounds fine and dandy, good economic growth and everybody lived happily ever after. However, one may ask, how much scrap, garbage and refuse would be created as a result of massive activity, who will be responsible for cleanups on a regular bases. Its heard that in some industrial towns of our good neighbour, smog is so thick that peaople can hardly breath, and it has resulted in excessive lung and skin disease for people in the area. Point is: be careful, economic growth should be controlled and environmental affects should be monitored.
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