CHINESE TRADE THROUGH GWADAR PORT: BENEFITS TO PAKISTAN

Abstract

This study examines the economic potentials of Gwadar port and how the materialization of this project would play pivotal role in triggering the economy of Pakistan by channeling trade of various countries especially China, and emphasize that through Gwadar port Pakistan can offer itself as a gate way and hub of trade for the region as it is located at the edge of Persian Gulf, Middle East and is very close to the main sea routes. Theoretical tools are applied in the thesis to scrutinize the prospects of Gwadar as a hub port, arguing its geopolitical environment, its technical aspects and how it would channel Chinese trade yielding benefits to the economy of Pakistan. China is the main supporter of this mega project, increasing energy demand in china, its oil policies, and strategies for the development of its western part and its growing economy is discussed in order to find out the importance of Gwadar port for china and the expected Chinese trade flow through this port. The port is compared for transshipment, transit trade, infrastructure, facilities provided etc with the other ports of the region. Each of the port is discussed individually first and then the comparison of these ports is presented. The interests in the region surrounding Gwadar port by various regional players along with the super powers are discussed to find out the geo-strategic imperatives surrounding and affecting Gwadar port. The focus is on the identification of these interests in terms of security or economic compulsions. This interrelation is then used to suggest policy guidelines for Islamabad. To test the hypothesis both primary and secondary data is used. Each chapter is comprised of two parts. The first part is based on secondary data while the second part is based on the main findings from primary data. Primary data is collected from civil servants and businesspeople to reach to the depth of the problem and suggest the solutions for it .A self administered questionnaire is used to collect primary data. The cross tab, chi square and tabulation techniques under the SPSS programme are used for the analysis of primary data. The study finds that Gwadar Port can generate necessary resources for developing required infrastructure which is pre requisite for fully functional and successful port and which would in turn be a catalyst for the economic revival of Pakistan provided a stable, congenial and secured environment is in place, and that is only possible through regional co- operation and amicable settlements of all domestic and international political and diplomatic issues