Effect of China–Pakistan Economic Relations to the Economic Growth of Balochistan: A Case Study of Gwadar Port
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Gwadar Port, China–Pakistan Economic Relations, Private Foreign Investment


The Gwadar city is located between the two most important Gulf and Persian regions of the world. Both areas are so rich in resources, simply it is said that, those regions are famous for the production of Oil and Gas. The southern border of Balochistan province is situated in the Arabian Sea. After the construction of a sea port in 2008 with the technical and financial assistance of China, the status of this thinly populated area of the city of Balochistan province has been converted into the economic corridor for suitable trading between the countries of the world. Now a days trading is possible through the sea port, where a country can earn a billion dollars, as port directly connects one area to another area of the world. This paper introduces the economic effects of trading, such as growth. It is expected that the project would generate thousands of jobs for the local people, because of the construction of new industries, agricultural development and communication facilities, which would also be of benefit to the nation as a whole change the area location.

The data highlights that the trade between China and Pakistan has increased to 75.8 million USA Dollars due to the bilateral trade agreement between them after the construction of the port. While the output of industries has doubled if compared to the period between 2005 and 2009 and before it. During this period the output of industries has increased from one thousand million to two thousand million tons. The socioeconomic figures have changed, with a great change in the gross profits of companies. It is mentioned that in the period of 2008 the gross profits were 3.3 million rupees, while in 2010 the profit was 3.9 million rupees. Such changes occurred due to the building of port. Pakistan needs a strong cohesion to this new way for economic reforms. Some areas of Pakistan, there is still a need for mutual development to produce greater economic opportunity. The economic corridor of collaboration should be extended with a view to continuously increase the scope for economic growth and for placing a solid basis for closer ties between two countries.

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