Ayesha Saba

The CPEC is expected to have a significant impact on the industrialization and urbanization of Pakistan’s coastal and marine areas, and various SEZs have been established there to enhance the country’s economic growth, Mustafa Hyder Syed, Executive Director Pakistan-China Institute, told WealthPK. “Pakistan's economy requires a major boost to get out of its current quagmire. To prevent this steep decline in the economy, harnessing the untapped maritime resources through modern port infrastructure under the auspices of the CPEC is the only viable option,” he said.

“Pakistan is blessed with extremely attractive ports like Gwadar and Karachi, giving it a wider ground to enhance its maritime economy. Under the CPEC, significant investments have been made in the Karachi Coastal Comprehensive Development Zone (KCCDZ) and Gwadar Port – the two key locations along our coastal areas,” he said.

 “As the latest addition to the CPEC project portfolio, the KCCDZ will provide Karachi with ultramodern urban infrastructure, placing it among the world's top port cities. The project also includes setting up a new industrial city, external connecting roads, breakwaters and a coastal bridge, a cruise terminal, seawater desalination plants, and environmental improvement work,” he added. “Apart from developing its SEZs, Pakistan requires a quick, coherent, and creative approach to secure economic benefits from its maritime activities.

Moreover, a holistic and integrated planning approach must be introduced as a strategic framework in the CPEC to achieve multiple objectives, including sustainable development of particular coastal and marine areas. Consequently, the MSP (Maritime Spatial Planning) can be adopted as an integrated planning approach to enhance the development of CPEC coastal and marine areas,” he suggested.

 Ports play a significant role in the economic development and prosperity of a country. The majority of taxes that the federal government collects come from international trade. According to the estimates, nearly half of the revenue collected by the Federal Board of Revenue (FBR) comes from ports, which is estimated at around $235 million (0.08% of GDP). Gwadar Port is a key component of the CPEC and is positioned as a deep-sea port with significant strategic value. The port is being expanded and upgraded to accommodate larger cargo ships, which will enable it to handle increased trade and become a major maritime hub in the region.

Credit: INP-WealthPk