Gwadar's Fading Promise: China's Disappointment in CPEC Investment

Gwadar and CPEC: China's Failed Investment in Pakistan

Acquiring Gwadar from Oman

Gwadar, originally under Omani control, was acquired by Pakistan in 1958 for $5 million.

Pakistan's Development of Gwadar

• Pakistan partnered with Singapore, but no significant development occurred.
• China became involved in 2013 with the China-Pakistan Economic Corridor (CPEC).
• CPEC included constructing a deep-sea port, highway, and various infrastructure projects.

China's Motivations

• Strategic location for access to oil and natural gas reserves in the Middle East.
• Bypassing India and securing a shorter route for trade and military operations.

Pakistan's Debt and Challenges

• Pakistan incurred significant debt to China for CPEC projects, estimated at $65 billion.
• The International Monetary Fund (IMF) restricted CPEC funding for other purposes.
• The project faced setbacks due to terrorism and attacks by the Tehreek-e-Taliban Pakistan (TTP) and Balochistan Liberation Army (BLA).

China's Retrenchment

• China suspended work on CPEC projects due to mounting debt and security concerns.
• Chinese workers fled the area due to safety issues.
• The project faces significant delays and potential abandonment due to financial constraints in China.

India's Response

• Established a military base in Tajikistan to counter China's oil reserves in Xinjiang province.
• Developed the Chabahar port in Iran as an alternative to Gwadar.

Conclusion

China's investment in Pakistan's Gwadar port and CPEC project was a strategic move to secure energy supplies and extend its influence. However, Pakistan's inability to repay debt, terrorism, and China's own economic challenges have led to the failure of the project, leaving Pakistan with a large foreign debt.