Pak- Iran Gas Pipeline Politics

By Faheem Belharvi

Despite bitter opposition from the US and warnings of economic sanctions, Pakistani President Asif Ali Zardari and Iranian President Mahmoud Ahmedinijad on 11 March 2013 officially inaugurated construction work of a delayed $7.5 billion gas pipeline. The ceremony, which the President’s office described as a ‘big event’, was held in the Iranian border city of Chabahar. Both Presidents were accompanied at the ground-breaking by delegations comprising ministers, top officials as well as representatives of several Arab states.

Pak Iran gas pipeline is one of the important historic deals of the world especially in Pak and Iran horizons. The project will bring economic prosperity and opens new avenues of relationship between both the countries. Basically, Pakistan is energy stricken country and its growing economy failed to generate revenue requirements. Hence, it is need and necessity of the time to import cheap energy from neighboring country Iran in order to meet energy requirements and lessen our debt burden. The pipeline project will prove to be as the permanent energy bailout package for our energy deficiency.

The other impacts of this project could be; opening up new avenues of economic prosperity, extends business, commerce and trade activities and enhancing cultural relations with a country that has contributed so much, to our history, languages, literature, art and architecture. Meanwhile, tourism and sports activities will also increase which ultimately brings both countries closer.

Although the pipeline project’s formal completion date is December 2014, a detailed feasibility plan is still being worked out and the source of funding is yet unclear. In July 2011, President Ahmadinejad has offered to fund construction of the 761 kilometers inside Pakistani territory. Iran declared at the time that it had laid the pipeline on its side to within 50 kilometers of Pakistan’s border. But the Iranian offer has to be taken with a good meanwhile, Iran’s economic difficulties are rapidly mounting. China’s largest bank, the Industrial and Commercial Bank of China, has backed out from its earlier commitment.

In June of that year, members of the opposition benches in the Balochistan Assembly exhibited unprecedented unity and passed a resolution seeking royalty for the province in the proposed multi-billion dollar IP gas pipeline project. Further, the assembly also demanded Balochistan`s representation in the IP talks, free gas for adjacent populations, a 100 per cent job share and a major share in any royalty. It is added that, there is no constitutional or legal guarantee that royalty in any form, including security, jobs or gas, will be supplied to the people of Balochistan.
Islamabad cannot deny the fact that Balochistan represents 44 per cent of the country`s landmass and shares strategically significant coasts and border areas with the energy-rich Middle East, through Iran.

Pakistan took a firm stand on the issue. In this regard last week, Foreign Minister Hina Rabbani Khar, addressing a joint press conference with her Swedish counterpart, said that Pakistan was committed to the Iran-Pakistan gas pipeline. She also laid to rest any doubts that a Chinese bank’s decision to back off from funding the project would affect plans to import gas from Iran. She said: “There are multiple sources available and this is a very viable project.”

For Pakistan the IP gas pipeline project is its energy lifeline for the future as it will provide the cheapest and most suitable fuel for power generation. According to an estimate that, the gas to be supplied by Iran would help generate around 4,000MW of electricity, besides providing job opportunities in the backward areas of Baluchistan and Sindh.

Anyhow, US factor again mounted pressure on Islamabad to forego with the project, otherwise sanctions could be imposed on Pakistan. In this connection, Hillary Clinton said that the Turkmenistan pipeline was a better alternative, predictable and would avoid business with Iran and added that embarking on the construction of a Pak-Iran pipeline is in violation of the Iran Sanctions Act. She said, “We all know what the consequences of that law are.” Else the U.S shall isolate itself away from a goal that is truly important, the fight against global terrorism.
On March 7, another US Department’s spokesperson, Victoria Nuland, spoke on the subject and said: “The proposed deal will violate UN sanctions laws.” She acknowledged that Pakistan has a lot of unmet energy requirements. The US, she added, was aware of these requirements and has been “working in close partnership to find better ways” to meet these needs.But Pakistan totally rejected American stance since Iran-Pakistan pipeline project is vital to her flourishing economic and meeting future energy requirement.

Another factor which need serious attention that fast friend of Pakistan “Saudi Arabia” is not very pleased over the Pak-Iran project. The Saudi attempt to create divisions and distrust with a neighboring country is plainly insidious and deserved a response from Pakistan’s leaders — one no less firm than the one delivered to the Americans. The Saudi plan is just as unworkable as the TAPI pipeline, which the US is pushing as an alternative to the IP pipeline. TAPI would run through Turkmenistan, Afghanistan, Pakistan and India. But with Afghanistan likely to be embroiled indefinitely in civil war after 2014, only a wild idealist can believe that a pipeline traversing its hostile and intractable terrain could provide secure oil supplies.

Let us hope the next elected national government would have to complete this Peace Pipeline Project with vision, will and capability to make up for the last decades and move fast to lift the society and the state to higher levels and scrupulously work for the development of the country development and welfare of the people. Iran-Pakistan gas pipeline can prove to be the starting point of a new era of peace and prosperity for the entire region. US and others opposing western countries should stop playing power politics with the developing and under developing countries in the name of nuclear proliferation . They should not forget US-India nuclear deal before yelling against Pak-Iran Gas Pipeline Project.

WESTERN MEDIA BRUITS

By Faheem Belharvi
Recent international media propagations have once again figured out Pakistan’s tribal areas as a global jihad hub consisting of thousands of foreign fighters from diverse countries. AFP reported that “Pakistan is still a major destination for radicalised Muslims bent on a life of jihad, despite hundreds of US drone strikes, the death of Osama bin Laden and the fracturing of Al-Qaeda.

There could be around 2,000 to 3,500 foreign fighters in the border areas from around 30 different countries”. It is strange that how a professional news agency floated such a report which is violative of it’s own standards of journalistic ethics. A bird’s eye view of this news report denoted that it projected a misleading opinion rather than presenting the factual position on the ground.

The propaganda was then, wittingly or unwittingly, picked up by some Pakistani media outlets and journalists without obtaining narrative of Pakistan security institutions over the issue. TTP also, hurriedly seized the opportunity to identify itself as a “global jihadist organization” by launching a video comprising of its slain western affiliates and gave an impression that TTP was actually organizing white jihadists in Pakistan’s tribal areas.

Such misinformation spread by western media is nothing new, rather just an old wine in a new bottle, as it is aimed at maligning Pakistan for nurturing terrorist training camps against coalition forces in Afghanistan and undermining its role after US-NATO withdrawal in 2014.

Recently, Afghan authorities have categorically recognized Pakistan’s importance for the country’s security after the withdrawal of coalition troops from Afghanistan. An Afghan delegation headed by Afghan Defence Minister Bismillah Khan came to Pakistan in January on a 5-day visit and showed willingness to accept Pakistan’s offer to train Afghan troops.

The defense team’s visit manifested that Afghans are finally convinced about the role of Pakistan in both countries combined endeavours to mitigate insurgency in the region. However, some hostile countries do not want Pakistan to acquire significance and a greater role in the region, therefore projecting Pakistan in clutches of foreign insurgents, to reflect that a terrorism engulfed state would not be able to help Afghanistan stand on its feet after 2014 withdrawal.

Coming to the issue of increased white jihadists in Pakistan; it would be right to say that in recent years Pakistan’s security forces’ crackdown against foreign militants has helped in reducing cross-border militant infiltration from Afghanistan to the Pakistani tribal areas. Security forces’ operations have constrained the space for foreign operatives; besides dismantling their infrastructure and hideouts.

Security officials articulated that in a number of operations against Al-Qaeda and its foreign operatives; thousands of foreign militants have been killed and hundreds of them have been apprehended. In addition, scores of foreign militants were killed in drone attacks in Pakistani tribal areas including Tahir Yuldashev, Usman Adil of Islamic Movement of Uzbekistan, and Mustafa Abu Yazid, Abu Laith Al Libi of Al-Qaeda, which has discouraged these operatives from advancing towards FATA. Operatives from western countries say that they are now afraid to come to Pakistan because of Pakistan military crackdown and drone strikes.

Militants seeking Jihad in Afghanistan now focus towards the sanctuaries and training camps in Afghanistan’s Nuristan and Kunar provinces. These training camps comprise of thousands of local Afghan militants and foreign operatives, who are highly motivated to thrust out their anger towards invading forces in Afghanistan.

Recent surge in attacks on US and NATO troops has made the fact quite evident. These miscreants are also involved in heinous crimes like kidnapping, extortion of money, terrorist activities and drug trafficking within Afghanistan. Sources in Afghanistan’s Ministry of Tribal and Border Affairs confided that these miscreants were launched into Pakistani territory and adjoining areas to create mistrust between Islamabad and Kabul, as friendly relations between the two do not serve the long-term objectives of regional and international players in the region.

Besides, Arab spring and conflict in North Africa also diverted the focus of foreign fighters from Pakistan towards Middle Eastern and African countries. Al-Qaeda’s foreign affiliates who once travelled to Pakistan are now joining Al-Qaeda’s affiliated groups such as Al-Qaeda in Arabian Peninsula (AQAP), Al-Shabab and Al-Qaeda in Islamic Maghreb (AQIM), for which Al-Qaeda provides them practical expertise, weapons and communication skills.

Western intelligence officials also believe that the number of Al-Qaeda operatives and its foreign affiliates in Pakistan tribal areas has fallen to the “low hundreds”, as most of them are either on the run or finding sanctuaries in Middle Eastern and African countries. Moreover, Long War Journal cited that hundreds of foreign jihadists poured into northern Mali in recent months to help armed Islamist groups. Residents of the cities of Timbuktu and Gao, Malian security officials and Islamist commanders all confirmed that there had been a huge influx of foreign fighters over the past few months.

In a scenario where focus of the global militants has been diverted away from Af-Pak region and international community is more concerned towards conflicts in Syria, Libya and Somalia; baseless reporting regarding inflow of foreign operatives into Pakistan merits no serious concern. It is a mere propaganda tactic and a sequel to international media’s sinister designs to discredit Pakistan’s role in war on terror. Pakistani security forces are extending remarkable services to reduce infiltration of foreign militants into the country’s territory. Therefore, Pakistani media and intelligentsia must be taken on board by the concerned authorities to play their role in dispelling such misperceptions.

Quaid’s Vision of One Nation and Sectarianism in Balochistan

Zaheerul Hassan

During three decades of his political life, Mohammad Ali Jinnah had believed in the possibility of Hindu-Muslim unity and was awarded with the title of “Ambassador of Hindu Muslim Unity” by prominent Hindu politicians. However, the dubious character of Indian Congress and Hindu leaders convinced him that a Muslim homeland on the subcontinent was the only way of safeguarding Muslim interests and the Muslim way of life.

He philosophized the “Two Nation Theory” with his intellectual acumen to convince British rulers of subcontinent that Hindu and Muslims are fundamentally two separate nations. Their religious, cultural, social and political values are contradictory and both the civilizations have a long history of animosity.

The above mentioned facts elucidate that Jinnah became exponent of Two Nation Theory just to prove the implacability of a single state for Hindu and Muslim civilizations. He never believed in religious and sectarian divisions.

In his first presidential address to the Pakistan’s Constituent Assembly, he made clear that all the Pakistanis; Hindus, Christians, Sikhs and Muslims will be free to practice their religious beliefs in the new country. He had a vision of a state that will be Islamic in character with full respect to Hindu and Sikh temples, churches and mosques.
However, some thinkers attempt to distort Quaid’s vision of a separate nation for Muslim by misinterpreting it as a source of religious fanaticism amongst Pakistanis.

They also curse Objective Resolution – an articulation of Quaid’s vision – for creating sect and ethnicity based polarization in the Pakistani society and hold it responsible for the current state of sectarianism in the country. Yet, they omit the fact that Jinnah was a strong advocate of religious freedom and harmony. They also overlook Quaid’s notion of national integration which transcends the concept of religious discrimination, limited nationalism and racialism.

No doubt, the delay in constitution making gave India an opportunity to create confusion on the national identity of Pakistan. The nefarious Indian agenda to create divisions in Pakistan was materialized in the form of Indian intervention in East Pakistan, which is well known to the historians. Continuing the same scheme, RAW is now highly active in Sindh and Balochistan in fomenting sectarian and ethnic violence.

Recently, IG Sindh Police Fayyaz Ahmed Leghari made startling revelation that forensic investigations of sectarian killings indicate that same weapons and killing patterns are used in targeting the leaders of various sects. These facts take us to the conclusion that a third group is staging assassinations of rival sectarian parties to provoke large scale violence in Karachi. This scheme is a handiwork of a hostile agency and we should see the attacks on the Hazara Shia community in Balochistan in the light of these findings.

The rich minerals treasures of Balochistan and strategic importance of Gawadar Port are the focus of all the major powers. The various schemes of division and maps of independent Balochistan projected by strategic organisations of these powers make this fact evident. Balochistan share border with Iran and Afghanistan and the attacks on the Hazara Shias are mainly linked with their influence and the presence of hostile agencies.

The overall deteriorating situation of law and order in the province is also contributing factor for the brazen attacks of LeJ on the members of Shia sect. In fact, it is the part of strategy of Al-Qaeda, TTP and LeJ to break the social fabric of Pakistan through sectarian violence and Balochistan is feeling the heat.

The friendly Muslim countries are involved in promoting and strengthening of sectarian organizations in the country in general. Iran is backing Shia organizations and Arab states are financing Sunni sectarian groups to further their own interests. The Western countries are also providing funds to moderate religious groups as part of their strategy to counter radicalization in Pakistan. These foreign interventions are major agents of sectarianism in the country, which are eventually harming the cause of national integration.

The sectarian violence remains limited only to the members of sectarian groups and the general public in Pakistan is living in religious harmony. In fact, people never became involved in religious riots on community level. However, the sectarian violence has heightened recently and it can engulf whole population of the country, becoming the greatest security threat. The government and law enforcing agencies must take concrete steps to dismantle militant groups, enforce bans on hate speech and sectarian propaganda, and reform the madressah system in order to tackle the problem of sectarianism

Pakistan launches first Ever National Climate Change Policy

Ishaal Zehra

Much compliments for the Ministry of Climate Change, in Islamabad, on providing a framework for coping with the threats of climate change through adaptation and mitigation measures. The policy, officially launched on February 26, 2013, focuses on development sectors such as water resources, agriculture and livestock, forestry, human health, disaster preparedness, transport and energy.

“The goal is to ensure that climate change is mainstreamed in the economically and socially vulnerable sectors of the economy and to steer Pakistan towards climate resilient development,” Javaid Ali Khan, director-general of climate change and environment at the ministry said during his presentation at the launch.

Now that the policy has been launched, implementation is the biggest challenge the policy faces. Policy implementation committees will be formed at the federal and provincial levels. The relevant ministries and departments as well as provincial and local governments will come up with their own strategies to get to work.

According to the National Economy and Environment Development Study 2011, climate change adaptation measures from now to 2050 will cost around $6 billion to $14 billion and mitigation efforts during the same period will cost $7 billion to $18 billion.

There were a variety of financing options available for projects under the climate change policy such as the international Green Climate Fund which aims to raise $100 billion for environmental projects worldwide by 2020. A National Climate Change Fund will also be formed. Climate change is a huge challenge that the government cannot handle on its own. It requires collaboration and cooperation between the private and public sectors, Hussain asserted.

Some of the measures in the policy include flood forecasting warning systems, local rainwater harvesting, developing new varieties of resilient crops, health impact assessment of changing weather patterns, promotion of renewable energy sources and efficient mass transport systems.

Water and agricultural sectors are likely to be the most sensitive to climate change. Fresh water availability is expected to be highly vulnerable to the anticipated climate change. Pakistan has in most areas of agriculture a monsoon climate, and there might be abundant rainfall during the wet season and then a very long dry season where crop production depends very heavily on irrigation water. Though Pakistan has the worlds best irrigation system in hand but the neighbor India is a continuous threat to Pakistan’s water resource. May it be through the construction of Wullar Barrage or Kishan Ganga water project.

In the past two decades many a researches have been undertaken which point to the fact that Pakistan's struggle with scarce water resources will escalate with time until and unless remedial measures are taken. These measures include the need for seeking alternate sources of water In addition to ensure that India does not violate the Indus Water Treaty. Knowing India, the latter seems totally out of question hence more focus must be put on local rain water harvesting.

At present, there are few reservoirs to capture rainwater and probably this added to worsen the situation in Sindh and Balochistan where Pakistan had to struggle with floods and displacement of entire communities. There is a dire need to construct reservoirs throughout the country on a war footing to ensure that rainwater can be used to meet the needs of the people. Certain concrete step towards climate threat and water issue was long due. Appreciation must be given to the Ministry who seemed to believe in the phrase better late than never. Climate change clock is ticking too fast and the time to act is here and now.

February 27, 2013

Gwadar Seaport Completion Requires Special Attention

By Sajjad Shaukat Gwadar Seaport

When during the Musharraf regime, Pakistan government initiated the construction of Gwadar deep-seaport in the Balochistan province in March 2002 with Chinese assistance, a siren went off in the capitals of the United States, India and Israel. The US took it as a threat to its global plans, and India felt that it threatened its integrity. Israel also took it as a greater threat from an Islamic country. Some defence analysts had opined that development of Gwadar port would shift the great game of Central Asia to Pakistan, though Afghanistan would remain its gateway.

As regards its strategic importance, due to its proximity to the vital sea lanes, Gwadar is the major important seaport in the world. Located on the southwestern coast of Pakistan, it is close to the Strait of Hormuz from where more than 17 million barrels of oil passes every day. Its ideal location between three key regions, South Asia, the oil-rich Middle East, and oil and gas-resourced Central Asia have further increased its significance.

If once becomes fully operational, Gwadar Seaport could connect the landlocked Central Asian states with rest of the world. Being the commercial hub, the port is likely to increase volume of trade, bringing multiple economic and financial benefits to Pakistan like the Suez Canal which changed the destiny of Egypt when Israel returned it to the former. It will enable high-volume cargo vessels to move in the major oceans. Otherwise, big vessels cannot move from and to Karachi Seaport owing to dearth of depth. Therefore, small cargo ships with low weight are sent to Dubai from where containers are re-loaded on big vessels. This practice causes many problems for businessmen, discouraging Pakistan’s imports and exports.

In case of its completion, Gwadar project will not only uplift the impoverished people of Balochistan by providing thousands of employment opportunities and is likely to develop whole the province by redressing their grievances. The resulting prosperity would trickle down to the Baloch people and damp the separatist sentiment.

Besides, as an alternative deep water port, it is situated 470 km away from Karachi making it less vulnerable to the Indian naval blockade which Pakistan faced in 1971 during the war with India.

As Pakistan has close friendship with China, so in the long term, the Gwadar Seaport could serve as a port of entry for oil and gas to be transported by land to the western region of China. If Beijing wants to emancipate itself from transportation or military problems along Asia’s southern coastline, direct access to the Indian Ocean may be the solution.

In this respect, Balochistan’s Gwader project where China has invested billions of dollars irks the eyes of US-led India and Israel; hence, they have been supporting Balochistan Liberation Army (BLA), Jundollah (God’s soldiers) and other separatist elements which are arranging subversive activities in the province as part of their covert designs. In this regard, Pakistan’s civil and military leadership has repeatedly said that training camps are presence in Afghanistan from where arms and ammunition are being sent to the militants in Balochistan in order to dismember Pakistan. In the past few years, a number of Chinese engineers, working at Gwadar were kidnapped and killed by the foreign-affiliated insurgent groups. The main aim behind is to discourage Beijing for the development of Gwadar port.

Although secret agencies like American CIA, Indian RAW and Israeli Mossad have been arranging acts of sabotage in Balochistan including other parts of the country for their countries’ collective strategic interests, yet it is our misfortune that Pakistan’s political leadership has caused delay in the completion of Gwadar Seaport owing to lack of interest and willingness, instead of vigorously pursuing the project. Unfortunately, short term vested interests of these politicians have prevailed over the long term national interests, creating differences between the state institutions which further complicated the situation rather than a progress for the rapid development of the project.

In this context, Pakistan’s Minister of Port and Shipping, Senator Baber Khan Ghauri has often found involved in blame game so as to shift his responsibilities and failures in relation to the Gwadar project. On August 28, 2012, in a meeting of the Senate Committee on Ports and Shipping, he pretended that government’s failure to transfer 584 acres of land in possession of Pakistan Navy at the mouth of the port was a major obstacle with Port of Singapore Authority (PSA) and resolution of the related issues.

Notably, in 2006 after completion of the Phase-1 construction work, Gwadar Port Authority (GPA) invited offers from experienced port operators for the management of the project, and in February 2007 signed an agreement with Concession Holding Company (CHC), a subsidiary of PSA for operational control of the seaport. PSA was to invest $ 550 million during the next five year for development of the port, but since than, no substantial progress was achieved. In fact, GPA’s lack of thinking in strategic terms in maritime sector and its inability to persuade PSA in marketing and operationalisation of the current terminal area has failed to capitalise on the immense potential which resides on this project.

However, actual facts which have delayed the completion of strategically important deep-seaport of Gwadar have not made public. In this regard, the agreement between GPA and PSA was flawed, and the Minister of Port and Shipping, Senator Baber Khan Ghauri is largely to be blamed. It was because of the minister that contract rules were violated and laws were bent wherever these were needed to ensure the interests of the concession holders rather than to safeguard the business interests of both the parties. In this context, a former chairman of Gwader Port Authority disclosed in 2009, “People fear that PSA Gwader’s name is only being used as a cover and the party is really interested in running the port will come to the fore after the former disinvests.”

While Senator Baber Khan Ghauri who is from Karachi-based MQM political party, is not interested in the operationalisation of the Gwadar port because it will reduce national dependence on Karachi Port Complex. As a result, his party will lose political leverage and in turn control of Karachi city. So the minister who has deliberately neglected development of Gwadar project, himself is involved in land grabbing in Gwader city rather than acquiring land for completion of this key port. It is owing to these reasons that even after the lapse of several years, Gwadar city still lacks road and rail track connectivity due to which, its usage is severely limited.

Now, Pakistan has decided to give the operations at Gwadar port to China as soon as the terms of agreement with the Singapore Port Authority expire. In this regard, the Planning Commission’s task force on maritime industry has proposed that an operational agreement with PSA be cancelled, which had undertaken to spend $525 million in five years, but nothing was spent during the last three years. No commercial vessel had arrived at Gwadar port during the same period.

Nevertheless people regret that like PIA, railways, power and energy sector, steel mills, poor performance of the government on the Gwadar Seaport is yet another tale of woes. But reality remains that the project has been victim of deliberate carelessness by the Senator Baber Khan Ghauri who can not be exonerated from his responsibilities as Minister of Transport and Shipping.

While the ball is in government’s court, so it is the right hour that an amicable solution of the issue with effective plan so as to take corrective measures, and appointment of sincere leadership could play a positive role in completion of the Gwader project which is in everyone’s best interest. Nonetheless, this port requires special attention for its completion. Otherwise, immense benefits like advancement of the strategic value of Pakistan including socio-economic development of Balochistan will remain a dream.

Sajjad Shaukat writes on international affairs and is author of the book: US vs Islamic Militants, Invisible Balance of Power

Gwadar Port: An opportunity in waiting!

Posted by Faheem Belharvi
Our visionary founding leaders saw through an opportunity of great benefits in this small Omani town of Gwadar as early as 1954. For the purpose, newly born state of Pakistan purchased this small fishing town, which was geographically contiguous anyway, for a partly $3 million in 1958.

This small costal town located on the mouth of the strategic Persian Gulf was seen as a major trading and energy hub on the warm waters of the Arabian Sea. For Pakistan, it was to be an alternate to Karachi Port which was located some 460 Km to its south east, and for landlocked Afghanistan and Central Asian Republics (CARs), the nearest to warm waters of the Arabian Sea for trade and energy supplies. In fact, the centuries old Great Game of the Russian Empire envisaged its landings to the warm waters of Arabian Sea around the same areas. However, the dream of our founding leaders of making Gwadar, a truly regional hub was kept pending until the turn of the new millennium; “for strategic reasons.”

In any case, the construction of Phase-I of Gwadar Deep Sea Port commenced on 22 March 2002, at a cost of some $248 million by the Chinese firm. President Musharraf takes the credit of finally launching the project of Gwadar Deep Sea Port and predicted it to be a beginning of an era of economic progress for Pakistan as well as the coastal belt of Balochistan.

He then inaugurated the Gwadar Port on 20 March, 2007. The completion of the Phase-I of Gwadar Port meant that the Bulk carries of 30,000 deadweight tonnage (DWT) and container vessels of 25,000 DWT could be berthed and do business on the port. Musharraf government saw the completion of Phase-I of Gwadar port as an opportunity to boast its valued strategic location to engage any renowned international port operators.

Finally, the contract of Gwadar Port operations was awarded to the Port of Singapore Authority (PSA) on 1 February, 2007. According to the terms of contract, the PSA was to invest some $550 million over the next 5-10 years, however, the dream to see Gwadar Port as the regional energy and trade hub remains unfulfilled till to-date.
The construction of Phase-II started in 2007 at a cost of $932 million with an aim of establishing a Bulk Cargo Terminal with the capacity of 100,000 DWT, a Grain Terminal and two oil terminals.

The work continued at snails pace while the government contemplates withdrawing the port from PSA’s control due to its failure to operationlize the port with promised investment. Reportedly, PSA has agreed to hand over the ports administration after the Government of Pakistan terminated its contract on technical grounds as well as for violation of contractual obligations.

Pakistan now plans to hand over the Gwadar Port operations to Chinese firms so that its development and functioning could be expedited. There is no denying that till to-date, Gwadar Port has not been able to make any significant contribution in Balochistan or Pakistan’s economy, in spite of its invaluable strategic location and immense potential of being a gateway for trade and energy corridor for China, Afghanistan and Central Asian Republics (CARs).

I believe, only we are to blame ourselves for the painstaking lethargy and complacency that nearly all the stakeholders have shown towards the development of Gwadar Port. Allah Almighty has blessed Pakistan with this golden port named Gwadar and we, unfortunately have miserably failed to exploit it true potential. The delayed development of the Gwadar Port is denying the people of the area of employment opportunities and related economic benefits.

I would sincerely urge upon all stakeholders including Ministry of Ports and Shipping, Gwadar Port Authority, the provincial Government of Balochistan to shun their differences and work together to remove the impediments related to land issues, and control of administration and authority.

This would certainly help realize the dream of our founding leader by making Gwadar Port, a truly trade and energy hub of the region, bringing peace, progress and prosperity for the people of Pakistan in general and people of Makran and Balochistan in particular.(Zia Siddiqui)

Gwadar Port – A Sordid Tale of Neglect

Posted by Faheem Belharvi

Pakistan’s Port of Gwadar, 267 Miles West of Karachi and 43.5 Miles East of Pakistan-Iran border, bears a great strategic value vis-à-vis the Straits of Hormuz, the life line of energy to the outside world. On average, around 36000 ships transit through Pakistan’s area of sea interest annually.

The average trade of the country hovers around 38 million tons out of 95% is through sea. Pakistan’s major port, Karachi accounts for 68% of the sea borne trade whereas the other Port located towards the south-east, Port Qasim accounts for 32%. According to one estimate Pakistan’s sea borne trade would reach 91 million tons by 2015.

The Port of Gwadar became operational in 2008 when merchant vessel ‘Pos Glory’ made a maiden call at the port on March 15. Its location can facilitate trans-shipment facilities at the international levels being very close to international sea lanes of communications. It also provides a direct access to Central Asian Republics and Afghanistan to transport their energy resources and other trade to Gulf region and else where down the Indian and Pacific Oceans.

Unfortunate as it has been, Gwadar has not been able to live up to its true potentials. Despite being operational for the last five years, the Port still gives a deserted look. The sordid tale of the Port started with international tenders in 2006 seeking competitors to run, manage and develop the Port. Concession Holding Company, a subsidiary of Port of Singapore Authority’s bid for operational control of the Port was accepted. As per the contractual clauses, Singapore port authorities were to invest US $550 over next five years for the development of the Port however, development is yet to be seen around.

The Singapore Port Authority has made the development incumbent upon provision of land free of cost to construct a ware house first. The land would cost the Baluchistan Government a hefty sum of Rs. 15 bn. The controversial handing over of Port operations to Singapore authorities has not delivered with the result that the Port still operates to its half capacity. The enigmatic failure of our successive governments, particularly the Gwadar Port Authority to follow through the contracted developmental phases and concurrent failure of the company to market and operationalize the Port to its full capacity has made the Port insignificant for commercial purposes in the eyes of the international shipping operators. Not only that, the expensive infrastructure is getting rusted for failing the maintenance schedules.

The Port has not benefitted the local educated youth either with the result that they look for jobs elsewhere in other provinces. The Baluch have had great expectations from Gwadar Port and always considered the Port as an harbinger in raising their living standards. But till the time the Port remains under utilized, its full economic potential can never be achieved denying the Baluch dreams come true.

Gwadar Port is still beset with many impediments. Amongst a few are persistent security concerns, failure of respective governments and particularly the Ministry of Ports and shipping to lay communication infrastructure like railway lines and networking of major roads. Unites States’ resolve to deny China a space in the Gwadar area and the North Arabian Sea also results in failing to muster foreign funding for the development of the Port. To add to the felony are the personal short sighted interests of our political leadership over the long term national interests that keep the Port development an hostage to making the Port a success for the national economy and defense of Pakistan.

The absence of sincerity and willingness in our political leadership to pursue the Gwadar Port development has cost the nation in billions of dollars with no early end of the development in sight. When questioned, the government officials responsible for the Ports and Shipping take the easy route of blaming other agencies for their failures. In such a diversionary move, the Ports and Shipping Minister while responding to Senate’s Standing Committee in the Senate on 28 august, 2012 shifted the onus of failures to Pakistan Navy. He asserted that it is the failure of the central government that it failed to acquire and transfer 584 acres of land in possession of Pakistan Navy to meet the contractual obligations with the Singapore Port Authorities which he said impedes the completion and further development of the Port.

The facts speak otherwise. The contract signed between the Ministry of Ports and Shipping with the subsidiary of Singapore Ports (CHC) was devoid of foresight by the Ministry officials. The copy of the contract acquired through the Ministry is a tell all story of major flaws and is more in favor of the Singapore company rather than the government of Pakistan.

Many in Pakistan wonder that non-serious attitude of the Ministry’s leadership towards development of the Gwadar Port inherently prevails over the false assumption that Gwadar’s development would result in down gradation of Karachi Port activities as hub of national economic activity. The whisperers also say that a certain coterie of the Ministry of Ports and Shipping is involved in acquiring big chunks of land around the Port whereas the focus should have been acquisition of same land for development of Gwadar Port.

Many political faces at the centre have changed since the Gwadar Port Project lifted off the ground, some for defying the judiciary and some for being persona non grata. The only thing consistent that happened to the Ports and shipping ministry was its leadership. One will not be wrong in analyzing that onus of the failure of Gwadar Port development lies with the relevant ministry and its hierarchy.

Ministry’s failure has reciprocally added to a long list of Federation’s woos and failures that continue to strive to resurrect other white elephants like PIA, Railways, Textiles and the energy infrastructure. Unless these issues are resolved through a well thought out strategy and foresight, the benefits like enhancement of strategic capabilities of the country and tangible socio-economic benefits for the people of Pakistan and specially those belonging to Baluchistan will remain a distant dream.
The successive governments have failed to realize and exploit the full potential of the Port as well.(Bassam Javed)