CPEC Struggles to Deliver Promised Growth in Gwadar

The China-Pakistan Economic Corridor (CPEC), often lauded as a transformative initiative, has faced significant criticism for its performance in Gwadar, which was intended to be the flagship project of the megaproject. Instead of bringing the promised development and employment opportunities, many locals report that CPEC projects have disrupted existing livelihoods and exacerbated challenges in the region.

CPEC’s ambitions for Gwadar included the creation of 2 million jobs, but these goals remain far from being achieved. Eve Register, a research fellow at the Asia-Pacific Foundation in Canada, described the situation as emblematic of the broader challenges facing China’s Belt and Road Initiative (BRI). “Gwadar’s CPEC projects have come to embody the shortcomings of the BRI and have been described by analysts as ‘dying a slow death,’” she noted. Register is also a member of NATO DEEP’s Global Threats Advisory Group.

Local businesses and political leaders have expressed deep frustration. Maulana Hidayat-ur-Rehman, an activist and politician, highlighted how the arrival of CPEC projects and associated infrastructure has compounded local challenges. “Instead of resolving our woes, the CPEC projects and the arrival of Chinese in Gwadar have further doubled our issues,” he said. “There is no CPEC in Gwadar, except security check posts in the name of CPEC.”

The Gwadar Chamber of Commerce and Industry also voiced concerns over the lack of investment and economic activity. Shams ul-Haq Kalmati, the chamber’s president, stated that CPEC has not benefited local businesses or traders. “There is hardly any business in Gwadar these days, even though CPEC was launched back in 2013,” he said.

Pakistani social scientist Dr. Muhammad Ali Shaikh added that CPEC’s direct grants, originally meant for Gwadar’s development, have predominantly served Chinese interests. According to him, most major contracts were awarded to Chinese companies, while only low-tier staff positions were filled locally. “When Pakistanis have to foot the bill for these projects, why are they being denied business and employment opportunities?” he questioned.

Gwadar’s residents face additional hurdles as local resources are extracted without corresponding benefits to the community. Rehman pointed out that despite Balochistan’s abundant natural resources, its residents often lack access to basic facilities such as education and healthcare. Protests over unemployment and poor public services have become increasingly common in the city.

The Gwadar Port, once described as the “crown jewel” of CPEC, has yet to fulfill its potential. Pakistani Planning Minister Ahsan Iqbal recently acknowledged its lack of progress, stating that Gwadar remains a “white elephant” without port activities and business opportunities. Local fishermen, a vital part of Gwadar’s economy, have faced restrictions from Chinese contractors, further aggravating economic hardships.

Frédéric Grare, an associate senior policy fellow at the European Council on Foreign Relations, noted that China has failed to deliver promised infrastructure in Gwadar, including a vocational training center, a desalination plant, and a hospital. “The economic activity generated in Gwadar has largely benefited Chinese firms and workers, leaving many locals feeling deeply alienated,” Grare said.

Activists and researchers have similarly raised concerns about the exclusion of local communities. Kriti M. Shah, an associate fellow at the Observer Research Foundation, observed that Chinese projects have fallen short in providing employment opportunities to the local population. Register, from the Asia-Pacific Foundation, highlighted that local communities rarely share in the wealth generated by CPEC, leading to resentment toward both Beijing and Islamabad.

CPEC’s performance in Gwadar reflects broader challenges with large-scale development projects that prioritize external interests over local needs. The disconnect between promises and outcomes has fueled discontent among residents, raising questions about the project’s long-term sustainability and its impact on Gwadar’s socio-economic fabric.

References

• https://thediplomat.com/2024/12/is-gwadar-a-white-elephant-project/
• https://www.chinafile.com/reporting-opinion/features/there-no-cpec-gwadar-except-security-check-posts
• https://www.chinafile.com/reporting-opinion/features/there-no-cpec-gwadar-except-security-check-posts
• https://www.dawn.com/news/1815062
• https://www.dawn.com/news/1883406
• https://www.dawn.com/news/1880502
• https://www.dawn.com/news/1883968
• https://tribune.com.pk/story/2397515/gwadar-microcosm-of-baloch-discontent^[1] https://thediplomat.com/2024/12/is-gwadar-a-white-elephant-project/

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