Sunday, April 03, 2016

About investing in Gwadar - What I wrote in 2005



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I have no uncertainty regarding bright future of Gwadar. Insha Allah, it will become better than Dubai as it has nature gifted specialties of deep sea due to which all the world is bound to concentrate on it. No need to go into in detail technicalities. BUT I want to share some points with you which I directly understood from administration of Gwadar.

Few months back when real estate business in Gwadar was on its peak I wanted to make a small investment in Gwadar but my father-in-law (say Mr. Khan who remained DC (Deputy Commissioner) in Dera Bugti, Gwadar and Turbat districts during last 10 years) strictly forbade me for doing so. He is of the view that Govt. of Pakistan wants to develop Gwadar but there are some very real issues which are not being addressed properly. And due to these problems Gwadar will become a problem for all the investors in short term as well as in long term. Also Gwadar will have high level ups and downs.

1. The main problem of Gwadar is water -- When it is in less quantity and also when it is excess quantity. This is permanent problem.

2. The second problem is a Baloch community (My apology from Baloch brothers and sisters. As I myself belong to Baloch family so my discussion should not be taken as a biased one). Baloch feel that investors are like East India Company which ultimately controlled the entire Indo-Pak continent. They are sure that these Punjabis and Karachites will ultimately make them slaves practically and politically. So any development in Gwadar is a death threat for Baloch tradition and system. They will keep on resisting in their own way.

3. Gwadar City Government or GDA has issued Govt. land to different Developers. Those Developers have proper NOC from GDA. Ultimately Govt. will take back all of its land and it will be an irreparable loss for the investors.

4. Govt. wants to keep Gwadar under Federal system but Baloch Sardar will try their best to keep it under the Province. In both cases Law and Order situation will deteriorate (although on short term basis but it will create serious problems).

5. Gwadar in not a worth living place and will not be for at least 15 years. So buying and managing a building / apartment will be only a liability for investors.

6. China / USA interests is another factor but it is totally different aspect so I leave it.

This is what I have understood. I had opportunity to visit almost all the Balochistan and had sitting with different Baloch Sardars, Tumundar and high administration of Balochistan. It was always a heart breaking feeling that Punjabi and Pakistan Army are cursed for each and every problem in Balochistan.
VERY sorry to portray the negative picture but my wish and pray is that LIVE LONG Balochistan and Pakistan. My feeling is that I will surely see a great Gwadar by myself. I will love to see some positive point of views which can negate above points.

Whether Bahria (in near future) will plan some project in Gwadar? What do you think?


Assad replied on Thursday, June 23, 2005 04:57 AM

AOA - Sardar sb in my humble opinion these issues are no doubt massive yet they can be resolved.

"1. The main problem of Gwadar is water. When it is in less quantity and also when it is excess quantity. This is permanent problem."
It can be managed.....rather it is good that we saw a flood in these days there,it will help our planners

"2. The second problem is a Baloch community (My apology from Baloch brothers and sisters รข€“ As I myself belong to Baloch family so my discussion should not be taken as a biased one). Baloch feel that investors are like East India Company which ultimately controlled the entire Indo-Pak continent. They are sure that these Punjabis and Karachites will ultimately make them slaves practically and politically. So any development in Gwadar is a death threat for Baloch tradition and system. They will keep on resisting in their own way."

this is the problem of sardars who never want even a road or school in their kingdom and it can be addressed easily.
You must remember Akbar Bugti as a Governor,what he did for Balochis and Balochistan.



"3. Gwadar City Government or GDA has issued Govt. land to different Developers. Those Developers have proper NOC from GDA. Ultimately Govt. will take back all of its land and it will be an irreparable loss for the investors."
you may be right but to the best of my knowledge land for GDA5 and New World City belonged to Mir Abdul Ghafoor S/O Mir Behram.Likewise land for Golden Palms and Creek City was bought from some local man....

"4. Govt. wants to keep Gwadar under Federal system but Baloch Sardar will try their best to keep it under the Province. In both cases Law and Order situation will deteriorate (although on short term basis but it will create serious problems)."
As you must have noticed till now that Balochistan Government has not allocated any funds for Gwadar Port while at the same time they published an ad in the Jang for Gwadar Industrial State which ,according to that ad,will create 200,000.00 jobs for BALOCHIS of course.This is not about the Port.Federal Government has however allocated and even released handsome funds for the project.

"5. Gwadar in not a worth living place and will not be for at least 15 years. So buying and managing a building / apartment will be only a liability for investors."

As soon as the business activities start there you will witness daramatic and very rapid changes there because people will live there for the buisness.It depends on GDA how they people attract investors for their projects like ducation City,Resorts.Moreover Hospital by British Medical Association in Golden Palms is a very good project that will bring people all arround Gulf and Asia for treatment.

"6. China / USA interests is another factor but it is totally different aspect so I leave it."

This is the most important aspect....
If Gwadar was only a national Project,it would have been delayed till .....nobody knows.
Gwadar Port is very important for China ,it has diversified benefits for China.I mention here only one.China is using currently Shanghai and it takes them many days and yes fuel too to reach in Gulf while in case of Gwadar they travel only KM land and they reach at the mouth of Gulf.


SO DON'T FEEL TOO MUCH DEPRESSED OUR GOVERNMENT IS PUTTING ITS BEST ..........
Take Care

Ahmed replied on Thursday, June 23, 2005 05:29 AM

Good article. I will like to express some views of mine on Gawadar as well this general sense of anti-punjabi prevailing in all 3 provinces of Pakistan. Even Mr. Jinnah knew of this problem of provincialism; no wonder he gave so many speeches warning people against it and promoting harmony and unity and the concept of "Pakistan". It's unfortunate that ever since mr. Jinnah, we haven't had a single politician who hasn't tried to manipulate this issue to his/her own advantage.

Punjab was, is and will always be the most prosperous province of Pakistan. It has the most fertile land, the most suitable terrain, raadily available water for drinking and irrigation. These are all natural factors. It's the law of nature that a province with these many advantages over other privinces is bound to be dominating. Instead of trying to accept this fact and working a sense of unity around it, we have just tried to hold people of punjab responsible for so many problems facing these small provinces.

It is very disappointing to hear Balochs, sindhis(exluding karachi) and to some extent Pathans in nwfp blaming punjab for each and every issue. All these areas are being manipulated by tribal lords, who themselves live such a lavish lifestyle while their subordinates are living a very very ordinary life. In Punjab, there is at least a middle class, while in most areas of other provinces, there is no middle class. It's the super rich and influential lords and then then poor.

That day i was talking to a wapda officer about the extremely high tarriffs prevelant in Pakistan. He raised an interesting point that only if people in Interior sindh, tribal areas of Balochistan and NWFP and also regions in southern Punjab were to pay their bills and stop stealing electricity, the countrywide tarriffs would come down. WAPDA is following the principle of squeezing everything out of people who are already paying their bills to compensate for such a big majority who are not.

Go to NWFP and their is an complete absence of tax culture. Paying tax is considered an anomaly and a very uncommon thing.

These lords in Baluchistan who are opposing Gawadar are just afraid of losing their own influence over their subjects.

I agree with the points in this article that Gawadar is not at all a good place for investors. My biggest concern is the lack of infrastructure there. Ideally, you should build roads, railway tracks, schools and colleges, housing societies, entertainment areas, water and sewerage facilities FIRST and then develop the sea port. Even if the sea port is all developed and running, do you really expect people to move to gawadar just for the sea port? who will go there when they can't have proper housing facilities, good schools for their kids, places where their kids can go for fun and entertainment, a sense of security and well being.

Where's the road and rail link to Central asia? Shouldn't that be already in place by the time the port is up and running?