Gwadar Port has been an important emblem of the growing China-Pakistan relations. (Photo : Reuters)
According to a report from U.S.-based Chinese political news publication Duowei News, China has acquired a lease of over 2,000 acres at the Pakistan's Gwadar Port for 43 years to construct the first Free Economic Zone (FEZ) in the area.
Top economic officials in Islamabad said that "another 500 acres of land will be leased out to China very soon to complete their requirement for the construction of the first FEZ at Gwadar, so the total land of 2,500 acres will be provided to their companies."
Gwadar Port is regarded as a major destination in the China-Pakistan Economic Corridor, an initiative that aims to link the port with the Xinjiang Uyghur Autonomous Region through highways, railways and pipelines.
Located on the shores of the Arabian Sea in the Balochistan Province in Pakistan, the port belongs to the state-owned Gwadar Port Authority. For two years now, it is operated by China's state-owned China Overseas Port Holding Company.
Official documents state that the construction of infrastructure related to the FEZ costs around $35 million.
For experts, the control of Gwadar Port is a vital step that allows China to escape from the Strait of Malacca bottleneck when transporting oil from Middle East to Xinjiang.
Moreover, the move will be beneficial to the People's Liberation Army Navy when it comes to maintaining a long-term presence in the Indian Ocean.
It also allows China to overlook maritime routes for oil transport from Middle East and to protect its investments in Africa.
Gwadar can also serve as an intelligence hub for the country, as it provides monitoring of U.S. Navy activities in the Persian Gulf, as well as India's activities in the Arabian Sea.
The Duowei report also mentioned that India was the toughest opponent of China to the deal.
