Gwadar is a developing port city in Balochistan, Pakistan. Gwadar is strategically located between three increasingly important regions: the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-laden region of Central Asia. Gwadar is the location of the Gwadar Port, a warm-water, deep sea port. China has acknowledged that Gwadar’s strategic value is no less than that of the Karakoram Highway, which helped cement the China-Pakistan relationship. Beijing is also interested in turning it into an energy-transport hub by building an oil pipeline from Gwadar into China's Xinjiang region. The planned pipeline will carry crude oil sourced from Arab and African states. Gwadar is located on the Gulf of Oman close to the entrance of the Persian Gulf, about 460 kilometres west of Karachi. In 1993, Pakistan started feasibility studies for the development of a major deepwater seaport at Gwadar. The port project commenced on 22 March 2002 with the first phase completed in December 2005. The Civil Aviation Authority of Pakistan has earmarked 3000 acres (12 km²) of land for Gwadar International Airport which will be built 26 km away to the northeast of the existing airport towards Pasni and is likely to cost between $200–250 million. The new airport will be given international status and operate under the open sky policy. In the meantime there are plans to improve facilities at the existing airport. The Gwadar deep-sea port emerges as a place of great strategic value, enhancing Pakistan's importance in the whole region, extending from the Persian Gulf through the Indian Ocean to Southeast Asia and the Far East. The government of pakistan declared Gwadar port a "Special Economic Zone" in the budget, 2003-2004. All banks will open their branches, five star hotels will be built, offshore banking will be started, factories, warehouses and storage will be set up, the tourism industry will be promoted in the area, an export processing zone will be set up, making Pakistan a very attractive place for direct foreign investment, and Gwadar port a regional hub of trade and investment activities.
Oman has offered $100 million aid for the development of social and infrastructure facilities in Balochistan. Out of $100million, Oman has provided $7million for extending of runway at Gwadar Airport, construction of jetties, upgradation of Gwadar Hospital, provision of 100 engines to fishermen and construction of power house. Oman is also financing construction of Gwadar-Hoshab Road, water supply scheme in Gwadar area and construction of irrigation dams.
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