In addition to its significance to reduce Chinese dependence on the Sea of Malacca and South China Sea routes, the port of Gwadar will provide China an alternative and shorter route for energy imports from the Middle East, thereby reducing shipping costs and transit times.

The port of Gwadar would provide China with an alternate and shorter route for energy imports from the Middle East, thereby reducing shipping costs and transit times, in addition to its importance in reducing Chinese reliance on the Malacca Sea and South China Sea routes.

The Gwadar will help China establish trade routes over the seashore that other Arab countries share. The Chinese government has also declared every possible assistance to turn Pakistan’s economy upside down by investing millions of dollars. The port will also improve the maritime relations and connectivity between the two countries for aiding each other in military operations. Experts from all over the world have seen the port as the most significant Chinese investment in cash-strapped Pakistan.

Gwadar Port has huge potential of transforming not only the economy of Pakistan, but also the region. This paper highlights the future scenario of energy transactions for both China and Pakistan, and looks at how Gwadar Port can revive the economy of Pakistan under the fast growing mutual interdependence between the two countries. The connectivity will greatly impact upon the economy of Pakistan as China will invest huge sum of capital in terms of investment, assistance, and transfer of technology in building many mega-projects over a long period of time. Based upon the literature review, the paper also investigates into the vital role Gwadar Port could play in regional economic integration of South and Central Asia.