Chinese company leases Gwadar port for development.

Chinese company leases Gwadar port for development

China has signed a deal with Pakistan to acquire the usage rights to more than 2,000 acres of land for a Chinese company to develop a massive special economic zone in the deep sea port of Gwadar.

A delegation led by Wang Xiaotao, Deputy Secretary General of China’s National Development and Reform Commission, signed a lease agreement with the Pakistani government.

The 43-year lease will see the government of Baluchistan province in southwestern Pakistan provide a 923-hectare swathe of tax-exempt land as part of the China-Pakistan Economic Corridor. The corridor is an ambitious US$46 billion investment plan linking western China to the Arabian Sea.

The contract will let China build an international airport, a free trade area, and a maritime service company in the port with full authority to handle the port’s business operations.