Equipped with BRI’s spirit of inclusive connectivity with state-of-art airway features, China-aided freshly-inaugurated New Gwadar International Airport (NGIA) is going to serve a dynamic precursor for spin-off effects on development horizons of Gwadar as well as Balochistan.
The aviation sector is a major contributor to the global economy, accounting for more than $3.5 trillion of GDP. Being a new feather in the cap of air transport industry in Pakistan, NGIA carries all potentials to contribute Balochistan’s economy and its GDP growth in the backdrop of Rs 321 billion development budget set for 2024-25.
One of the impactful roles of New Gwadar International Airport (NGIA) in the development lies in attracting local and international investment. Since the inception of Pakistan, Balochistan and Gwadar area have direly needed modern air connectivity. Scattered businesses’ locations afflicted by lack of air transportation system have also marred the development pace in Gwadar and Balochistan. Indeed, good air transport links play a role in influencing where companies choose to invest.
Given the fact, operationalization of the new Gwadar International Airport unveiled by Chinese Premier Li and Pakistan PM Shehbaz Sharif, potential investors will enjoy cutting-edge air travelling quality that will boost their confidence once for all. According to a Civil Aviation Authority survey, 56 percent of companies consider international transport links to be an essential factor for locating businesses. It also found that 18 percent of businesses’ past investment decisions were directly affected by the absence of good air transport links, especially in high tech sectors. Around 28 percent of companies believe that innovation and investment in research and development would be very badly or fairly badly affected if air transport services were constrained, the survey said.
Since many projects have been completed to revamp airways, roadways and railways under CPEC framework, Balochistan has seen improvement in investments, signaling the region’s potential for growth. Infrastructure projects, including new Gwadar International Airport has chartered a new course of connectivity to help link Balochistan more effectively with the rest of Pakistan and neighbouring countries. Such developments open doors to new investment opportunities, offering a chance for the province to leverage its vast resources for economic growth.
The New Gwadar International Airport has a substantial role in Balochistan Comprehensive Development and Growth Strategy (BCDGS) 2021-2026 launched by government of Balochistan which aims to achieve inclusive and sustainable development and growth in all sectors of the provincial economy by creating opportunities for local people for livelihood and improved living standards.
Owing to its geostrategic and geo-economic position, NGIA is also set to furnish a positive role in boosting international trade. It will create a crucial link between businesses and various global markets, greatly expanding their potential customer base. This is especially important for tech-driven, knowledge-based industries and time-sensitive product suppliers. By reaching more customers through air travel at New Gwadar International Airport, companies will achieve abundant economic gains. Increased exposure to global competition also pushes local businesses in Gwadar and Balochistan to improve their efficiency to stay competitive.
Many industries use air transport to support their ‘just-in-time’ production processes, providing flexibility in the supply chain and cost savings by reducing the need for large inventories. The NGIA stands prepared to meet such trends in a befitting manner.
Moreover, New Gwadar International Airport has an anchoring role in stimulating the tourism industry in the region. Airports are vital for growing tourism. They are crucial in promoting the tourist industry because flying is the main way people travel internationally. Airports attract visitors by providing excellent facilities, reasonable prices, and easy access to various places.
Besides good transportation, properties near NGIA will come with various appealing perks. Because NGIA sits on a large land area, businesspeople will get advantage to create unique property offerings that are hard to replicate elsewhere, like in central business districts (CBDs). Major international airports are surrounded by childcare facilities, business parks, office spaces, supermarkets, shops, and eateries. Many previously undervalued suburbs around airports are now highly desired due to the range of services available at the airport. All such benefits are abundantly available for investors around New Gwadar International Airport (NGIA).
A well-connected airport significantly promotes infrastructure and real estate growth. Demand for housing, offices, and commercial spaces near airports surges, leading to a boom in real estate development. NGIA is playing a significant role in inspiring diverse enterprising businesspersons especially stakeholders in the property market.
The convenience offered by NGIA has already led to property value appreciation. It will also contribute to government revenue through taxes, customs duties, fees, and other charges. These funds can be reinvested in infrastructure, education, healthcare, and public services, further amplifying their positive economic impact.
Meanwhile, the economic impact of NGIA also goes beyond its immediate boundary. Local businesses like hotels, restaurants, vehicle rental agencies, and taxi services will benefit significantly from NGIA’s presence resulting in more job opportunities and higher wages in these sectors.
Also, the growth of nearby infrastructure like hotels and commercial centres boosts the construction and real estate sectors, leading to more jobs for construction workers, architects, engineers, project managers, and related professionals. The job prospects stemming from airports usually offer attractive pay packages and benefits, enhancing living standards within the community. Consequently, this stimulates domestic spending, thereby strengthening the overall regional economy in Balochistan. NGIA will also help improve the labour market by making it easier for companies to attract high quality employees from around the globe.
