China will save millions of dollars every year by shortening its route for energy imports from the Middle East by about 12,000 km and also gets greater access to the Indian Ocean.
On the other hand, Pakistan expects infrastructural enhancement and the reduction, or even elimination, of its severe energy crisis by getting in return an estimated $34 billion for various hydro, solar, thermal, and wind-driven power plants.
Chinese interests in Pakistan are not only economically driven. A fully operational Gwadar port not only provides China with lucrative commercial benefits but also huge strategic and geopolitical advantages.
Although at present Gwadar is being developed for commercial purposes only, there are huge chances for it to develop into a well-equipped military naval base in the future, which would provide China an enormous strategic advantage in the region.
