Gwadar port has great strategic and economic importance for Pakistan. It is located on the Arabian Sea coast of Balochistan, just 120km from Iran and at the mouth of the Strait of Hormuz. This gives it an ideal location for trade with Central Asia and China. Developing Gwadar port will improve Pakistan's economy through new jobs, trade and transit fees with other countries. The port is being constructed in two phases, with China agreeing to fund the more extensive second phase, in order to transform Gwadar into a key international trade hub.