Pakistan, a nation grappling with economic challenges and a perennial quest for sustainable growth, is fundamentally a maritime state with a coastline spanning over 1,000 kilometers. The Exclusive Economic Zone (EEZ) of Pakistan covers approximately 240,000 square kilometers, with an additional continental shelf area of around 50,000 square kilometers, an area larger than the combined landmass of the provinces of Khyber Pakhtunkhwa and Punjab.
Yet, the country struggles with channelizing its blue economy potential towards economic growth. The contribution of Pakistan’s blue economy to the national Gross Domestic Product (GDP) is currently less than 1% which is a stark disparity between the immense potential of Pakistan and the effective utilization of this resource for economic growth.
In recent years, there has been a gradual rise in research and discourse at various academic, policy, and think tank platforms regarding the prospects and challenges of Pakistan’s blue economy, which makes us ponder whether the country’s blue economy is a missed opportunity or if it is finally becoming the country’s next growth frontier. The evidence is overwhelmingly in favor of the latter, provided that the policy implementation gaps are decisively addressed and closed.
Pakistan’s Blue Economy: The Hidden Catalyst of Economic Advancement
Globally, the Blue Economy is considered a valuable engine of economic growth that encompasses traditional fishing to include deep-sea mining, renewable energy, biodiversity, and coastal tourism.
But Pakistan’s meager contribution of roughly $450 million annually from the maritime sector is dwarfed by its regional peers and global counterparts, reflecting the depth of underutilization of the resource.
The potential of Pakistan’s blue economy lies in enhancing the role of the four essential pillars. These pillars include Pakistan’s maritime trade and infrastructure, fisheries and aquaculture, shipbuilding and recycling, and coastal tourism.
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Maritime Infrastructure and Trade: The development of maritime infrastructure is crucial for increasing maritime trade. Currently, more than 95 percent of Pakistan’s trade flows through its sea routes, and despite this, the country is struggling due to its limited shipping capacity. Pakistan National Shipping Corporation (PNSC) operates just 10 vessels of various types with a combined cargo carrying capacity of only 724,643 tons, which is largely insufficient to meet the growing trade demands of the country.
In June this year, Prime Minister Shahbaz Sharif ordered the overhaul of PNSC, demanding a detailed business strategy to enhance its performance while stressing that the country spends more than $4 billion annually from the national exchequer to meet the trade demands and compensate for the limitations of PNSC.
The same declaration was made in the Maritime Vision 2035, and although this is a step in the right direction, it also requires the commitment of both the government machinery and the PNSC to improve both the quality of current ships and acquire new cargo ships, which will require overcoming financial constraints. It is also imperative to ensure that the operational capacity of Karachi Port Trust (KPT), Port Qasim Authority (PQA), and the recently modified Gwadar Port is enhanced to meet the domestic demands and the international criteria.
Shipbuilding and Recycling Industry: Another pillar to enhance the maritime potential of Pakistan is the restructuring of the shipbuilding and recycling industry. The world’s third-largest Gadani shipbreaking yard currently suffers from not only poor safety standards but also non-compliance with the global environmental conventions, such as the Hong Kong Convention (HKC).
The Federal Minister of Maritime Affairs, Junaid Anwar Chaudhry, recently announced the restructuring of Gadani shipbreaking yard to meet the green compliance criteria, as green ship recycling would reduce pollution, cut emissions, and support the country’s circular economy.
The federal government has also approved a 12 billion PKR project for the modernization of the shipbreaking yard to include emergency services, a hazardous waste facility, and workers’ safety measures. The establishment of a National Centre of Excellence to enhance sustainable maritime practices has also been announced by the federal government, which is to be established in Karachi.
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Fisheries and Aquaculture: Another pillar that requires extensive improvement is the fisheries and aquaculture. The fisheries contribute approximately 0.31 percent of a country’s GDP, with recent earnings of around $534 million, while the export potential of this sector is estimated to be over $1 billion annually.
This disparity is due to several factors, including poor hygiene standards and a lack of compliance with international quality standards, as demonstrated by past bans on Pakistani seafood imports by the European Union. Substandard fishing practices such as overfishing, illegal fishing, and seafood causes the depletion of marine stocks, while the aquaculture remains largely untapped in the country.
Coastal Tourism: Similarly, the entire coastal belt of Pakistan offers beautiful landscapes and stunning biodiversity, but its contribution to the national GDP is often neglected. The tourism sector in the coastal region is hampered by a severe lack of infrastructure, insufficient advertising efforts, and security concerns.
The development of environmentally sustainable coastal tourism has the potential not only to unlock billions of dollars in surplus but it would also provide a much-needed livelihood to the marginalized communities in Balochistan and Sindh.
A Silver Lining on the Horizon
Despite the organizational challenges and financial constraints, there has been some progress in transforming Pakistan’s blue economy and maritime trade potential, which is a silver lining. It is also important to underscore that the growth of this sector also requires a multi-sectoral policy approach defined by effective governance and sustainability.
As of now, Pakistan stands at a decisive moment; the tide is turning in Pakistan’s favor, and with strategic reforms coupled with their effective implementation, the Arabian Sea can cease to be merely a backdrop and instead become the engine of Pakistan’s economic growth and resilience.
Javaria Khalid is a writer and researcher, who specializes in Pakistan's Foreign Policy Analysis, transatlantic geopolitics, and Pakistan’s relations with the European countries and the EU. She can be reached at javariakhalid011@outlook.com
