The blue economy is a rapidly growing sector that has the potential to contribute significantly to Pakistan’s economic recovery. Over the past few years, Pakistan’s economic crisis has aggravated immensely.
A country home to 220 million people has experienced stagnant growth, skyrocketing inflation, rupee depreciation, shrinking foreign reserves, and severe disruption of demand-supply chains. As per the State Bank of Pakistan’s statistics, during the first 11 months of the fiscal year 2022–23, the total debt of Pakistan amplified from 11.13-58.962 trillion PKR.
All this has highlighted the need for an alternative economic strategy to generate employment, assure food security, and encourage economic progress. In this scenario, reliance on the blue economy emerges as the most suitable way forward. The World Bank defines the blue economy as the “sustainable use of the ocean’s resources to benefit economic growth, livelihoods, and ocean’s ecological health.”
It is undeniable that oceans play a significant role in global trade and commerce. They facilitate the transportation of goods and services throughout the globe. According to World Bank research in 2018, the blue economy contributes 3-6 trillion USD (3%) to global GDP.
It is also said that if it were a country, the ocean economy would rank seventh globally. Unfortunately, the blue economy sector of Pakistan is largely untapped. This naturally-gifted country comprises a long coastline stretching over 1,000 km, which hosts diverse marine resources.
The country’s waters are home to the world’s sixth-largest delta, the Indus Delta, mangrove forests, Karachi Port, Bin Qasim Port, and Gwadar Port. The Indus Delta is a vast and intricate ecosystem with various flora and fauna. Millions of Pakistanis are reliant on this delta for freshwater.
The busiest and most important commercial gateway in Pakistan is Karachi Port. Oil and gas supplies are exported from the deep-water port of Bin Qasim. In addition, Gwadar Port, a rather recently-constructed port on the Arabian Sea, is anticipated to significantly impact the China-Pakistan Economic Corridor’s growth. These natural resources (fisheries, fossil fuels, etc.), and infrastructural advantages, provide Pakistan with an incredible opportunity to milk the benefits of the blue economy.
Another potential benefit of developing the blue sector is employment. With 6.42% population being unemployed, advancing the blue economy sector would generate a hefty revenue and also provide employment to millions. The country’s long coastline and rich marine resources offer a vast opportunity for economic development in the marine sector. Indonesia, Japan, Malaysia, etc., highly rely on their blue sector for economic prosperity.
Studies predict that investment in Baddu and Bundal Island, Karachi, can potentially outstrip Dubai in tourism. Port Qasim and Karachi Port collectively bring over Rs 20 billion in annual revenue. This can be further accentuated by efficiently utilizing the Gwadar Port as part of the CPEC.
Due to its proximity to the Suez Canal and Straits of Hormuz, the 62 billion USD Gwadar port can serve as a hub for transshipment, ship restoration, and construction. Pakistan offers the most rapid sea links to Afghanistan, Central Asian Republics, and Beijing through Gwadar.
The search for numerous maritime-potential zones in Pakistan is the need of the hour. Coastal tourism is one prominent example. Maldives generates millions of dollars each year through blue tourism. Due to its dependency on imported food, the country is prone to changes in availability and price. The blue economy will decrease this vulnerability by offering a home food source.
Blue economy holds the potential to boost Pakistan’s economy significantly. However, to reach this potential, some challenges need to be addressed.
Sea blindness is one of the pressing challenges. Sea blindness refers to a lack of awareness among policymakers and society regarding the importance of the ocean’s resources for the economy. Subsequently, a lack of investment in the blue economy results in a loss of opportunities.
The outdated fishing methods are still prevalent in Pakistan despite massive technological advancements. These methods are ineffective, unsustainable, and contribute to the depletion of fish stocks.
The nation’s ports also lack the requisite infrastructure and inadequate equipment to support contemporary logistics and shipping operations. This makes Pakistan less competitive in the world maritime industry.
Lastly, ineffective governance is a significant barrier to Pakistan’s blue economy’s development. The country’s marine laws are outdated and inefficient, fostering illicit fishing, pollution, and other environmental damage.
There is a dire need to invest in technology to address these challenges. For instance, offshore fish farming and seaweed cultivation, renewable energy from the ocean, such as wave and tidal power, and marine pollution control, such as oil spill cleanup and desalination, and raising awareness regarding the blue economy to benefit from it.
It is prime time for Pakistan to comprehend the blue economic paradigm fully. Aquaculture can be prominent in offering an ecologically friendly food source for the nation’s expanding population. The tourist industry could also benefit from the blue economy because Pakistan’s coastline and marine landscape make for an interesting and alluring travel destination.
Initiatives to promote blue growth can serve as an “economic engine” for Pakistan’s collapsed economy. This will be a key to eliminating poverty, overcoming water scarcity, tackling food insecurity, and ensuring sustainable growth as the blue economic structure aligns with Sustainable Development Goal 14 and Pakistan’s commitment to the 2030 Agenda for Sustainable Development, which focuses on using marine resources wisely and sustainably to promote sustainable development.
Pakistan is sitting on a goldmine but is not yet mining it. Considering the immense maritime potential of Pakistan, it is high time to shift focus from land to ocean resources for the state’s development and to support its collapsing economy.
By adopting a comprehensive strategy and emphasizing sustainable practices, Pakistan can maximize the economic benefits of its maritime resources while preserving both the environment and the well-being of its citizens.
*The author is an International Relations graduate from Kinnaird College for Women, Lahore, Pakistan
**The views expressed in this article are those of the author and do not necessarily reflect the opinions of The Diplomatic Insight. The organization neither endorses nor assumes any responsibility for the content of this article.
