Pakistan is the fifth-most populous country in the world, with a population growth rate of 1.9 percent annually. With such a large population, Pakistan is facing significant economic challenges. However, the country has many untapped potential sectors and resources that can significantly contribute to its economic growth. The blue economy is among those sectors that can contribute substantially to Pakistan’s economic development, as this sector has enormous potential and many untapped maritime resources. However, policymakers have paid less attention to this sector in the past.
Recently, policymakers and the government have been paying attention to this sector, as the 21st century is regarded as the century of the blue economy and ocean civilization. Pakistan’s National Institute of Maritime Affairs is playing an active role in promoting the blue economy. According to them, the blue economy is a sustainable economic model primarily focusing on using ocean resources for economic growth, improved livelihoods, and ecosystem health. Currently, Pakistan’s revenue from the blue economy is just 450 million dollars, whereas the actual potential of this sector is more than 100 billion dollars. According to Gunter Pauli, founder of the blue economic model, the blue economy is the unceasing utilization of resources without damage to nature or surroundings.
Pakistan’s 1,050-kilometer coastal area, including the exclusive economic zone (EEZ) and continental shelf, offers enough opportunities to bolster its economic growth. The Pakistani government is undertaking measures such as exploring and extracting the Indian Ocean’s untapped mineral resources, promoting tourism in the region, and enhancing the production of fisheries to accelerate the progress of the blue economy, as these areas have much-untapped potential. Pakistan’s coastal areas are known for their rich lobster, shrimp, and cuttlefish production. Annually, nearly 600,000 metric tons of fish are produced in the country. The fishing industry contributes 1 percent to the GDP of the country. According to the report of the World Bank, “Revitalizing Pakistan’s Fisheries,” Pakistan earns less than 3 percent of its fisheries export revenue from the United States (US), Japan, and the European Union (EU), which are the largest seafood markets. Pakistan’s revenue only accounts for 9.3 million dollars annually from them.
Tourist spots in Pakistan’s coastal areas will also contribute to the progress of the blue economy. Ormara, situated between Karachi and Gawadar, has outstanding beaches that will be a significant source of attraction for tourists. Astola Island, known as the island of seven hills in the Pasni district, is another tourist attraction site. The coastal areas of Baluchistan and Sindh will also be sources of tidal energy generation used in industries in special economic zones, which will contribute to the blue economy and diversify the country’s energy options.
Pakistan made a deal with Saudi Arabia in 2020, under which an oil refinery and petrochemical complex will be constructed at the Baluchistan deep-sea Port of Gawadar to untap the country’s coastal areas’ energy resources. This agreement will create enormous direct and indirect employment opportunities that will significantly contribute to economic development and also help the government save 3 billion dollars annually, which were used for oil imports. This step was taken to speed up the progress of the blue economy.
The government of Pakistan has taken measures to build infrastructures such as ports and harbors because ports are the most important component for the rapid progress of the blue economy. In addition, seaports are necessary because 90 percent of the country’s trade occurs through the sea route. The Pakistan Coastline has three main ports: Karachi port, bin Qasim port, and Gawadar port. The Karachi port has been operational since 1887 and has a total of 33 berths, of which three are appointed for managing liquid cargo while the remaining 30 handle containers and solid freight. Gawadar Port was constructed under the China-Pakistan Economic Corridor (CPEC), and it is the flagship project of CPEC. The port provides a transit route so that goods from China, Afghanistan, and Central Asian countries can be exported to other countries. Oil from Gulf countries can be transported back to China as Pakistan provides the shortest route to sea. The development of this port will bring socio-economic benefits and accelerate the blue economy’s progress. Qasim port is designated to manage coal cargo.
Although Pakistan has a vast potential for the blue economy, significant challenges prevent its progress. Marine pollution is a considerable challenge in this regard, as harmful chemicals and wastes are released from industries into water bodies that not only contaminate water but also threaten the survival of the marine population. Due to this pollution, aquatic species are becoming extinct, and the population of marine species is decreasing rapidly. As a result, families who depend on fishing as their means of livelihood have to search for other means of living. Another considerable challenge is the need for proper infrastructure around ports, such as roads and railways, which slows down the logistic chain across the country, preventing the blue economy’s progress. Lack of technical experience in the exploration and extraction of energy resources from the ocean, despite having an exclusive economic zone covering an area of 260,000 square kilometers, further prevents the progress of the blue economy.
Thus, Pakistan has significant potential for the blue economy. The government has taken measures such as promoting tourism, building infrastructure like ports and harbors, signing contracts with foreign companies to explore mineral resources in Baluchistan, and setting up roads and railway tracks across Pakistan to ensure smooth and timely delivery of goods. However, a significant gap exists between the actual potential and the government’s measures to fully utilize that potential for blue economy progress. Marine pollution, lack of technical experience in exploration and extraction, and climate change impacts such as flooding and rising sea levels damage critical infrastructure in ports, further hindering the progress of the blue economy. Thus, the government must incorporate the element of climate change into its policies and measures to promote the progress of the blue economy.
The Author, M. Hammad Madni is a student of International Relations at Air University, with a proven track record of publishing opinion articles on global affairs with the Institute of Strategic Studies (ISSI).His expertise lies in providing insightful perspectives on international relations, geopolitics, and global governance.
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