Saba Javed

Pakistan’s blue economy has huge potential to earn foreign exchange through export of fisheries, promoting coastal tourism and maritime transport and exploring minerals as 95% of the country’s trade is carried out through sea.

Talking to WealthPK in this regard, Abdullah Khalid, an associate research fellow at the Sustainable Development Policy Institute (SDPI), said blue economy could play a vital role in economic progress and development of the country as it offers multifaceted avenues for maritime industrial development such as fisheries, coastal tourism, maritime transport, salt manufacturing, shipbuilding, marine engineering, aquaculture, marine biotechnology, deep sea-bed mining, oceanic renewable energy, and maritime tourism. “It has huge potential to create job opportunities for the people.”

Currently blue assets contribute an estimated $1 billion or around 0.4% to Pakistan’s GDP. In comparison, about 10% of China's GDP came from its blue economy sectors in 2022. Unfortunately, Pakistan’s blue economy’s share to GDP is quite low. According to the World Bank, marine resources in Pakistan are worth at least $100 billion.

Abdullah Khalid said Pakistan needs to focus on sea for an export-led economy as it would bring the country out of difficult situation. “Pakistan’s coastal areas are rich in bio-productivity and bio-diversity as they provide huge breeding grounds for commercially important seafood varieties like crabs and shrimps potentially worth $2 billion annually. However as of today the seafood exports earnings are only around $450 million (0.2% of GDP),” he pointed out. 

He said maritime tourism contributes only around $300 million (0.1% of GDP) despite having huge potential for domestic and international tourism. He said it is a good sign that the government has now started focusing on the maritime sector after decades of neglect. “Of late Pakistan’s maritime sector is experiencing substantial growth due to favourable policies and investments. Pakistan has to shift fast towards the blue economy as 95% of trade is carried out through sea.”

The SDPI research fellow said construction of Gwadar as a transit and transhipment port under the CPEC has further augmented Pakistan’s maritime sector. “A new shipyard is under construction in Gwadar, and the development of Keti Bandar Port is taking place in Sindh. CPEC prospects are attracting foreign investment in the maritime sector. Saudi Arabia has also expressed its desire to construct a $10 billion oil refinery in Gwadar.”

He said the projects like Gwadar East-Bay Expressway, construction of Breakwaters, dredging of berthing areas and channels, development of a free economic zone, Gwadar International Airport and Gwadar Smart Port City will hugely contribute to our blue economy by enhancing trade connectivity and tourist inflow.

He suggested that in order to take more advantage of the blue resources available in Pakistan, the government should mobilise investment in the sector. “It should ensure provision of easy credit and interest-free loans to stakeholders. The ministry of maritime affairs needs to take effective initiatives to enhance the efficiency and value addition of fishing sector. The government should also work with think tanks and civil society to raise awareness regarding preservation of mangrove forests. Special maritime industrial zones need to be developed.”

Credit: Independent News Pakistan-WealthPk