“And it is He who subjected the sea for you to eat from it tender meat and to extract from it ornaments which you wear. And you see the ships ploughing through it, and [He subjected it] that you may seek of His bounty; and perhaps you will be grateful.”– Al-Quran (16:14)Pakistan, a land of strategic might, where civilizations meet and take their flight. The country possesses an extensive maritime territory, covering 290,058 square kilometers, with a 1,047 kilometers coastal length. On an annual basis, around 36,000 ships navigate these waters, accounting for about 40 percent of the total global maritime traffic connecting commercialized Europe, the resource-rich Middle East, and the energy-transmitting Asia-Pacific region. This circumstance renders Pakistani waters and its coastlines (specially the Port of Gwadar), as the most advantageous route for the famous Chinese Belt and Road Initiative.
“He who commands the sea” said Themistocles “has command of everything.”
Pakistan is currently facing humongous economic challenges. Unfortunately, the country has yet not explored its concealed coastal wealth which holds huge potential to renovate its economic landscape.
World is readily embracing the concept of “Blue Economy,” steering its course towards achieving sustainable economic expansion. Blue Economy is defined as, “The economic activity associated with the oceans, seas and coasts which includes a wide range of sectors, such as fisheries, aquaculture, shipping, tourism and renewable energy.” The blue economy makes a significant contribution to the global economy by producing annual economic output in billions of dollars and providing millions of jobs.
Pakistan’s coastal position, extensive nautical resources and copious natural heritage provides a platform for fostering financial growth. With a long coastal belt, Exclusive Economic Zone spanning 240,000 square kilometers and a further 50,000 square kilometers of continental shelf, Pakistan stands as a key oceanic trade hub within the Indian Ocean. The current expansion of the Gwadar port as part of the China-Pakistan Economic Corridor (CPEC) makes Pakistan an eminent player in the region. Having an approximate amount exceeding $100 billion; Pakistan’s blue economy has the ability to flare an economic miracle, propelling the nation towards a wealthy future.
Pakistan enjoys a strategically advantageous position in the region, a vast network of sea routes that serve as arteries for global merchandise are a vivid proof of it. Our heavy reliance on its maritime sector is accentuated by the fact that more than 90 pc of trade volume comes via sea route. In spite of the remarkable yearly seaborne trade volume surpassing 94 million tons in 2020, the Pakistan National Shipping Corporation (PNSC) handled for merely 9.33 pc of these shipments. This discrepancy translates into a staggering loss of $5 billion in cargo charges paid to foreign vessels. Pakistan can increase the revenue from the maritime sector by investing in the national shipping fleet. PNSC has proved itself, by showing its 2020 net profit of Rs 2,414 million and a 10-pc surge in taxes and dividends in the national treasure. This depicts the competency of the shipping industry in Pakistan to generate huge economic benefits for the country if proper capital is allocated. Country has a vast potential in marine tourism, given its attractive coastline and the opulent variety of natural, cultural, and religious resources. Though the federal government in the late 1980s acknowledged the importance of tourism and its efforts to nurture this sector but is still languishing due to political instability, inconsistencies in policies and concerns of security (which though has improved). Comparing the neighbouring countries for instance India (or Bharat) has adroitly harnessed her coastal wealth to propel the growth of tourism sector, which has shown results in the form of surged foreign exchange and revenues. To unleash the capacity of marine tourism in Pakistan, governmental efforts ought to be concentrated upon the diversification of activities encompassing boat excursions, aquatic sports, coastal infrastructure enhancements and a spectrum of water-centric recreations. In order to allure investment; the authorities must cajole stakeholders with incentives like low taxes, simple administrative procedures and security assurances. By optimizing marine tourism not only can we make the lives of local communities better but also get benefited at macro level. Nature has also blessed the fishing sector with immense resources but still it contributes 0.4 pc in the country’s GDP. Unchecked black market and the huge costs faced by people are the reason why our fisher man is behind his fellow Asian competitors. Concerns of the local fishermen in Gwadar remain unaddressed which becomes part of the national headlines after a few months.
Other than the aforementioned sectors there are other fields in the blue economy like Blue Biotechnology which can particularly aid a country’s pharmaceutical and cosmetic industries. Investment in Marine research can further broaden the vision of our policymakers. Pakistan is facing energy which can be countered by using the cheap renewable energy sources from her offshore and tidal energy. Virgin beaches and islands in Balochistan remain hidden from the tourists.
Recently, in order to attract foreign investment in Pakistan, the Board of Investment Ordinance 2001 was amended by adding Chapter II-A as a result SIFC (Special Investment Facilitation Council) came into being. In order to get rid of red-tapeism from the governance this body was formulated. This one window operation aims to provide a business-friendly environment. It has for now focused on information technology, mining and agriculture sectors. Unfortunately, Maritime is still not in the SIFC ministries list.
Amalgamating it with the blue economy will do wonders. It will diversify economic opportunities for us. SIFC is looking for investment from the Arab world. What greater prospect can there be than the incorporation of the Blue Economy? We shall find ourselves more intimately linked. Gulfies are major consumers of seafood. Pakistan can work with Arab states to develop joint fisheries or aquaculture ventures and export seafood products to their markets. Pakistan can also collaborate with them in development of tourist spots in coastal sides like Emaar was once working in Karachi.
In order for Islamabad to achieve sustained prosperity, it must uncover its concealed coastal wealth. For that it is essential that the country swiftly adopts a rigorous, regionally-customized and an environmentally sustainable policy framework. The framework that also includes the lessons of the triumphs from her South Asian neighbours and other examples on the global arena.
The author is a student of Government And Public Policy