Pakistan: A Nation with Sea but with Sea Blindness

In today’s world, oceans are more than vast bodies of water; they are avenues of opportunity, security, and economic strength. However, with eighty percent of the world’s trade goes through the seas, forty percent of the world’s population living near coastal areas, and more than three billion people relying on the oceans for their livelihood, Pakistan’s Sea Blindness is a missed opportunity for both economic growth and environmental sustainability.

The Blue Economy Concept

The term “Blue Economy” was introduced at the 2012 Rio+20 Conference on Sustainable Development. It refers to the sustainable use of coastal and marine resources to drive economic growth while promoting environmental conservation. The United Nations’ 2030 Agenda links the Blue Economy to the Sustainable Development Goal (SDG) 14. The World Bank defines it as the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving ocean ecosystems.”

For countries that have embraced the Blue Economy, the benefits are immense, yet Pakistan’s Sea Blindness prevents it from fully capitalizing on this opportunity.

The Blue Economy encompasses traditional maritime industries like fisheries, coastal tourism, and maritime transport, alongside emerging sectors such as aquaculture, marine biotechnology, deep-sea mining, ocean renewable energy, and maritime tourism.

Global Examples of Maritime Success

Many countries recognize the strategic, military, and economic importance of their coastlines and oceans and have transformed them into engines of growth and security. Nations like China, the US, South Africa, Egypt, and even conflict-ridden Yemen tap into their maritime resources to stimulate trade, tourism, and coastal development. In contrast, Pakistan’s Sea Blindness continues to undermine its potential to harness its vast maritime advantages.

In addition, middle-income countries such as South Africa, and Egypt have also thriving maritime economic sectors. For example, South Africa accounts for 3.5% of global sea trade, with 80% of its trade value driven by maritime routes. It ranks in the top 15 countries for trade conducted by sea distance. South African ports manage 76% of container traffic in sub-Saharan Africa, with Durban as the largest container port. Its biodiverse coast attracts eco-tourists for activities such as whale watching, snorkeling, scuba diving, and shark diving. Its expansive beaches and marine wildlife make it a popular destination, positioning the country as a prime spot for eco-tourism. This stands in stark contrast to Pakistan’s Sea Blindness, where maritime tourism remains underdeveloped despite a 990-kilometer coastline.

Approximately 90 percent of Egypt’s international trade is seaborne and relies on maritime transport services, and this significantly contributes to its economic development, with the port of Alexandria, the country’s main commercial port, handling approximately 60 percent of foreign trade. Egypt Vision 2030 sustainable development strategy positions infrastructure development as essential for enhancing industrial competitiveness and fostering modern, innovative industries. As part of this vision, the capacity of the country’s various seaports is expected to increase significantly, from 120 million metric tons to 370 million metric tons by 2030.

On the other hand, Pakistan’s Sea Blindness means its ports, particularly Gwadar, remain underutilized despite their massive potential.

Also See: Prospects of Aquaculture in Pakistan: An Overview

Pakistan’s Maritime Neglect

Pakistan, despite having one of the most strategically located and pristine coastlines in the region, continues to remain alarmingly sea-blind. Pakistan has a coastline of approximately 990 km, an Exclusive Economic Zone covering 240,000 square kilometres, and an additional continental shelf area of about 50,000 square kilometres, establishing its significance as a coastal state. About 95% of trade is conducted through its maritime sector, primarily via Karachi, Bin Qasim, and the recently operational Gwadar Port, yet Pakistan’s Sea Blindness continues to hinder its ability to capitalize on these resources.

While others utilize their coastlines as gateways to the world, Pakistan’s disregard for its maritime sector has led to missed opportunities and economic dependence.

While the government has recognized this sector’s importance and made some strides, such as the introduction of the Blue Economy in 2020 and amending the Merchant Marine Policy (MMP) which exempts taxes for Pakistani ship-owning companies and prioritizes berthing for Pakistan-flagged vessels, much more is needed to fully unlock its potential.

Challenges Facing Pakistan’s Maritime Sector

Despite its strategic location and vast coastline, Pakistan continues to overlook the immense potential of its maritime sector. From underutilized ports to outdated infrastructure, the country faces numerous challenges that hinder its growth. While regional competitors are embracing maritime innovation and economic liberalization, Pakistan remains stuck in outdated policies and practices, exacerbating its Sea Blindness. To address these challenges, a comprehensive shift in policy, private sector involvement, and investment is needed. Below are some critical areas where Pakistan’s maritime sector is falling short.

Limited Private Sector Involvement

For a country fixated on grand infrastructure projects and high-profile ventures, Pakistan’s neglect of its maritime sector is both perplexing and disappointing. The absence of private shipping companies, combined with an underutilized Pakistan National Shipping Corporation (PNSC) and Pakistan Shipyard and Engineering Works (PSEW), reveals how profoundly we underestimate the potential of maritime development which eventually showcases the extent of Pakistan’s Sea Blindness.

Protectionist Policies and Economic Liberalization

Pakistan’s protectionist policies have hindered manufacturing growth, while regional competitors like Turkey and Chile have liberalized their economies. The high tariff rate of 11.2% in Pakistan, compared to Sri Lanka’s 7.0% and Malaysia’s 4.5%, further underscores the need for economic liberalization to boost trade and maritime involvement.

Infrastructure and Investment Gaps

Unfortunately, the business mindset of Pakistan is still focused on real estate ventures and is negligent of the economic benefits private shipping companies can make. This lack of interest in the shipping industry is puzzling, especially when we think about the possibilities the Gwadar port could offer if only we had a fleet of vessels to complement it. Even Pakistan National Shipping Corporation (PNSC) was barred from procuring new ships for two years. Meanwhile, Pakistan State Oil, another state-owned giant, spends billions annually on foreign tanker services rather than utilizing PNSC for the import of petroleum products.

Infrastructure development, fleet upgradation, and diversification require increased funding. However, the maritime division’s reduced budget hampers progress. Autonomy for entities like PNSC could foster investment and competition. Pakistan also needs more trained maritime professionals to meet both domestic and international demand.

The shipping sector is governed by national policies and international regulations. PNSC, despite being the only Pakistani-flagged carrier, controls a small portion of the market (10-11%). This contributes to significant freight charges, costing Pakistan $5 billion annually.

Maritime Tourism Domain: Another Ironic Manifestation

Maritime tourism, with Pakistan’s 990-kilometer coastline, holds immense potential for economic growth and job creation. However, poor governance and security concerns have hindered its development. By investing in marine tourism activities such as yachting, scuba diving, and coastal tourism, Pakistan can boost foreign exchange earnings and improve local livelihoods, following examples from neighbouring regions like Kerala. Maritime tourism can generate $1-2 Billion annually for Pakistan through domestic/international tourism and employing coastal community people.

Strengthening Cybersecurity and Digital Infrastructure in Maritime Sectors

Interestingly, while Pakistan grapples with Sea Blindness in the maritime sector, it is making strides in addressing a different aspect of modern infrastructure—cybersecurity.

The government of Pakistan is set to roll out its first-ever Artificial Intelligence (AI) Policy by early 2025, with a focus on cybersecurity, including the protection of critical infrastructure such as ports and maritime logistics.

AI’s integration into cybersecurity will enable Pakistan to detect and respond to cyber threats in real-time, which could have profound implications for maritime trade and port security. As digital infrastructure continues to evolve, Pakistan’s Sea Blindness could be mitigated through the use of AI to monitor and safeguard its ports, shipping networks, and maritime trade data from cyberattacks and breaches.

At the same time, AI for cybersecurity will also help protect sensitive maritime data. The integration of AI systems to monitor cyber threats at Pakistan’s ports like Gwadar and Karachi will ensure that Pakistan’s digital and maritime sectors are interconnected. This will be crucial for ensuring that Pakistan can modernize its maritime industry, while also securing it against the rising tide of global cyber threats.

Conclusion: The Path Forward

Bureaucratic inefficiency, political instability, and a pervasive lack of cooperation among state-owned enterprises all stymie our ability to realize a maritime vision. The solution is clear: establish a cohesive policy that fosters inter-agency cooperation, streamlines shipping development, and incentivizes private investment in the maritime sector. Without this, we are condemning ourselves to a cycle of dependence on foreign shippers and perpetuating debt, wasting billions on foreign shipping costs, and allowing Pakistan’s considerable economic potential to slip through our fingers.

It is time Pakistan took to the sea – not only as a path to economic self-sufficiency but as an essential part of its national identity. We need the will and foresight to make this transformation. Otherwise, our maritime sector will continue to be a neglected frontier, with untold wealth just beyond our shores.

SAT Editorial Desk

Your go-to editorial hub for policy perspectives and informed analysis on pressing regional and global issues.

South Asia Times

Pakistan: A Nation with Sea but with Sea Blindness