Comprehensive Maritime Strategic Aspects in the view of National Security Policy

In Backgrounder
March 28, 2022
Ayesha Riaz
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The Maritime industry is one of the key factors to secure Pakistan’s economic future. As 95% of its trade is happening through the sea and Pakistan has always been on its verge of having an improper management in the field of maritime. So, the emphasis must be on how Pakistan will proceed to implement the

The Maritime industry is one of the key factors to secure Pakistan’s economic future. As 95% of its trade is happening through the sea and Pakistan has always been on its verge of having an improper management in the field of maritime. So, the emphasis must be on how Pakistan will proceed to implement the recommendations mentioned in the National Security Policy. And whether Pakistan would be able to overcome its economic challenges or not.

Pakistan is an important littoral state. Besides, CPEC has served as a game changing project of which Pakistan must take advantage to affiliate with other international trading states. I believe, Pakistan should serve as a platform for forging greater unity due to its prized geo-economic location. As it not only reflects the potential of Pakistan’s blue economy but also culminates its geostrategic and geo-military importance.

Considering Pakistan at the present-day stands at $450 million maritime revenue. However, the actual potential of Pakistan’s blue economy sector is more than $100 billion which is far less than that of Bangladesh and India who stand at 5.6 and 6 billion $ respectively. This is because Pakistan is not focused on its maritime industry and is left far behind.

India has the largest desalination plant in South Asia, which produces 36.5 million liters of water per year. India along with other 150 counties is making use of their marine assets and Pakistan has yet to fully discover one of its God-gifted assets called the Exclusive Economic Zone (EEZ). EEZ is not available for all sea-bearing countries therefore, Pakistan must emphasize on the use of desalination plants to get fresh water, exploration of minerals under the sea like oil, gas, undersea mining of Sulphur, and use of plankton and krill as sources of protein.

Further, despite vast fish export potential, Pakistan’s fishing sector only contributes 0.6% with a revenue of $500 million. Pakistan’s coastal lines are rich of marine life, and home to all types of biodiversity and bio-productivity. This when utilized properly can contribute modestly to economic growth, provision of food and social development. In addition, it can also open employment opportunities for thousands of people. As per estimates fisheries in Pakistan has the potential to grow up to the worth of $2 billion by equipping modern machinery and techniques with concerted efforts of the government.

In 1970s, Pakistan’s ship-breaking yard, Gadani was one of the most efficient and largest ship-breaking yards in the world. But now, unfortunately Pakistan is presently generating only $1.6 billion of revenue which can be increased up to $3 billion. Pakistan’s shipbreaking industry must focus on its infrastructure and safety standards. So that increased labor may be available more profoundly as Pakistan has a grave history of industrial accidents. Which will then also open its gateways internationally especially in the European market.

Currently, the coastal tourism in Pakistan contributes $0.314 billion to the economy. However, if Pakistan makes use of its coastal beauty and spends appropriately on its tourism spots, it might lead to a revenue of approximately $5 billion. Apart from this, Pakistan needs distinct steps for the promotion of its maritime tourism to flourish the economy more efficiently, like the recent arrival of world’s fastest boat at Pakistan’s coastline which hyped the tourists towards sea-based activities.

Moreover, Pakistan could take productive initiatives by getting involved in the international waters market. Especially by the means of the untouched industry of Pakistan known as the Water sports. As it has an estimated potential of growth up to $1 billion in Pakistan.

Pakistan’s current marine exports hand out approximately $183 million while its potential stands at $9 billion. Pakistan needs to explore opportunities in Transshipping as it can generate a revenue of $500 million. More flexible policies must be set in motion such as the port tariff transshipment policy 2020 introduced in 2020 by the Ministry of Maritime Affairs. Moreover, considering the distance to reach Gulf countries from the Indian ocean, Gwadar provides the shortest shipping distance which can be potentially developed into a full-fledge regional hub on the globe.

Besides, Pakistan does not have an all-encompassing document on Shipping policy. Rather, different ordinances, regulations and policy documents gathered from different state departments culminate to make the National Shipping Policy. This is a disadvantage because until or unless there is a bona fide management document, a particular sector cannot work productively. This is one of the major reasons that currently Pakistan’s National Shipping Cooperation only has a 7% in the national exports and imports. While the rest is carried out by foreign companies as only port authorities accompanied with Pakistan National Shipping Corporation is present. Pakistan requires its own public or semi-public shipping bodies rather than the foreign entities so that Pakistan can save more than $1.5 billion annually.

Sea is the cheapest way of trading, therefore in a nutshell, Pakistan must stress on revising Maritime Zones Act and formulating a proper Maritime Economic Act. As a good maritime strategic policy will help Pakistan achieve its economic goals in no time if effectively executed. Not to mention, the NSP is already realigning Pakistan from geo-politics towards geo-economics. And Pakistan must also look out for its internal maritime framework to create new platforms for foreign investments and governmental collaborations, automation of its ports, and effective working of law enforcement.