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CWA # 2283, 1 September 2026
PR Takeaways
Pakistan's Blue Economy Crisis:

  Radhika M Agarwal
Radhika M Agarwal is currently an intern at the National Institute of Advanced Studies and is a postgraduate student in the department of Politics and International Relations at Pandit Deendayal Energy University, Gandhinagar.

Pakistan has extraordinary maritime assets. A coastline exceeding 1,000 kilometres. An Exclusive Economic Zone of 240,000 square kilometres. A continental shelf accounting for 36.4 per cent of the country's total mainland. Yet the maritime sector contributes merely 0.4 per cent to GDP and generates only USD 183 million annually.
Ninety-five per cent of Pakistan's international trade is seaborne. Ports handle 15 million barrels of crude oil daily. The estimated blue economy potential reaches USD 66.5 billion. Despite these assets, the sector remains chronically underdeveloped. Today, Pakistan faces a blue economy crisis rooted in institutional decay, outdated policies, and underinvestment.

1. The Merchant Fleet Collapse
In the early 1970s, Pakistan operated 71 merchant vessels. Nationalisation in 1974 changed everything. Growth ceased immediately. The fleet declined sharply. Today, the state-owned Pakistan National Shipping Corporation operates just 09 to 10 vessels. It handles only 07 per cent of total cargo. No new commercial vessels have been registered in twenty years. The fleet is ageing and shrinking.
The costs are substantial. Foreign operators handle 93 per cent of cargo. Pakistan loses USD 1.5 billion annually in foreign exchange. This is money that could finance port infrastructure, shipyards, or maritime training programs. The problem runs deeper than inefficiency. The 2001 Merchant Marine Shipping Policy and 1995 Deep Sea Fishing Policy remain unchanged for decades. These frameworks discourage investment and modernisation.

2. Fisheries and Infrastructure Deficits
The fisheries sector faces acute constraints. Post-harvest wastage reaches 74,000 tonnes annually. Small-scale operators lack adequate cold-chain systems. Preservation methods are substandard. Processing facilities are inadequate. Storage infrastructure is minimal. These gaps prevent value addition and limit export expansion.
Yet recent data shows promise. Seafood exports to China surged 24 per cent in 2025, reaching USD 255 million. Chilled mud crabs generated USD 31.9 million in the first eleven months of 2025. This growth occurred despite infrastructure deficits. With proper cold-chain systems and processing facilities, revenues could grow substantially.

3. Regional Comparisons
Pakistan's performance lags far behind regional peers. Maldives derives 18 per cent of GDP from maritime sectors through coastal tourism and fisheries. India generates USD 06 07 billion in maritime revenues, contributing 4.1 per cent to GDP through systematic port and shipping corridor upgrades along 7,500 kilometres of coastline. Bangladesh contributes 3.6 per cent to GDP with USD 5.6 billion in revenues, supporting 30 million people dependent on sea fishing and transport. Sri Lanka derives 1.3 per cent of GDP from maritime activities through shipping logistics and renewable energy initiatives.
These nations made deliberate policy choices. They invested in infrastructure and modernised regulations. Nations with comparable coastal endowments achieve 09 to 45 times higher maritime revenue per capita. Geography does not explain the difference. Policy does.

4. Contemporary Catalysts
In 2020, the government declared a "Year of Blue Economy" to boost fisheries, terminals, and shipping. Implementation stalled. Political instability, capital constraints, and pandemic disruptions derailed progress. These recent developments signal renewed opportunity. The Gwadar Deep Seaport serves as the centrepiece of the USD 60 billion China-Pakistan Economic Corridor. It is positioned strategically outside the Hormuz Strait chokepoint. Trade flows to Afghanistan and Central Asia pass through Gwadar.
Saudi Arabia pledged USD 10 billion for an oil refinery in Gwadar in 2019. The project experienced delays. High-level diplomacy in late 2022 actively revived it. Investor interest exists. Seafood export corridors to China expand. Market demand is demonstrated. Port capacity at Gwadar grows. These catalysts are real. Yet without systemic institutional reform, they remain isolated initiatives. They do not constitute sectoral transformation. Individual projects succeed, but the sector does not.

5. Four Major Challenges
First, regulatory modernisation. Outdated shipping and fishing policies must be replaced with competitive frameworks. These should attract domestic and foreign investment in shipping, fisheries, and maritime energy. Investment is currently discouraged by regulatory uncertainty and outdated rules.
Second, strategic integration. Maritime growth must be incorporated into national development narratives. It is absent from Pakistan Vision 2025. Other sectors transport, energy, and manufacturing receive strategic attention and budget allocation. Maritime does not. This must change.
Third, infrastructure deployment. Cold-chain systems must be built. Processing facilities must be constructed. Modern fishing vessels must be acquired. Port capacity must expand. Current constraints are fiscal and institutional. Fragmented responsibility prevents coordinated action. Ministry coordination is essential.
Fourth, resource exploration. The Murray Ridge contains significant zinc and copper deposits. The Makran basin holds over 9 billion barrels of shale gas potential. Joint ventures with international partners could unlock substantial resources. Technical expertise and partnership frameworks are currently underdeveloped in Pakistan.
 

To conclude, Pakistan's blue economy crisis is multifaceted. Decades of policy neglect have left a USD 66.5 billion opportunity unrealised. Employment potential is lost. Fiscal capacity is constrained. Strategic positioning is diminished. Regional peers prove this underperformance is choice-based, not inevitable. Pakistan must modernise shipping and fisheries policies that currently discourage investment. Maritime development requires formal integration into macro-development strategies. Infrastructure investment in processing, cold-chain systems, and ports must proceed. International partnerships for resource exploration must be established. Coordination across government ministries must improve. Without action, Pakistan's maritime assets will remain underutilised. Billions in revenue will be foregone, and Employment creation will not occur. Leading to a Strategic opportunity being passed.

References
Government of Pakistan. "Merchant Marine Shipping Policy." 2001.
Government of Pakistan. "Deep Sea Fishing Policy." 1995.
International Trade Centre. "Trade Statistics: Pakistan Seafood Exports to China." 2025.
Ministry of Maritime Affairs. "Blue Economy Development Framework." 2020.
Ministry of Planning. "Pakistan Vision 2025: One Nation, One Vision." 2014.
World Bank. "South Asian Maritime Sector Analysis." 2025.

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