Significant economic growth can be achieved by investing in Pakistan's marine resources

Significant economic growth can be achieved by investing in Pakistan's marine resources

By: Communicators - Business Team (July 23, 2024)

Pakistan’s strategic geographical position and extensive maritime resources present significant opportunities for economic growth, particularly through the blue economy. Key aspects of this potential include:

Marine Resources and Economic Growth

• Exclusive Economic Zone and Coastline: Pakistan's 290,000 square kilometer EEZ and 1,001 km coastline offer vast marine resources.

• Fish Production: In 2024, Pakistan's fish production reached 791 million metric tonnes, earning $534 million, mainly from exports to China, Japan, Malaysia, the Middle East, Thailand, and Sri Lanka.

• Agriculture Sector: The agriculture sector grew by 6.25%, emphasizing food security and price stability.

Infrastructure and Investments

• Budget Allocation: The government has prioritized the blue economy, allocating Rs24.6 billion for related sectors and awarding Rs429 million in technical supplementary grants for Gwadar’s development.

• Provincial Investments: The Punjab, Sindh, and Balochistan governments have allocated significant funds for aquaculture, forestry, wildlife, livestock, and fisheries.

• Port Infrastructure: Karachi Port Trust, Port Qasim Authority, and Gwadar Port play crucial roles in maritime traffic and cargo handling. Investments are needed to upgrade port infrastructure to match regional peers like Singapore and Dubai.

Economic Surveys and Reports

• Economic Growth: The Pakistan Economic Survey 2023-2024 showed a GDP growth of 2.4%.

• Pakistan National Shipping Corporation (PNSC): PNSC reported significant revenue and profits, indicating its vital role in maritime trade.

Key Sectors for Blue Economy

• Shipping and Shipbreaking: Expansion of these sectors can enhance economic growth.

• Renewable Energy and Offshore Minerals: Developing these resources can attract FDI and create sustainable economic opportunities.

• Tourism: Coastal and marine tourism, especially in Gwadar and other coastal areas, can boost the economy with proper infrastructure and security measures.

Recommendations for Sustainable Growth

• Infrastructure Development: Enhancing port and marine infrastructure to facilitate trade and attract investments.

• Value-Added Processing: Improving processing facilities to increase the value of marine exports.

• Sustainable Practices: Investing in sustainable technologies and practices to ensure long-term growth and environmental conservation.

• International Standards: Adhering to international maritime laws and standards to boost trade and investment.

Potential for Future Development

• China-Pakistan Economic Corridor (CPEC): Leveraging CPEC to enhance maritime trade and regional connectivity.

• Tourism Infrastructure: Developing tourism infrastructure in coastal areas to attract both local and international tourists.

• SME Support: Small and Medium Enterprises Development Authority’s (SMEDA) focus on the blue economy can provide necessary financial support to related businesses.

By focusing on these areas, Pakistan can harness its marine resources effectively, drive substantial economic growth, and establish a robust blue economy