Pakistan's blue economy: an ocean of missed opportunity

Business Recorder

a day ago

Pakistan's coastal waters hold the key to a multi-billion-dollar economy; nonetheless, this potential remains largely untapped. The country's blue economy has yet to find a meaningful place in national economic planning. This lack of vision risks Pakistan forfeiting its rightful share of the global blue economy, which is expected to surpass USD3 trillion by 2030.
According to the United Nations Development Programme (UNDP), Pakistan's blue economy contributes a meagre 0.4 percent to the national GDP's – an astonishingly low figure considering the country's 1,050-kilometre coastline and a 290,000 square kilometre Exclusive Economic Zone (EEZ).
In stark contrast, other regional countries like Bangladesh and Iran have made significant strides in harnessing the wealth of their coastal resources. By leveraging its robust fisheries sector, Bangladesh shipbuilding and shipbreaking sectors generate thousands of jobs and significant export revenue, contributing meaningfully to the national economy.
Similarly, Iran, with 30 ports along its coastline, handles 235 million tons of maritime traffic. It has dedicated USD 3.7 billion to develop and digitalise its commercial ports in 2025, upscaling its potential in maritime transport. With sturgeon farming, the Iran Fisheries Organisation has exported 18.5 tons of farmed caviar and 4,600 tons of sturgeon meat in 2023. Pakistan's poor maritime governance, underinvestment, and lack of integrated policy prevent it from securing a share in the global marine economy boom.
Pakistan's blue economy crisis is mainly infrastructural, as indicated by its exclusion from the Logistics Performance Index. The country's strategic coastal position enables it to function as a regional transit hub through its three major ports: Port Qasim, Karachi Port, and Gwadar.
Nonetheless, Port Qasim suffers from poor logistics operations and underused facilities, as its outdated infrastructure operates below 50percent of its maximum potential. Despite handling high traffic volumes, Karachi Port faces persistent congestion and limited expansion, operating below optimal capacity. Gwadar Port holds significant value but remains disconnected from Pakistan's industrial and energy networks. Pakistan needs to invest modernisation investments, improved logistics, and streamlined governance to maximise the potential of its ports to attain recognition as a leading maritime hub.
Similarly, the fisheries sector of Pakistan is chronically underperforming. The country ranks 35th worldwide on the illegal, unreported, and unregulated (IUU) Fishing Risk Index because its waters continue to experience widespread IUU fishing activities. Moreover, post-harvest losses reach 35 percent because the sector lacks adequate cold storage facilities and is experiencing poor handling practices.
The fish exports from Pakistan are 136,000 metric tonnes with a value of USD 400 million, despite having the potential to reach USD 2 billion. According to the World Bank, revenues would increase by 60 percent if Pakistan implements better port management along with regulatory reform and technological improvements.
Beyond trade and fisheries, Pakistan's blue economy holds immense potential in Marine Renewable Energy. Pakistan's coastline, particularly the 17 major creeks of the Indus Delta, offers significant opportunities for tidal energy generation. The estimated power output from tidal energy projects in these regions amounts to 900 to 1,100 MW, offering a renewable solution for coastal energy. The EEZ of Pakistan holds potential for the development of offshore wind and wave energy projects. Yet these possibilities remain absent from Pakistan's primary energy policy.
Pakistan also has considerable scope in seabed mining and blue bio-technology. Pakistan's EEZ holds vast offshore deposits of oil, gas, and minerals, awaiting extractions. The Indus and Makran offshore areas contain hydrocarbon resources, while Murray Ridge has potential for hard rock metallic minerals. Moreover, the blue bio-technology sector leverages marine bio-diversity to develop pharmaceuticals, dietary supplements and bio-based products, offering promising applications in disease treatment.
The market for this industry worldwide will expand from USD 5.65 billion in 2024 to USD 10.54 billion by 2032 at a 7.15 percent annual growth rate. Pakistan, however, lacks a roadmap or institutions to support innovation in this field.
The human cost of this inaction is also worth noting. Pakistan's coastal communities, particularly in Sindh and Baluchistan, face high rates of poverty, underemployment, and environmental vulnerability. A well-governed blue economy could offer diversemarine livelihoods, skills development, and employment in sectors ranging from aquaculture to eco-tourism. Instead, years of ad hoc planning have left these communities dependent on informal fishing practices, vulnerable to climate shocks, such as coastal erosion and salinization.
In short, unlocking the blue economy's potential is not a matter of discovering new resources but managing existing ones more wisely. It requires investment in coastal infrastructure, digitised port logistics, vocational training for a marine workforce, and research collaboration with universities and international partners.
The private sector must also be incentivised to invest in value-added industries like seafood processing, aquaculture, and sustainable tourism. With the right ecosystem, the blue economy could become a new engine for Pakistan's economic diversification, reducing reliance on remittances and traditional agriculture while aligning with the country's climate goals.
Copyright Business Recorder, 2025