Authors: Ahmad Ibrahim and Hussain Gardezi
Located at the crossroads of South Asia, the Middle East, and Central Asia, Pakistan has a 1,046-kilometer-long coastline and possesses a resource-rich maritime area of 290,000 square kilometers in the Arabian Sea. Persian Gulf, through which one-third of global oil trade passes, is situated at South-Western flank of Pakistan. In addition, Pakistan also offers the most feasible maritime connectivity to landlocked Central Asian Republics (CARs) and Afghanistan. In sum, Pakistan has all the credentials to emerge as a dominant maritime power.
Despite all natural advantages, Pakistan’s maritime sector remains underutilized, limiting its contribution to the national economy. Pakistan, primarily an agrarian country, has largely relied on its land-based resources to propel its economic progression. This heavy dependence on land resources, coupled with the unprecedented growth scale of the human population, has resulted in stifled economic growth on one hand and depletion of terrestrial resources on the other. To effectively utilize national maritime potential, there has always been a need to revitalize Pakistan’s maritime sector to achieve economic resilience.
The Prime Minister of Pakistan has recently endorsed a series of reforms in the maritime sector as proposed by the Task Force on Revamping Pakistan’s Maritime Sector. The approved initiatives will aim to enhance the efficiency and competitiveness of various sectors in the maritime domain.
The core of these reforms is the establishment of the Pakistan Maritime & Sea Port Authority (PMSPA). Although legislations regarding PMSPA are under development, once fully operationalized, PMSPA will serve as a centralized governing body tasked with streamlining and overseeing port operations across the country. The creation of PMSPA will overcome long-pending governance issues in the maritime sector. This initiative is a major leap forward that will align Pakistan’s maritime governance with international standards, clearing the way for enhancement in operational efficiency and subsequent consolidation of investors’ confidence.
Pakistan’s ports, including the Karachi Port Trust (KPT), Port Qasim Authority (PQA), and Gwadar Port Authority (GPA), are responsible for nations’ maritime trade and thus serve as key drivers of national economy. However, the true potential of these ports has not been exploited due to several issues. In an attempt to acquire strategic direction and enhance ports’ operational capacity and efficiency, the government has taken several important decisions. By 30 January 2025, professional CEOs will be appointed for overseeing ports activities. For improving the training and skill of the port labor force, approval of the Port Workers Training Institute (PWT) in accordance with International Labour Office (ILO) guidelines has been granted. Other initiatives, such as revising the National Ports Master Plan, standardizing tariffs, and reducing dwell time to 4-5 days, are also aimed at improving trade efficiency. Similarly, the introduction of digital solutions like the Pakistan Single Window (PSW) system and non-intrusive inspection (NII) scanners will modernize customs procedures, reducing delays and ensuring transparency. For increasing navigable depth, accommodating heavy-displacement commercial vessels, and increasing cargo handling capacity, dredging can be conducted at KPT and PQA. This will attract more and larger cargo vessels that transfer goods between major trade routes in the Indian Ocean and smaller regional ports. Thus, for increasing transshipment capacity of both ports, formulation of dredging plans has been sanctioned.
Pakistan is overwhelmingly reliant on foreign-flagged carriers for conducting maritime trade. Pakistan National Shipping Corporation (PNSC) currently operates a fleet of only 12 national flag carriers—a trivial number when compared with other regional maritime nations. To modernize and expand the PNWC fleet, plans have been crafted for introducing a new business model and potential privatization or share off-loading of PNSC. Similarly, PNSC fleet will be expanded by adding more ships, and focus will be given towards indigenous development of new ships for PNSC.
Similarly, the Karachi Shipyard & Engineering Works (KS&EW) is set to receive tax incentives for local shipbuilding projects. In conjunction, shipyard capacity will be upgraded. KS&EW is currently the only shipyard in Pakistan and has been focused more on constructing naval vessels for the Pakistan Navy (PN) and Pakistan Maritime Security Agency (PMSA). In parallel, KS&EW also engages with commercial sectors and, in collaboration with various government entities, has provided service vessels to support domestic infrastructure and logistics projects. Furthermore, port authorities like KPT and PQA also rely on KS&EW for the construction and maintenance of essential equipment, including pilot boats, tugboats, and dredging vessels. In the future, KS&EW will be building an 11,000-ton container ship for PNSC. But KS&EW has capacity limitations as far as ship size and simultaneous production of multiple ships are concerned. Therefore, with necessary upgrades in infrastructure, improved R&D, incorporation of automation, tax incentives, and policy support, KS&EW can revitalize the domestic shipbuilding industry and significantly reduce dependency on foreign facilities.
Besides shipbuilding, reforms have been announced for ship recycling. Gadani shipbreaking yard was once the leading shipbreaking yard in the world. However, due to a lack of infrastructure development, the absence of modern ship-breaking equipment and practices, poor human safety standards, and non-compliance with environmental safety regulations, the productivity of shipyards has reduced substantially in recent years. Recognizing its potential, the government plans to grant industrial status to the sector at the federal level and plans to establish a green recycling facility at Gadani, in compliance with the Hong Kong Convention. The aim of these initiatives is to revive the industry for generating economic revenue and facilitate the availability of raw construction material for other industries. For example, Pakistan’s domestic steel demand is in excess of 7.3 million tonnes annually, while local production is just 3.8 million tonnes. Revitalizing Gadani can bridge this gap, supplying raw materials to the construction industry while creating employment.
Besides maritime infrastructure, Pakistan’s fisheries sector is also underdeveloped. Therefore, its contribution to national GDP is less than 1 percent. Pakistan’s seafood exports have limited accessibility to Western markets due to non-compliance with several environmental regulations. Although the seafood industry, comprising both wild catch and aquaculture, generated 534 million USD in export revenue last year, it has export potential of more than 1 billion USD. Overfishing, outdated practices, and inadequate infrastructure have limited its potential. The recently approved five-year fisheries development plan focuses on upgrading and expanding domestic aquaculture businesses, with initiatives such as cluster shrimp farming and establishing hatcheries for lucrative fish species. These measures are expected to increase exports, enhance food security, and create employment opportunities in coastal areas. Furthermore, adopting sustainable fishing practices and modern aquaculture techniques can ensure compliance with international standards, enabling Pakistan to access markets in Europe, the United States, and the Far East.
The development of Pakistan’s maritime sector is pivotal for achieving economic resilience and unlocking the nation’s untapped potential. By modernizing infrastructure, streamlining governance, undertaking innovation, and aligning policies with international standards, the sector can emerge as a cornerstone of economic growth. Recent reforms announced by the government are welcome steps in the right direction. However, follow-on initiatives would be required in the future to effectively exploit national maritime potential in a sustainable manner. Only then would Pakistan be able to position itself as a pivotal regional maritime power.
* Hussain Gardezi, MPhil Scholar from Lahore Garrison University (LGU).
