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2020
Ayesha Majid
1/10/2020
Blue Economy of Pakistan
Introduction
As of yet there is no globally
accepted definition of the term
“Blue Economy”. The concept of
Blue Economy was coined in 2012,
at United Nations Conference on
Sustainable Development Growth
held in Rio de Janeiro. European
Commission defines it as "All
economic activities related to
oceans, seas and coasts.” The
World Bank, defines blue
economy as "sustainable use of
ocean resources for economic
growth, improved livelihoods, and
jobs while preserving the health
of ocean ecosystem”.
Blue economy covers a wide
range of interlinked established
and emerging sectors that use
costal and marine resources for
revenue generation. It is also
known as also known as “Oceans
Economy”, or “Blue Growth”. The
concept of a blue economy has
different, and often conflicting,
meanings for different people,
resulting in incompatible or
blurred definitions and
applications. It incorporates all
business and economic
occupations associated with the
oceans, coastal zones, harbours,
ports and other sea-based
activities, as well as overall ocean ecosystem health and usage. Similar to Green Economy, Blue
Economy is also aligned with the Sustainable Development Goals of 2014, specifically with the
“life below water” article, where the desired outcome is “not only using the ocean resources for
economic opportunities but also protecting and preserving oceans for the future”.
Oceans cover 72% of planet surface and provide a substantial portion of the global population
with food and livelihood. Since majority of these maritime activities happen in the Indian Ocean
the current focus of Blue Economy supporters is promoting smart, sustainable and inclusive
growth and employment opportunities within the Indian Ocean region’s maritime economic
activities. After near depletion of terrestrial reserves, the developed and near develop economies
have moved towards marine reserves and resources to curb food & water shortages and buffer
unemployment due to automation. Essentially, our survival depends on healthy seas as
dependency of human life increases on them for various dimensions of life. This concept has also
coined a new term called Blue Growth. “Blue Growth is the long-term strategy to support
sustainable growth in the marine and maritime sectors as a whole.” Seas and oceans are drivers
for the European economy and have great potential for innovation and growth.
The ideal model of a blue economy, therefore, is built around “triple bottom line” decision
making, integrating economic, social and environmental needs for optimal benefits all round.
With a holistic definition in place, the next step is to make it a tangible reality. It looks at a bigger
picture than ocean management and is not limited to shipping or fishery sector but covers all
other sectors as well. These include the issues of sovereignty and security, sustaining national
development, access to food and energy, management of natural resources, effects of climate
change, and resilience in the face of natural disasters.
For companies to adapt this new school of thought operational innovation needs to take place.
As they will have to factor in the new business dynamics and dimensions blue economy theory
brings with it.
Background
Blue growth or blue economy as a term was first conceived during the UN's Rio+20 meeting in
2012, as a parallel for green economy for the world's oceans. Though the term is relatively new
the concept is quite old. Its traces can be found in the bronze age as the civilizations back than
too used sea and river bodies for transportation and extraction of resources. Recently “Blue
Economy” has become a popular buzz word over the past decade. Drawing from the notion of a
“Green Economy”. The concept has evolved from a "blue aspect of a green economy" to a
paradigm in its own right. In it, Oceans and lakes are seen as "development areas" that should be
given an opportunity for sustainable development. It has spun out from the ideology of Maritime
Clusters. Professor Michael Porter defined Maritime Cluster as “a geographically proximate
group of inter- connected companies and associated institutions in a particular field, linked by
commonalities and complementarities (external economies)”. The phenomenon of maritime
clusters has spawned a rich body of scholarly work in the last fifteen years. The blue economy
has diverse components, including established traditional ocean industries to birth of new
industries and services.
The Blue Economy goes beyond the Globalized and the Green Economy. All new jobs are
generated in only 10 countries around the world, and 40% of the population earns less than $3
per day.
Blue Economy in Pakistan
Blue economy is practical and cautious use of oceans and other water resources for the
economic development of a country. Pakistan is an important maritime state in the Indian Ocean
blessed with approximately 1,050 km long coastline and the Exclusive Economic Zone covering
about 240,000 sq. Pakistan’s blue economic growth is heavily dependent on; aquatic life,
agriculture, biotechnology, energy, health and recreational sector. To optimally benefit from
this natural endowment, there is a need for an integrated National Maritime Policy. Development
of effective national compliance mechanism and stimulating renewal of potential maritime
sectors through regional and international collaboration can usher the country into an era of
significant growth. The efficiency of Pakistani ports should be enhanced by improving the
network of rail and road infrastructure. The geostrategic location of Pakistan brings exclusive
opportunities for maritime based sectors, as the country has vast maritime potential with
unexplored natural resources. This can be achieved through joint ventures. As highlighted by
Pakistan Navy’s head:
Malaysia and Pakistan can work together to build up a sustainable Blue
Economy, as it will not only strengthen the naval ties between both countries
but also bring economic opportunities.- Pakistan’s Naval Chief, Admiral Zafar
Mahmood Abbasi
The vast coastline of Pakistan naturally offers the option of deep-sea water ports which means a
much bigger volume of ship could be stationed along the coastline. If Port Qasim and Gwadar
Port are utilized to their maximum potential. Only then the maritime sustainability in Pakistan
can be ensured. Not just that but working at full potential of the ports will depict success of the
CPEC project as it is partially gauged through the development in all the sectors of the states.
Taking example from China, the Maritime Silk Route figures prominently in its Belt and Road
Initiative. One can see that China’s state-owned companies are vigorously busy in developing its
network along the maritime route. While the CPEC project relies mostly upon the smooth
functioning of the ports yet the maritime sector of Pakistan requires proper policy guidance.
There needs to pay a major attention to securing and developing sea routes. As Pakistan’s trade,
economic and technological indicators are showing a hopeful picture, largely owing to the CPEC
project, it is equally important to tap the economic potential of the maritime sector.
Some work is already underway though such as the completion of the first phase of the Gwadar
Port; the regular shipping service by the China Ocean Shipping Company (Cosco) from Gwadar;
and the decision to develop Keti Bandar Port in Sindh under CPEC, heralds a new beginning for
our stagnant maritime sector and has the potential to embark Pakistan on the road to Green-
Blue Economy.
References
Maritime Clusters Are Making The Blue Economy A Sustainable Reality: Economia Azul: Marinha
Do Brasil URL: https://www.marinha.mil.br/economia-azul/noticias/maritime-clusters-are-
making-blue-economy-sustainable-reality
Making The Blue Economy Sustainable, Natalie Parletta, URL:
https://www.forbes.com/sites/natalieparletta/2019/06/21/making-the-blue-economy-a-
sustainable-reality/
Blue Economic in Pakistan, URL: https://www.scribd.com/document/365718879/BLue-
economic-in-Pakistan-pdf
Blue Economy, The Nation, URL: https://nation.com.pk/09-Nov-2019/blue-economy
Challenges To Pakistan's Blue Economy, https://www.dawn.com/news/1512141

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Pakistan's Untapped Potential in the Blue Economy

  • 2. Introduction As of yet there is no globally accepted definition of the term “Blue Economy”. The concept of Blue Economy was coined in 2012, at United Nations Conference on Sustainable Development Growth held in Rio de Janeiro. European Commission defines it as "All economic activities related to oceans, seas and coasts.” The World Bank, defines blue economy as "sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem”. Blue economy covers a wide range of interlinked established and emerging sectors that use costal and marine resources for revenue generation. It is also known as also known as “Oceans Economy”, or “Blue Growth”. The concept of a blue economy has different, and often conflicting, meanings for different people, resulting in incompatible or blurred definitions and applications. It incorporates all business and economic occupations associated with the oceans, coastal zones, harbours, ports and other sea-based
  • 3. activities, as well as overall ocean ecosystem health and usage. Similar to Green Economy, Blue Economy is also aligned with the Sustainable Development Goals of 2014, specifically with the “life below water” article, where the desired outcome is “not only using the ocean resources for economic opportunities but also protecting and preserving oceans for the future”. Oceans cover 72% of planet surface and provide a substantial portion of the global population with food and livelihood. Since majority of these maritime activities happen in the Indian Ocean the current focus of Blue Economy supporters is promoting smart, sustainable and inclusive growth and employment opportunities within the Indian Ocean region’s maritime economic activities. After near depletion of terrestrial reserves, the developed and near develop economies have moved towards marine reserves and resources to curb food & water shortages and buffer unemployment due to automation. Essentially, our survival depends on healthy seas as dependency of human life increases on them for various dimensions of life. This concept has also coined a new term called Blue Growth. “Blue Growth is the long-term strategy to support sustainable growth in the marine and maritime sectors as a whole.” Seas and oceans are drivers for the European economy and have great potential for innovation and growth. The ideal model of a blue economy, therefore, is built around “triple bottom line” decision making, integrating economic, social and environmental needs for optimal benefits all round. With a holistic definition in place, the next step is to make it a tangible reality. It looks at a bigger picture than ocean management and is not limited to shipping or fishery sector but covers all other sectors as well. These include the issues of sovereignty and security, sustaining national development, access to food and energy, management of natural resources, effects of climate change, and resilience in the face of natural disasters. For companies to adapt this new school of thought operational innovation needs to take place. As they will have to factor in the new business dynamics and dimensions blue economy theory brings with it. Background Blue growth or blue economy as a term was first conceived during the UN's Rio+20 meeting in 2012, as a parallel for green economy for the world's oceans. Though the term is relatively new the concept is quite old. Its traces can be found in the bronze age as the civilizations back than too used sea and river bodies for transportation and extraction of resources. Recently “Blue Economy” has become a popular buzz word over the past decade. Drawing from the notion of a “Green Economy”. The concept has evolved from a "blue aspect of a green economy" to a paradigm in its own right. In it, Oceans and lakes are seen as "development areas" that should be
  • 4. given an opportunity for sustainable development. It has spun out from the ideology of Maritime Clusters. Professor Michael Porter defined Maritime Cluster as “a geographically proximate group of inter- connected companies and associated institutions in a particular field, linked by commonalities and complementarities (external economies)”. The phenomenon of maritime clusters has spawned a rich body of scholarly work in the last fifteen years. The blue economy has diverse components, including established traditional ocean industries to birth of new industries and services. The Blue Economy goes beyond the Globalized and the Green Economy. All new jobs are generated in only 10 countries around the world, and 40% of the population earns less than $3 per day. Blue Economy in Pakistan Blue economy is practical and cautious use of oceans and other water resources for the economic development of a country. Pakistan is an important maritime state in the Indian Ocean blessed with approximately 1,050 km long coastline and the Exclusive Economic Zone covering about 240,000 sq. Pakistan’s blue economic growth is heavily dependent on; aquatic life, agriculture, biotechnology, energy, health and recreational sector. To optimally benefit from
  • 5. this natural endowment, there is a need for an integrated National Maritime Policy. Development of effective national compliance mechanism and stimulating renewal of potential maritime sectors through regional and international collaboration can usher the country into an era of significant growth. The efficiency of Pakistani ports should be enhanced by improving the network of rail and road infrastructure. The geostrategic location of Pakistan brings exclusive opportunities for maritime based sectors, as the country has vast maritime potential with unexplored natural resources. This can be achieved through joint ventures. As highlighted by Pakistan Navy’s head: Malaysia and Pakistan can work together to build up a sustainable Blue Economy, as it will not only strengthen the naval ties between both countries but also bring economic opportunities.- Pakistan’s Naval Chief, Admiral Zafar Mahmood Abbasi The vast coastline of Pakistan naturally offers the option of deep-sea water ports which means a much bigger volume of ship could be stationed along the coastline. If Port Qasim and Gwadar Port are utilized to their maximum potential. Only then the maritime sustainability in Pakistan can be ensured. Not just that but working at full potential of the ports will depict success of the CPEC project as it is partially gauged through the development in all the sectors of the states. Taking example from China, the Maritime Silk Route figures prominently in its Belt and Road Initiative. One can see that China’s state-owned companies are vigorously busy in developing its network along the maritime route. While the CPEC project relies mostly upon the smooth functioning of the ports yet the maritime sector of Pakistan requires proper policy guidance. There needs to pay a major attention to securing and developing sea routes. As Pakistan’s trade, economic and technological indicators are showing a hopeful picture, largely owing to the CPEC project, it is equally important to tap the economic potential of the maritime sector. Some work is already underway though such as the completion of the first phase of the Gwadar Port; the regular shipping service by the China Ocean Shipping Company (Cosco) from Gwadar; and the decision to develop Keti Bandar Port in Sindh under CPEC, heralds a new beginning for our stagnant maritime sector and has the potential to embark Pakistan on the road to Green- Blue Economy.
  • 6. References Maritime Clusters Are Making The Blue Economy A Sustainable Reality: Economia Azul: Marinha Do Brasil URL: https://www.marinha.mil.br/economia-azul/noticias/maritime-clusters-are- making-blue-economy-sustainable-reality Making The Blue Economy Sustainable, Natalie Parletta, URL: https://www.forbes.com/sites/natalieparletta/2019/06/21/making-the-blue-economy-a- sustainable-reality/ Blue Economic in Pakistan, URL: https://www.scribd.com/document/365718879/BLue- economic-in-Pakistan-pdf Blue Economy, The Nation, URL: https://nation.com.pk/09-Nov-2019/blue-economy Challenges To Pakistan's Blue Economy, https://www.dawn.com/news/1512141