Maritime Potential of Pakistan

The Centre for Aerospace and Security Studies (CASS), Lahore, organised a compelling guest lecture titled “Maritime Potential of Pakistan” featuring Commodore Syed Muhammad Obaidullah (Retd), a distinguished maritime and defence analyst. The event served as a comprehensive exploration of Pakistan’s maritime landscape, highlighting both its vast untapped potential and the strategic imperatives required for progress. The session commenced with an overview of the global maritime domain, establishing the sea’s role as a driver of economic prosperity and geopolitical relevance. Commodore Obaidullah began by emphasising the historical trajectory of nations that embraced maritime strength to attain power and affluence, cautioning that Pakistan’s persistent continental mindset has curtailed its ability to fully realise the economic benefits of its maritime geography.

 

Moving from the global to the local, the speaker drew attention to the transformative concept of the blue economy, explaining how the oceans now serve as pivotal resources to meet global needs for food, energy, and minerals. He positioned this context to underscore Pakistan’s own maritime endowment, including a strategically located coastline and an extensive Exclusive Economic Zone. He lamented, however, that despite some progress, Pakistan’s approach to maritime development remains fragmented, lacking cohesive policy frameworks and long-term strategic vision. This laid the groundwork for his call to action—advocating for national recognition of the maritime sector as a key economic driver.

 

Commodore Obaidullah then delved into the economic significance of the global shipping industry. He presented compelling data demonstrating that maritime trade underpins a $300 billion freight business, employs 5 million people directly, and supports 31 million additional jobs in allied sectors, while contributing a staggering $1.5 trillion to the global GDP. Using these statistics, he highlighted the efficiency and cost-effectiveness of sea transport compared to other modes, illustrating that sea transport costs just Rs. 0.15 per metric ton per kilometre—far lower than pipeline, railway, or road alternatives. These figures were used to draw a stark contrast with Pakistan’s current dependence on foreign shipping services for 85% of its cargo, costing the nation $5–6 billion annually.

 

He then elaborated on the maritime workforce, particularly the role of seafarers in global trade. Pakistan, despite having 20,000 registered seafarers, sees only 5,000 actively sailing, compared to countries like the Philippines and China whose seafarers generate billions in foreign exchange. This, according to the speaker, reflected the underutilisation of Pakistani human capital in international maritime ventures. He urged reforms to better integrate local talent into the global shipping workforce, thereby boosting remittances and enhancing Pakistan’s standing in the maritime labour market.

 

A major portion of the lecture was dedicated to assessing Pakistan’s current maritime capabilities. Commodore Obaidullah detailed the operations of the Pakistan National Shipping Corporation (PNSC), which despite fluctuations, has shown recent improvement, carrying 13% of the country’s sea trade in FY2023. He highlighted the leadership of Vice-Admiral Syed Tauqir Hussain Naqvi as pivotal to PNSC’s transformation, noting strategic decentralisation, procurement reform, and anti-corruption initiatives as key factors in its turnaround from a failing public entity to a profit-generating organisation. This success, he suggested, could serve as a model for reforming other struggling state-owned enterprises.

 

Attention then shifted to the fishing industry, where the speaker painted a mixed picture. Valued at $1.2 billion and employing 1.5 million people, Pakistan’s fishing sector exports about $450 million annually. Yet, issues such as overfishing, weak regulation, outdated handling techniques, and poaching by Indian vessels have stymied its growth. While countries like China and Vietnam generate billions in fishing exports, Pakistan’s performance lags far behind. The speaker highlighted the need for sustainable fishing practices, better post-harvest infrastructure, and stricter enforcement against illegal fishing to revitalise this sector.

 

Following this, the speaker examined the ship-breaking industry, with a specific focus on Gadani. Once the world’s largest, Gadani now faces challenges related to poor working conditions, safety violations, and a lack of environmental compliance. Despite employing thousands, the yard risks losing competitiveness if it fails to adopt green recycling practices in line with international conventions, such as the Hong Kong International Convention. Commodore Obaidullah stressed the urgency of upgrading standards to prevent Pakistan from being sidelined by more compliant competitors like Bangladesh and Sri Lanka.

 

Shipbuilding also featured prominently in the discussion, with Karachi Shipyard and Engineering Works (KSEW) positioned as a cornerstone of national ship construction. Since its inception in 1956, KSEW has built over 500 ships and repaired more than 5,000 vessels, playing a vital role in Pakistan’s naval capabilities. Notable advancements include debt clearance in 2016, major upgrades approved in 2017, and the 2021 implementation of the Ship Lift and Transfer System. Nevertheless, the speaker noted that relying on a single shipyard limits Pakistan’s capacity to scale up maritime production, prompting the initiation of a second shipyard in Gwadar for handling larger vessels.

 

As the lecture approached its conclusion, Commodore Obaidullah identified critical weaknesses impeding maritime growth. These included limited fleet capacity, overdependence on foreign ships, underemployment of Pakistani seafarers, bureaucratic inefficiencies, and the absence of integrated coastal tourism. However, he was equally optimistic about the opportunities ahead. He outlined avenues such as expanding seaborne trade, investing in vessels at historically low prices, leveraging Long-Term Financing Facilities for ship acquisition, and capitalising on extended incentives under the 2001 Shipping Policy.

 

In terms of actionable recommendations, the speaker urged the government to strengthen regulatory oversight in the fishing industry and curb overfishing. He called upon politicians to incorporate maritime policy in their manifestos and commit to a five-year Maritime Action Plan. Furthermore, he encouraged private investors to participate in ferry and shipping services and stressed the need for educational institutions to offer maritime-focused programs. The media, too, was encouraged to maintain consistent coverage of maritime issues beyond isolated news stories, thereby sustaining national awareness and interest.

 

The session concluded with a thought-provoking Q&A segment. When asked about PNSC’s success, Commodore Obaidullah attributed it to visionary leadership and structural reforms. On environmental compliance in shipbreaking, he emphasised that Pakistan’s adherence to international standards was not optional but essential for retaining its market share. Addressing a question on blue carbon markets, he praised Pakistan’s Delta Blue Carbon project in Sindh, which aims to restore mangroves and generate over 250 million carbon credits. He suggested that linking with China’s carbon market could further amplify the project’s value.