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Pakistan's Blue Economy: Vast Offshore Resources in Exclusive Economic Zone
Pakistan has a 1,000 kilometers long coastline on the Arabian Sea with maritime sovereignty over 200 nautical miles deep Exclusive Economic Zone (EEZ) and 150 nautical miles of Continental Shelf. This adds 290,000 square kilometers of sea or about 36% of the country's land area open for tapping vast resources in it.
Pakistan's "Blue Economy" in this extended economic zone includes seafood and energy resources as well as international trade connectivity with the rest of the world. It offers opportunities for water sports, recreation and tourism in the coastal areas of Pakistan. One sign of the recognition of Pakistan's blue economy is the ongoing three-day International Maritime Conference organized on the theme of ‘Global Geopolitics in Transition: Rethinking Maritime Dynamics in the Indian Ocean Region’ under the auspices of National Institute of Maritime Affairs.
Offshore Energy Resources:
A Pakistan Basin Study conducted in 2009 found that the country has six onshore and two offshore basins; offshore basins being the Indus basin and the Makran basin in the Arabian Sea.
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Top 3 Offshore Drilling Sites in Asia-Pacific. Source: Bloomberg |
The Indus offshore basin is a rift basin that geologists say developed after the separation of the Indian Plate from Africa in the late Jurassic period. It is believed to be the second largest submarine fan system in the world after the Bay of Bengal with high probability of hydrocarbon discoveries.
The Makran Offshore basin is separated from the Indus Offshore basin by Murray ridge, according to Syed Mustafa Amjad's report in Dawn. It is an oceanic and continental crust subduction zone with deepwater trenches and volcanic activity. The basin consists of oceanic crust and periodic emergence of temporary mud islands along the coast suggesting strong evidence of large hydrocarbon deposits.
American energy giant Exxon-Mobil has joined the offshore oil and gas exploration efforts started by Oil and Gas Development Corporation (OGDC), Pakistan Petroleum Limited (PPL) and Italian energy giant ENI, according to media reports.
Each company has 25% stake in the joint venture under an agreement signed at the Prime Minister’s Secretariat in May 2018 among ExxonMobil, Government Holdings Private Limited (GHPL), PPL, ENI and OGDC.
Exxon-Mobile's entry in Pakistan brings deep offshore drilling technology, its long experience and financial resources to the country. It is expected to accelerate exploration and more discoveries.
CPEC and Trade:
Pakistan has built Gwadar as its third major deep sea port after Karachi and Port Qasim. Gwadar port's planned capacity when it is completed will be 300 to 400 million tons of cargo annually. It is comparable to the capacity of all of India's ports combined annual capacity of 500 million tons of cargo today. It is far larger than the 10-12 million tons cargo handling capacity planned for Chabahar.
"We believe Gwadar is following in the footsteps of Shenzhen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." Hao-Yeh Chang, China Pak Investments Corporation
To put Gwadar's scale in perspective, let's compare it with the largest US port of Long Beach which handles 80 million tons of cargo, about a quarter of what Gwadar will handle upon completion of the project. Gawadar port will be capable of handling the world's largest container ships and massive oil tankers.
Gawadar port is being built in Pakistan by the Chinese as part of the ambitious $46 billion China-Pakistan Economic Corridor (CPEC) that will eventually serve as Hong Kong West for growing Chinese trade with the Middle East and Europe. CPEC will also enable Pakistan to bypass Afghanistan to trade with Central Asia through China across China's borders with Tajikistan, Kyrgyzstan and Kazakhstan.
The volume of Gwadar property searches surged 14-fold on Pakistan’s largest real estate database, Zameen.com, between 2014 and 2016, up from a prior rate of a few hundred a month. “It’s like a gold rush,” said Chief Executive Zeeshan Ali Khan to an Express Tribune newspaper reporter. “Anyone who is interested in real estate, be it an investor or a developer, is eyeing Gwadar.”
Chinese private investment company China Pak Investment Corporation has recently announced it is acquiring 3.6 million square foot International Port City project in Gwadar. It plans to develop a $150 million gated community to handle the influx of 500,000 Chinese professionals expected in Gwadar by 2022.
Seafood Industry:
Pakistan’s fishing industry is very small relative to its vast potential. Pakistani fishermen own small fishing boats and their catch is very limited. The industry contributes only 0.4% of the country's $315 billion GDP. However, the nation's seafood exports are growing, In fiscal year 2017-18, seafood exports increased 27.94% to 198,420 tons, earning $451.026 million.
Pakistani finishing industry is in need of major modernization to make it more productive. China’s infrastructure investments in Pakistan are opening up the local fisheries sector on the Arabian Sea, with a major Chinese power station builder completing a fishing port as a “gift” to local people, according to a report in SeafoodSource. State-owned China State Power Investment Corp., which is building several power plants in Pakistan, said a new fishing port in Lasbela region on the Arabian Sea would aid the economy and increase the efficiency of the local fishing community in Baluchistan Province (of which Lasbela is part), says the report.
Summary:
Pakistan is beginning to focus on tapping vast resources in its 290,000 square kilometers of sea or about 36% of the country's land area. Fishing industry is being modernized with Chinese help and Exxon has begun exploring offshore oil and gas reserves. Gwadar has been built as the third deep sea port and a major new metropolis is being built t hat could one day rival Chinese city of Shenzhen.
Related Links:
US EIA Estimates of Oil and Gas in Pakistan
Exxon Exploring Offshore Oil and Gas in Pakistan
Riaz Haq
Trump Truth Social Posts On X
@TrumpTruthOnX
We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States “extremely happy.” I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is.
We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves. We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!
Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!
https://x.com/TrumpTruthOnX/status/1950654905804279830
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Trump Says Pakistan Deal Done, South Korea Is Close
https://www.wsj.com/livecoverage/fed-meeting-interest-rate-decision...
The U.S. and Pakistan have concluded a trade pact, President Trump said Wednesday, adding that a deal could be close with South Korea.
Trump said on Truth Social that the U.S. has “concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” and is in the process of choosing a company to lead the partnership.
Trump also said he would meet with a South Korean delegation on Wednesday afternoon, who would bring an offer to “buy down” the 25% tariffs Trump has threatened to impose Aug. 1. Trump has previously pressed others to commit funds to build infrastructure and energy projects in the U.S., including the European Union and Japan.
Trump provided no further detail, but said "a full report" would be released "at the appropriate time."
Jul 30
Riaz Haq
Adeel Afzal
@AdeelAfzal06
Pakistan secures 4-year US approval to export seafood under NOAA’s Marine Mammal Protection Act. FY25 seafood exports already up 11.4% to $489m; compliance could lift earnings toward $600m.
A key boost for sustainable fisheries and global market access. 🐟🇵🇰
https://x.com/AdeelAfzal06/status/1961768830914494489
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China tariffs pave way for high seafood exports to US
Pakistan can tap full potential as Washington extends authorisation by 4 years
https://tribune.com.pk/story/2564228/china-tariffs-pave-way-for-hig...
China has lost the entire seafood market in the US following higher duties, market sources said, adding that Beijing was expected to shift its seafood market to Pakistan for exports to the US. Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced on Saturday that Pakistan has received authorisation that gave extension for the export of fish and fish-related products to the United States by another four years.
In a statement, the minister said that the decision reflects international recognition of the quality of Pakistan's seafood and would create long-term stability for the sector. "The extension is expected to bolster our position in the global seafood market by securing access to one of the world's largest seafood importers," he said. The federal minister explained that the United States National Oceanic and Atmospheric Administration (NOAA) has classified all Pakistani fisheries on its List of Foreign Fisheries as "comparable" under the Marine Mammal Protection Act (MMPA).
"This classification confirms that Pakistan's fisheries meet US standards for protecting marine mammals from incidental mortality and serious injury during fishing operations," he said.
The MMPA requires fisheries to minimise marine mammal by-catch, adopt conservation practices and take sustainable measures that also support healthier marine ecosystems.
Aug 31
Riaz Haq
Pakistan $100 billion maritime plan
https://www.arabnews.com/node/2621610/pakistan
KARACHI: Pakistan is implementing a $100 billion maritime development plan aimed at expanding its national shipping fleet, building new ship repair and recycling facilities, overhauling fisheries and upgrading maritime education, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said on Thursday.
Pakistan has a 1,046-km coastline along a major global trade route, but its maritime economy has remained underdeveloped for decades, with limited commercial fleet capacity, outdated port infrastructure and declining seafood exports. Successive governments have identified the blue economy as a potential driver of growth, energy security and climate resilience, but investment and execution have lagged.
“Under the Prime Minister’s guidance, the Ministry of Maritime Affairs is implementing the ‘Maritime @100’ vision, a $100 billion blue economy plan by 2047,” Chaudhry said at the closing ceremony of the flagship Pakistan International Maritime Exhibition and Conference (PIMEC) in Karachi.
“The sea is our next frontier for trade, prosperity, energy, food and climate resilience,” he said. “Pakistan’s future lies in the sea.”
As part of the plan, Pakistan’s first Green Ship Repair and Recycling Yard will be established at Port Qasim, one of the country’s main commercial ports near Karachi that already hosts major steel and industrial facilities. The project will be developed as part of an integrated “Sea to Steel Maritime Industrial Complex” designed to support the revival of Pakistan Steel Mills, the state-owned steelmaker that has remained largely non-operational for years.
Chaudhry said the Pakistan National Shipping Corporation (PNSC) fleet has increased from 10 to 12 ships, with three more expected within two months. Tenders for 12 additional vessels are underway, with the fleet targeted to reach 30 ships by 2026 and 60 within three years.
He said Pakistan had also granted its first private ferry operator license, opening sea routes for passenger movement and coastal trade.
On Gaddani, one of the world’s largest ship-breaking yards long criticized for unsafe conditions and environmental pollution, the minister said a Rs12 billion ($43 million) modernization program is underway to meet Hong Kong Convention safety and environmental standards, shifting toward cleaner and more regulated recycling capacity.
Chaudhry said the National Fisheries and Aquaculture Policy 2025–2035 has been finalized, targeting a doubling of seafood exports within one year through upgraded cold-chain logistics, traceability certification and deep-sea fishing capacity.
A Maritime Education Endowment Fund has also been created, and the Pakistan Marine Academy will be upgraded into a Maritime University to train seafarers, marine engineers, technologists and ocean science specialists.
The minister said the government’s century-long maritime strategy, termed “Maritime Century (2047–2147),” envisions developing new deep-sea ports, AI-enabled shipbuilding and recycling complexes, “Made-in-Pakistan” vessels and 100 percent green and digital ports with multimodal connectivity.
By 2047, Pakistan aimed to emerge as a global blue economy hub driving sustainable growth across the North Arabian Sea and Indian Ocean, the minister concluded.
6 hours ago