China-Pakistan Collaboration- A game changer for Blue Economy

Mahnoor Kaleem

Blue economy or Ocean economy, a term introduced by Gunter Pauli, refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, while preserving the health of ocean ecosystems. Pakistan has a strategic location along the Arabian Sea and a coastline of over 1,000 kilometers. Currently, Pakistan accounts for 1.5-3% OF GDP. Pakistan can significantly increase its GDP by focusing on the marine economy. This can be achieved through the collaboration of iron brothers.

Prime Minister Shehbaz Sharif declared the “blue economy” as Pakistan’s new economic frontier, calling for a unified national effort to develop the maritime sector.

China and Pakistan are working on the development of the Gwadar port. The first phase of construction at Gwadar port was completed in 2006 with Chinese investment of $198 million.  Under CPEC, China will expand the construction of Gwadar port. In 2015, the Chinese government converted all loans to zero percent interest loans. China also announced $230 million in grants for Gwadar International Airport. Initiatives like the fish processing industry and the automobile park are proposed. The government is also planning to integrate artificial intelligence in cargo handling.

There is also a goal to dedicate Gwadar as a mining hub. The government has also planned to complete M-8, ML-4, and the East Bay Expressway. Additionally, China has also signed an MoU to enhance cooperation in the fisheries sector. The CPEC project involves research in fisheries and shrimp production. China is the second largest market for Pakistan in oyster, crab, shrimp, and lobster. Gwadar is important for China as it gives access to the Indian Ocean and the Arabian Sea.

China can also establish a naval presence in the Indian Ocean. Gwadar port will provide an alternative trade route to China for trade purposes. Gwadar port also holds great importance for Pakistan as it can generate a huge amount of revenue through trade and tourism. Gwadar port has the potential to create ample job opportunities. Gwadar port can play a great role in the development of Balochistan, KPK, and FATA. Moreover, Gwadar port aims to connect Gwadar and the Xinjiang region. Gwadar port will act as a trade hub for Pakistan. It will enable Pakistan to explore the minerals of the Central Asian States.

Pakistan’s blue economy can boost GDP through maritime trade, fisheries, and industrial development at Gwadar.

Gwadar will attract a large number of foreign investors in Pakistan. Gwadar port cannot be declared fully operational because of security risks in Balochistan. The Balochistan Liberation Army attacked Gwadar port in 2024. Five people were killed in the attack, including one navy officer. Similar attacks were also carried out in 2019. High operational costs of Gwadar airport have made it less competitive.

Similarly, the administration has failed to sign agreements with shipping lines. Certain products cannot be shipped because of the 2022 Export Policy Order. China’s Xinjiang province relies on rails rather than ports. This reduces the trade efficiency of Gwadar. Moreover, China has announced deep-sea fishing. This initiative has sparked concerns from local fishermen.

The local community feels deprived of its rights. In conclusion, the blue economy has a lot of potential. This project can boost the revenue of Pakistan. Pakistan can emerge as a major trade partner. By increasing employment opportunities, the government can also address the grievances of local people.

Gwadar port strengthens China-Pakistan ties, offering economic opportunities and regional connectivity via CPEC.

China-Pakistan collaboration in the blue economy can play a role in the development of local communities. Meanwhile, Pakistan should address the security risks, high operational costs, and local people’s grievances. Pakistan should include local people in policy-making and governance. By handling these problems effectively, Gwadar can prove to be a game-changer for the Pakistani economy.

The author is a student of BS International Relations at Lahore College for Women University.