'PIMEC' first maritime expo organised by Pak Navy

The maritime sector is the lifeblood of Pakistan's economy as more than 90 percent of our trade is carried out by sea.

We have significant potential in the maritime sector and our economic potential is linked to the maritime sector. However, there is a need for more awareness in this regard at the national level. Being a key stakeholder, Pakistan Navy is creating a new dimension in maritime affairs across the country to create the necessary awareness to harness the untapped potential of our blue economy.

Pakistan Navy is going to host the “Pakistan International Maritime Expo and Conference” (PIMEC) under the auspices of the Ministry of Maritime Affairs to support the efforts to promote the Blue Economy along with the Peace Series of Pakistan Navy.

The Blue Economy seeks to raise the standard of living of the people by ensuring economic growth, social inclusion, and sustainable development. This includes the offshore industries of hydrocarbon extraction, seabed mining, marine biotechnology, fishing and marine tourism, as well as emerging industries including offshore renewable energy, shipbuilding and ship repair, and aquaculture. Coastal development, shipping and port infrastructure are also implicit in the Blue Economy concept.

Global economists have estimated the blue economy at $24 trillion and so far it is generating profits of between $500-600 billion per year. However, one of the key challenges of the Blue Economy is to understand and better manage the many aspects of marine affairs. This includes fisheries, ecosystem survival and pollution remediation.

Naturally, Pakistan is blessed with a 1,000 km long coastline and 290,000 sq km of Exclusive Economic Zone (EEZ) plus a continental shelf that is larger than the combined area of ​​Punjab and KPK. Pakistan's maritime sector is financially and technologically strong and requires substantial investment to build, operate and make it economically viable. Its current maritime revenue is estimated at $183 million which is far behind our neighbouring countries including India and Bangladesh which are estimated at $5.6 billion and $6 billion respectively.

Pakistan's coastal areas are rich in biological production and biodiversity as they provide extensive breeding grounds for commercially important fisheries, including shrimp and crab, valued at over $2 billion annually.

About 40,000 Pakistani citizens are directly or indirectly involved in the fishing industry, which provides a large workforce for the exploitation of these resources. Despite the vast potential for fish export, Pakistan's fisheries sector contributes only 0.4% to the country's GDP. This once again indicates how little progress we are making in this area despite the enormous potential and as a result our prospects for future growth are affected.

Pakistan's shipbreaking industry i.e. Gudani was one of the largest shipbreaking industries in the world in the 1970s but now it ranks third after India and Bangladesh. This industry, if revived and utilised to its full potential, has the potential to contribute more than $10 million to the annual GDP. Another very important industry that can be profitable with intensive use is coastal tourism.

Tourists from all over the world are attracted to the beautiful destinations especially the sea coast with its rich biodiversity and picturesque beaches. Coastal tourism in Pakistan contributes only $0.3 billion despite having a potential of $4 billion. Another problem for Pakistan is our ranking on the “Travel and Tourism Competitiveness Report” published by the World Economic Forum, in which Pakistan is ranked 121 out of 140 countries. It is the least competitive country in South Asia.

CPEC has given us an opportunity to start working on the maritime sector. The economy around Gwadar Port plays a vital role and it is high time that we as a nation and policy makers pay special attention to it. Gwadar can play an important role in transforming Pakistan's economy only through transshipment. History proves that shipping is the cheapest mode of transportation.

Today, 80% of global trade volume is carried by sea, amounting to about 10 billion tonnes. Pakistan can play a very important role in this field which can help in managing its broken economy. An encouraging aspect for Pakistan is the High Liner Shipping Connectivity Index (LSCI). LSCI provides awareness of how well connected ships and ports are around the world.

Pakistan stands at 34.06 points which is a healthy number and better than Bangladesh, though behind India which is close to 54. China leads the race with an index of 151.91. Pakistan should take advantage of these opportunities and expand its operations while developing its transshipment industry. As ships have to cover extra distance to reach the Gulf countries from the Indian Ocean, Gwadar has the potential to be developed as a complete regional hub and transshipment port in the future.

Ship traffic from Dubai to Gwadar can be included among the top 5 transshipment hubs globally. The UAE handles 21mn TEUs (20 tonne equivalent units) per year. This indicates the opportunity that exists for Gwadar. Being a tax free port, this port is not too crowded. Gwadar can take advantage of these opportunities for profit once the construction is complete.

Due to various reasons, the true potential of the blue economy has not been fully utilised till date. Lack of maritime awareness is the biggest obstacle in the development of the country's maritime sector. To bridge this gap Pakistan Navy is going to host PIMEC for the first time under the auspices of the Ministry of Maritime Affairs to bring stakeholders and diverse maritime industries together on one platform and explore opportunities for joint ventures and investments. can

A large number of people from trade and industry, including foreign experts, will participate. This is the first event of its kind in Pakistan. In this regard, various international exhibitions were reviewed and accessed. Some of the major international events analysed include China Maritime Economy Expo, Myanmar Marine Expo, Asia Pacific Maritime (Singapore) and Euro Maritime Expo (France).

Initiating this process, the soft launch of the PIMEC series is going to be held on July 26 in Islamabad and PIMEC will be held regularly alongside Pakistan Navy's series of multinational exercises from next year. The event will help the maritime industry in a forum to showcase products and provide opportunities to interact directly with its international competitors.

Additionally, PIMEC will provide impetus to Pakistan's maritime and defence industries to establish joint ventures with international maritime and defence manufacturers. This will further highlight the country's maritime capability and boost its image as a maritime nation playing a role in peace and stability.