Article 1: Pakistan’s Blue Economy’s Potential and Prospects.

 Blue economy recognizes the seas and oceans as main drives for economic development
with great potential for growth.
 Pakistan: 1050 Km of coastline, 240 ,000 Sq. Km of exclusive economic zone. Ranked 74th in
coastline length in the world among the 142 coastal states.
 It has to do the following to yield the benefit;
o Integrated national Maritime policy – create awareness among decision makers and
general public
o Development of effective national compliance
o Renewal of this sector through international collaboration

The blue economy (factors of maritime power)

 The population growth has been multiplying so the world is facing problem to sustain the
economy and its subjects, so they are moving towards blue economy.
 History also shows that the great power always had control over sea routes and blue oceans
like British, Dutch, Romans
 But there are certain pre-requirements to emerge as a sea power;
o Geography
o Resources
o Strong maritime tradition and community
o Mindset and governance borne out of dependence on sea.
 Pakistan doesn’t have the last 2

Pakistan’s Maritime Sector

 Pakistan’s geography is a strategic advantage for her with landlocked countries (so Pak
handles their transit trade) on its south and the gulf (the oil rich countries) on its west.
 But it doesn’t have the proper infrastructure to exploit this edge
 It has 24th largest mangrove forest in the worlds of around 160 ,000 hectors
 Pak has natural harbours and abundant marine resources by sea has not been the priority
and as you saw manufacturing sector was the focus.
 This sector is imp for economy because 95% of the trade is done view sea and 100% of oil
and coal are imported through it which is essential for pak. But people are unaware of this
importance
 The GDP generated from the 95% of trade done view sea is 31% around $66.5 Billion. (in
2012-13)
 After 2008 the imports rose for about 7% each year. So Pak is capable of good growth if the
environment is correct.

Impediments and opportunity – this include all sectors in maritime domain

 SHIPPING: shipping is just a carrier service Pakistan also has international carrier companies
apart from Pakistan’s national carrier service they operate from pak ports and only way a
carrier fee.
 State owned National Shipping Corporation (NSC) formed in 1963 and had 71 vessels but
were reduced to 57 in 1971 after Bangladesh separation.
 In 1974 many companies were nationalised and made into PSC which later merged with NSC
and became PNSC the largest and only national shipping company.
 Around 99% of crude oil imports are handled by PNSC.
 But PNSC has reached its capacity and can’t fulfil the countries requirements. Most cargo in
pak is transported in containers and PNSC does not possess a single container vessel.
 But it has stayed profitable for more than 10 years but now in loses. As it only handles 7% of
the dry cargo trade.
 PNSC profits reduced sharply during 2008, Pakistan exports decline sharply.
 There is a great opportunity to invest in this sector as 92% of the global trade is through
oceans but even after a very liberal shipping policy in 2001 people did not invest. And who
did were not equip with the right skill sets, slump in this industry, no guarantee of cargo etc
 The sector was hot the most because of nationalisation as investments dropped.
 After 9/11 many have their ships register under Flag of convenience (FoC) it’s a good thing if
Pakistanis are employed
 This sector is a great source of foreign exchange earnings also attract allied industries to
established like shipping building and breaking
 PORT AND MARINE INFRATRUCTURE: Pak inherited the Karachi Port trust (KPT) which was
created in 1882 and was the only port in west pak Hence took most of the load which was
around 60% of nations cargo. It has 2 container terminal operated by private sectors
 Employees around 5000 people. Around 1700 ships visit the port.
 The biggest project was started here called the Pak Deep Water Containers Ports (PDWCP)
started in 2007 to increase the number of TEUs (twenty-foot equivalent unit) pak can
handle.
 Deep water ports are away from the berth and here the uploading and loading happens. And
then you create container village from that.
 Its completion was supposed to be 2014. It had 2 phases one building 4 berth to increase
capacity and no of TEUs it can handle and phase two was building port bridge and cargo
village. Still hasn’t completed
 Infrastructure is required for unlocking complete potential.
 Port Qasim is the second largest busiest port and handles the rest of 40% of the nation’s
cargo. Located in Phitti Creek
 It has the advantage to be closed to various national transport facilities like railway and
airport,
 Most of the jetties and terminals are privately owned and it also has the only private
petroleum terminal FOTCO is also located here.
 There are plans to build more terminals and a textile city to increase production and exports.
 The newly developed port is the Gawadar which is heavely invested by the Chinese. It’s a
deep-water port in the province of Baluchistan at the entrance of Persian Gulf. This can
provide a shot route to markets in the middle east and Europe.
 The Total cargo it can handle is 5 Million tons and only 145 ships have been called here since
2008.
 Issues of slow development; 1) poor connectivity and infrastructure 2) Socio political
situations 3) less private investment.
 The government announced an opening of another port in makran which hampered the
invested in gawadar. The makran port wasn’t completed.
 ----- All the ports need up-gradation and transports connection like rail routes, gawadar even
lacks road link to up country and Quetta even.
 SEAFARING: Pak can Provide a huge chunk of seafarers in the IMO (international maritime
organisation).
 The employed seafarers have declined a lot after 2001 9/11 incident. it was, and it can again
be a great source of remittance but pak faced visa problems after 2001.
 Pakistani seafarers come in the white list that is qualified as per international standard, as
they are better and competent but just don’t get accepted due to declined visa and clearing
process. This disable pak to benefit from the shortage of seafarers at international level.
 So, to overcome this the Ministry of ports and shipping be proactive to get them employed
in the major seafaring hubs like Greece. Ministry of foreign affairs should take set to fix the
delay in visa problem with a pre-screening process.
 Its expected that this sector can earn $0.5 billion per annum if the problems are fixed.
 SHIPBREAKING AND RECYCLYING: Pak has huge potential but only has 11% of the shares in
this sector. It is in Gadani and provides employment directly and indirectly to around
400,000 people. And more than 30000 direct employees
 Provide metal and tax revenue, this can help the province of Baluchistan earn more tax
revenue which it can employ in the developing areas like utilities facilities, infrastructure etc
and create more employment.
 Gadani’s output has been reduced by competitors who are cheaper that is Bangladesh and
India, who also dominate this industry with major shares.
 It has potential for growth and the government should employ taxation policies, so it can
contribute more in employment.
 To sustain this sector government can improve facilities like water supply electricity workers
training better living standards and environment protection.
 FISHING AND SEA FOOD INDUSTRY: it of one of the exported good and is worth $1.8 billion.
It employees more than 1.5 million person but only contributes to 1% of GDP as only 10% of
the total catch is exported. 30% locally consumed and 60% used to produce fish meals.
 Two important problems 1) bad fishing practises which reduce yield and increase waste 2)
poor quality because of poor post-harvest handling of fishes.
 The banned nets and unauthorised activities cause loss of breeds and threaten the
ecosystem and survival of some spices.
 The problem is because 1) lack of awareness 2) effective regulation 3) poor enforcement of
laws 4) smuggled catch is not recorded or reported. 5) huge cost because use of traditional
methods of catching hence low-cost producing countries benefit more. 6) problem of
pouching by Indian Leads to a loss of many tons of fishes.
 Aqua culture is dominant in area of Sindh and Baluchistan for fresh fish while salt water fish
is almost negligible. The sector of has great prospective for exports and alternative of
poverty if more awareness and support is provided. As is has a global market because of its
use in food production.
 SHIPBUILDING: Karachi shipyard and engineering works limited (KSEW) is the only shipyard
and it caters to ship building, repairing and general engineering requirement.
 It has heavy machines and facilities that can constructed vessels simultaneously.
 KSEW is government owned and was built for local and foreign customers in 1950s.
 It can build ships and submarines and is now mostly used for warship construction
 It doesn’t have the capacity to handle construction of repair most ships that come to our
ports but can be a major industry is improved and sea borne trade has been increasing. So,
pak needs to create investment opportunity for private and foreigner investors with proper
marketing strategy.
 OFFSHORE RESOURCES: Pak has 2 basins; the indus and makran. But a lot of its resources
are unexploited due to lack of investment to extract it.
  it has the 7th largest reserve of methane gas but it needs proper policies and regulation by
government to tap it.
 seaweed reserves can be found in pak which is used in food as well as medicines but
exploration and extracting equip is not available in Pak.
 Pak need proper environmental management to sustain these resources and not harm them
for the future generation
 COASTAL TOURISM: this is not present in Pakistan. If it were it could have sharply reduced
the poverty neat the coastal line and the areas around it. As tourism leads to increase in
living standards and development of all sorts aside from employment generation.

Policy framework.
 A. Growing environmental concerns: There are many threat to the Arabian sea and the
coastline ecosystem because of unchecked pollution climate change natural disaster sea
level rising etc. This is leading to depletion to Marine resources and fish production.
Maritime industry is being compelled to follow eco friendly rules.
 International regulatory framework: There are several international organisation around 52
of them which exist to regulate the maritime industry. They are concerned with safety of life
at sea, protection of ocean environment, ship design and so on. Pak is party of all-important
codes pertaining to maritime. Some of which are;
o MARPOL, regulates and prevents pollution from ship operations and deals with
discharge of waste
o Basel convention controls the trans boarder movement of hazardous waste on trans.
 Need for integrated national policy Pak only few maritime as a transport or port but it has
more than that. So, so a change of mind set is required and an understanding of issues an
economically sound maritime policies are required. The first set of policies wee made in
2002 and it needs to be updated. And in the 18th amendment it allowed provinces of make
policies under an integrated structure for the promotion of this sector.

Recommendation:
 Implementation of maritime policies
 Increased awareness and knowledge
 Building public private partnership
 Rational financing support with banking policies for loans – especially for aquaculture
 Renewal of the sector with international collaboration
 Enhancing infrastructure in ports
 Provincial government should take action to protect ecosystem of the coast and implement
and regulate policies to protect fish breeds and species

Article 2 Pakistan Shipbreaking Outlook

 Shipbreaking is the dismantling of vessels to recover steel and other materials. This took
place in developing countries, 2/3 of the world vessels come sot India Bangladesh & Pakistan
to be broken down.
 It’s a very hazardous industry both for workers and environment unless advance technology
is used, and proper waste management is done.
 The end-of-life-vessels have hazardous material in its parts and structure.
 Beaching is the method used that is dismantling the ship at the beach without proper
stricture to ensure containment of toxic waste.
 Large majority of ship owners who send their ship don’t meet the clean and safety
requirements and, in some case, do not even provide safety equip.
 South Asian countries are where these ships are brought because the law for environmental
protection and workers safety are not properly enforced or monitored. The other countries
in this sector are china turkey and EU countries. But 68% is south Asia
 The activities depend on economic factors on the global and national level, the main factor
still being global economy.
 The growth of this industry depends one growth in demand of steel which is the main scrap
that is recovered from dismantling ships. This steel is sold in local markets or exported.
 South Asia also has major portion because low cost labours.
 The growth of this sector is because owners want to modernize their fleet so the old one
needs to break down, phasing out of single hull oil tankers, some owners facing overcapacity
of ships because of sea trade boom, etc
 This industry started in Pakistan in 1947 before independence at gadani coast. The sandy
beach and deep-water level allowed beaching of vessels.
 During 1970s and 80s was most active employed around 30000 people directly and was
largest in the world. After introducing high taxes under Nawaz, it lost competitiveness
 In 2012 it saw its peak and had 5 billion Pak rupee taxes of which 30% went to provincial
government.
 The industry play imp role in reducing burden of importing steel for iron industry. Which
contributes to GDP and creates employment for Baloch
 The largest exporters among the EU companies are Greek and British
 Most ships change there flags when they arrive in the coast to be broken down, also Gadani
received older vessels which are risker to dismantle and are often built when the use of
some hazardous material weren’t banned.

Legal framework
 Basel convention: The united nations Environmental Program (UNEP) adopted this which is
for the control of transboundary movement of hazardous wastes and disposal in 1992.
 It combines concept of protection human health and environment against danger. It is
ratified by 180 countries.
 It has 2 things 1) PIC procedure which is prior informed consent 2) Environmentally sound
management ESM.
 The south Asian importing countries parties of Basel convention do not comply with their
ESM obligation and PIC is seldomly followed.
 Hong Kong convention: The international maritime organisation IMO developed this in a
conference in Hong Kong in 2009. None of the south Asian have signed or agreed to this
convention (2013).
 It has some elements from Basel convention and has requirement for the ships and their
recycling facilities. It also covers worker safety training and protection of health and
environment.
 ILO recommendations: International Labour organisation (ilo) calls this sector the most
dangerous occupation. It gives a framework for the responsibility of employer workers and
regulatory authorities in this sector.
 Pak has neither ratified the occupation safety and health convention nor the convention on
promotional framework for occupational safety and health.
 Eu regulation: It gives a set number of requirement for the facilities that are willing to
recycle European ships, and these are stricter than the Hong Kong convention and beaching
does not meet them.
 Legal framework of Pakistan: the status of this industry s unclear with any specify
regulation. Just has a mandatory custom check
 The constitution guarantees fundamental rights and for the hazardous waste there is
Hazardous substance rule 2003 under the pak environmental protection ac PEPA 1997
 No law covers the occupational health and safety at workplace.
 Pakistan is member of ILO but hasn’t signed the convention on the safety and health at
work.
 It suffers from weak enforcement and lack of compliance monitoring system.
 The contractual nature of jobs and no direct relationship with employers undermines their
employment fundamental labour rights.
Features and procedures
 So 80% of plots were of landlords while 30% of Baluchistan development authority BDA.
38/68 were operational in the study.
 It takes an avg of 90 to dismantle a ship and the materials recovered are steal, other metals
and materials such as wood.
 Infrastructure is poor, electricity cuts are normal these lead to delay and limit productivity
and even pose a risk on workers security as they work in the dark. Government does not use
the taxes generated to improve conditions.
 There is no impermeable flooring to drain spills and liquid, oil residues from beach ships
were resold as fuel. Small oil spills occur sometimes. The sewage was not being treated.
 Provision for sound management of hazardous wastes like asbestos and heavy metal non-
existent. There was a general lack of awareness with regard for environmental hazard. The
wastes were dumped or buried, and location were not marked.
 Only male workers with short contract were hired which wasn’t even written. Most came
from KPK, Punjab and Baluchistan only a few from Sindh. They were illiterate with only a few
with secondary education.
 They travelled home or lived in the own housing arrangement with poor sanitation and no
public supply of safe drinking water.
 Families received Compensation in case of death which was up to 300, 000. In case of major
injury free treatment or paid leave were given
 Some personal protective equipment (PPE) were given sometimes but the use was not
enforced. There were doctors and free check up at emergencies but only one ambulance at
yard.
Recommendations
 The Ship owners need to ensure the ships are pre-cleaned. And demand clean and safe
recycling.
 The government should take advice from international institution and partner with them to
finance infrastructure.
 The new regulation set criteria for the facilities and how they should operate. And these
should be in line with all the convention and ILO guidelines and take action for other
standards like ISO 30000
 The green ship recycling strategy to be implemented. Which has rules for works right, proper
disposal of hazardous waste. It’s a cross departmental policy to formalize the sector and ro
 allow fir needed transition towards clean and safe ship recycling compliant with
international law and guidance.
 Training and rising awareness
 Etc. I AM SOOOOO TIREDDD RNNNNN! I am sure we don’t need to learn all this shit but yes
enjoy.

Class f notes
The F is not a typo hehe not really, I wanna scream. Khair!
Also, just adding stuff not in article but in my notes. Everything in curves are the questions he asked

 What is black economy? Undocumented and unregulated economy which is not included in
the GDP. In Pakistan is around US $ 160 B in size.
 These economies exist everywhere and the important role it plays is that it absorbs inflation
in the economy.
 In undocumented and untaxed countries hence, the rate of interest is high but base is
narrow while opposite for documented a& developed countries.
 This happened because the supply chain in the middle is unregulated untaxed and
undocumented, so the output’s terminal value is less so more tax rate as to be applied as
the base number of chains that are taxes is narrow.
 What is blue economy? Is Maritime economy
 Marine is directly pertaining to sea trade sea routes involving water. While Maritime
included some industries factories and backwards and forward linkages of some other
industries which doesn’t directly have anything to do with sea water like ship breaking, aqua
marine, sea food
 There is economic zone on sea which creates sea born trade including marine or non-marine
all export output is transported through this. 9the external sector relies heavily on seas
routes and shipping. Only 5% of external sector output is carried through air carrier.
 Pak has land lock countries in the north as central Asia is land locked, the sea above Russia is
frozen all year this sea is connected to south china sea which is not frozen and it’s the world
oldest maritime sea route but there is an ownership conflict which hasn’t been resolved
hence can’t be used.
 Pak geography is ideal.
 There is a UN resolution that protocol states that the landlocked countries can use their
immediate neighbours port and the neighbour cant not deny this right hence Afghanistan’s
trade is conducted from Pakistan’s port. There is no tax but there is an agreed upon transit
fee that Pakistan earn.
 The most important part is the Chine started CPEC because the western side is locked and
after CPEC chines sea born trade time of 45 days will reduce to 5 days.
 PNSC decreased after the great recession of 2008. Pakistan exports were hit harshly.
 There is no integrated maritime trade policy in Pakistan so the policy that it has now is
incremental over time. We added things over time.
 Port Qasim is not connected to the rest of the country so it has the biggest problem of
workers as they have to travel so much to get here as there are no housing facilities close by
 Shrimp and Lobster are the most imp sea food which are exported mostly.
 Till 1970s fishreis didn’t had so much important and it increased sharply around 2004
 Under GSP plus European markets has access to Pakistan’s sea food. But SPSS qualitative
standards are very high and strict. The process and compliance cost is high and the input for
these processes are imported not found in Pakistan.