ICZM Framework for Gwadar

Implementation of ICZM Framework for the Gwadar Port City

Dania Amjad, Maha Zainab Saeed

Department of Economics, Lahore University of Management Sciences
ECON4416: Advanced Urban Economics
Dr. Syed Muhammad Hasan
19th December, 2021
ICZM Framework for Gwadar

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Contents
Introduction —---------------------------------------------------------------------------------------- 3
Literature Review —--------------------------------------------------------------------------------- 5
Data and Methodology —--------------------------------------------------------------------------- 6
Infrastructure —----------------------------------------------------------------------------- 6
Economic Development —----------------------------------------------------------------
Education —---------------------------------------------------------------------------------
Housing —-----------------------------------------------------------------------------------
Results and Findings —-----------------------------------------------------------------------------
Primary Research —------------------------------------------------------------------------
Secondary Research —---------------------------------------------------------------------
Impact of ICZM - Case Study of the United Kingdom —-----------------------------
Discussion of Results —-----------------------------------------------------------------------------
Policy Recommendations —------------------------------------------------------------------------
Urban Planning —---------------------------------------------------------------------------
Commercial —-------------------------------------------------------------------------------
Institutional —-------------------------------------------------------------------------------
Local Inclusivity —-------------------------------------------------------------------------
Conclusion —-----------------------------------------------------------------------------------------
Limitations —-----------------------------------------------------------------------------------------
References —------------------------------------------------------------------------------------------
ICZM Framework for Gwadar

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Introduction
The port of Gwadar would act as the international trade hub for Pakistan as it connects
with three regions, i.e., Central Asia, Middle East, and South Asia. As Asia consists of
landlocked countries, Gwadar would generate massive revenue for Pakistan and the South Asian
region. It is predicted to increase the GDP by $30 billion and produce 1.2 million jobs by
2050(Verma,2020). CPEC has focused on infrastructure, urban planning, and inclusivity to
achieve its economic potential through initiatives like "One Belt One Road."
Despite the initiatives, the developments have been slow-paced due to various factors.
Firstly, there are problems with the implementation of urban planning. The urban land use is not
up to the mark. The Gwadar port is not connected to Pakistan's National Road Network, and
there is no practical zoning framework. The research question we want to explore is, "How
would the Integrated Coastal Zoning Management (ICZM) implementation help CPEC achieve a
sustainable development of the Gwadar port?".
For any initiative to be successful, it needs to involve the idea of 'local inclusivity.' The
locals - primarily fishermen and traders - have not been included in the decision-making
processes as the contracts are allocated to citizens of Karachi and Lahore, which has caused
mistrust and resentment as their interests and identities are not protected. The Provincial
Government of Balochistan has been incensed by the lack of consultation. Furthermore, there is
insufficient knowledge and data for planning and management processes.
Urban Planning is a concept that needs to be more carefully employed for the port city to
reach its economic potential. In a poorly planned area, the residents are bound to face traffic
congestion, underdeveloped infrastructure, lack of job opportunities, and are vulnerable to severe
climate change.Successful urban planning includes conducting a census, ensuring ecological
sustainability, preparing for population growth, and providing affordable housing. Urban
planning influences our transport system, infrastructure, layout, prescribed densities of areas and
hence, cannot be taken for granted as it guides orderly development.
One major factor for the failure of the Zoning method we will discuss below was the lack
of planning, and hence it is imperative to highlight the importance of urban planning.
ICZM Framework for Gwadar

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Our research paper discusses the Integrated Coastal Zoning Management (ICZM) for allocating
this coastal space for economically sustainable and socially acceptable development. Although
this framework has proved successful in countries like Dubai, Germany, and England, CPEC has
not yet employed it. The current frame of ICZM in Pakistan is that there is little research on
implementing ICZM in Gwadar. This paper would incorporate the strategies of ICZM devised by
other countries to achieve the maximum economic potential of Gwadar.
After proving positive results in the US in 1972, many countries follow-suit and
implemented the ICZM framework. It aims to sustain coastal resources and advocate sustainable
growth by implementing sufficient land use planning within an institutional, social, and
economic context. 'Integrated' in ICZM refers to "integration of all relevant policy sectors, and
levels of integration, administration and of the terrestrial and marine components in both time
and space." The reason for the development of the ICZM was the impact of poor employment,
increasing levels of pollution, the effects of fishing, and many other environmental concerns.
There has been massive degradation of the coastal environment in the past decade. Longshore
currents, power plants, and industrialization have negatively altered the geomorphology of the
coast.
For there to be progress, there needs to be an investment from both the private and public
sectors. These need to be used to support development activities around Gwadar and Pasni. The
ICZM plan should link at three levels in the government: local, central, and provincial
government. The significant responsibility will be with the federal government; however, a new
interministerial coastal council will increase coordination and accountability. This ministry will
be solely responsible for performing the functions of devising national-level strategies for
implementing the ICZM.
The motivation behind adopting the ICZM is land use planning for a balanced use
between the environment and coastal space and resource utilization as a national asset.
Specifically, our research would answer the following question: How would the Integrated
Coastal Zoning Management (ICZM) implementation help CPEC achieve the maximum
economic potential of the Gwadar port?
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As CPEC has not employed the ICZM framework in Gwadar and there has not been
research on this area, this paper delves into the implementation of the ICZM framework in
Gwadar. This paper uses primary (interviews, surveys) and secondary data sources to explore
recommendations for amendments in the 'CPEC' framework. The main focus is in employing the
'integrated Coastal Zoning Management' framework and allowing sustainable development in
Gwadar while taking local inclusivity and sustainable development into account.

Literature Review
The need for ICZM arises due to the requirement of coastal boundaries in Pakistan. There are no
proper coastal boundaries in Pakistan, and these can be defined in four ways: fixed distance,
variable distance, definition according to use, hybrid report (Zafar Ullah,2016).ICZM needs to
align with legislation and authorities for substantial development. This will include the
participation of different government levels (i.e., federal, provincial, and local). Another key
important feature of this framework is 'decentralization.' Credible policy needs to be made part of
the implementation process with a step-by-step approach to allocating land. This also includes
the 'green shipping strategy' and subzone planning, allowing an integrated course in Pakistan.
The existing framework has many subsets and aligns with National Environmental
Quality Standards (Riaz,2019).This requires coordination between government agencies in Sindh
and Balochistan.IUCN has begun the replantation with the local communities along the coast of
Pakistan for Coastal habitat restoration and protection to be encouraged. This will lead to
positive impacts on the mud stabilization, restore the productivity of degraded intertidal zones
and contribute to tree buildup. It will also generate employment opportunities and increase the
local population's income. The article also discusses how fish processing plants are required to
create income-generating opportunities for locals. It highlights the idea of the local communities
feeling threatened due to increased erosion, lack of sewerage management, and severe
deforestation. Reformation should include water treatment plants for more efficient sewerage
management to reduce water pollution. It is also imperative to rehabilitate the Mangrove forests
to mitigate coastal erosion.
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The Intergovernmental Oceanographic Commission conducted an international workshop
on Integrated Coastal Zone Management (ICZM). ICZM implements zoning & a 5-year plan. It
ensures sustainable development and resources appreciate and minimize degradation. The idea
that it involves the interests of the various financial sectors that are stakeholders in coastal
resources is why the critical term" integrated" is coined. This consists of the ocean and terrestrial
domains and procedures established to conserve coastal resources through development. The
integrated approach encompasses shipping, housing, manufacturing, fisheries, agriculture,
electric power, infrastructure, and tourism.
Data and Methodology
In addition to our primary research, we employed various datasets and information
sources for our preliminary results. For in-depth analysis, we have compared the data with
different years as CPEC was established in 2013. The sources include the following:
● "District Development Profile" by UNICEF for the year 2015
● "District Economic Development Profile" by SMEDA for the year 2020-21
● "Profile of District Gwadar" by SAP-PK for the year 2017-18
● "Socio-Economic Costs & Benefits of ICZM" by European Commission for the year
2000
● Census by The Pakistan Bureau of Statistics for the year 2017
● "Infrastructure Development of Balochistan" by World Bank for the year 2009
Infrastructure
We compared the kilometers of the metalled roads and shingle roads. We also analyzed
the telecommunication usage by comparing the number of telephones in 2009 with 2015 using
"District Development Profile" and "Infrastructure Development of Balochistan." This provided
us with information on the development of infrastructure after CPEC.
Economic Development
We used GNI per capita instead of GDP since it also includes employee compensation
and investment income. We want to focus on the local community's income to determine the
economic effects of development in Gwadar for the locals by comparing the values mentioned in
ICZM Framework for Gwadar

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the "District Economic Development Profile" and "Profile of District Gwadar" for 2020 and
2017, respectively.
Education
To determine the level of local inclusivity, we have used the level of education as the
proxy variable. The Gwadar district census data of 2017 provided education levels, for example,
primary, matric, and degree qualification for all genders separately. Using STATA, we
constructed new variables to determine the percentage of the population who have received
different education levels.
Housing
Like education, we also included the number of houses and the number of people in
homes as a proxy variable in determining the local inclusivity, through the data available on the
Pakistan Bureau of Statistics of the year 2017 and the mentioned figures in the "District
Development Economic Profile" for the year 2021.
Furthermore, we contacted the Rural Community Development Council of Gwadar on
behalf of Dr. Naveed for the primary research and conducted seven interviews with the locals.
Four belonged to Pasni, and the other three were from Jiwani and Sonmiani. The interview was a
significant part of our primary resource since we were able to ask follow-up questions from our
interviewees for in-depth analysis. The questions pertained to local inclusivity, occupation,
income per month, Gwadar development, and land ownership. This also helped us construct
questions for our survey which related to Gwadar port development, such as "Were you or
anyone you know consulted during the development projects?", "Do you think the high illiteracy
rate of Gwadar is one of the reasons for the undeveloped port?", "On a scale of 1 to 5, do you
feel a threat to your identity due to foreign projects?", "On a scale of 1-5 how strongly do you
feel that Gwadar Port is not being used to its maximum potential?", "On a scale of 1 to 5, how
strongly do you feel that your livelihood has been affected by poor infrastructural facilities",
"How much more focus needs to be on the sustainable development of the port" etc.
Moreover, our project has a mixture of qualitative and quantitative research methods.
However, we have focused more on the former due to the nature of our project. Other essential
ICZM Framework for Gwadar

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research methodologies to determine urban land use and zoning issues include the comparison of
the Master Plan Gwadar 2050 with the ICZM framework. Furthermore, we also analyzed
countries such as the UK, the US, and Germany, which have already implemented the ICZM
framework to analyze the impacts of this particular framework on Gwadar.

Results and Findings

Primary Research:
Our research employed a 'survey' approach to conducting our primary analysis since
quantitative data provides a good cross-section of the population and aids in making valid
generalizations. We performed 7 interviews and collected 26 surveys from the University of
Turbat and the NUML Gwadar Campus students. The response time was around 7 to 8 days.
According to our research conducted with the aid of RCDC, around the majority of our samples'
answers,when analyzed, verified the idea that they believed there is a dire need for a new
framework to be implemented that takes several factors such as local inclusivity, sustainability,
and environmental care into account. The interviews we conducted were our second source of
primary research. The range of the monthly salaries of our interviewees ranged from Rs. 20,000
to Rs. 42,000. It is important to note that the citizens of Pasni, which has the largest fishing
harbor in Gwadar, had the lowest income.
Furthermore, their sources of livelihood included wages, livestock, fishery, and crop
production, with the last two being the dominant sources. To promote local inclusivity, we
questioned them about the development in Gwadar, and the answers highlighted the issue of
local inclusivity. None of our interviewees were consulted during the Gwadar development
projects. They were unaware of the projects being undertaken in Gwadar as the developed land
was not accessible and was covered with only Chinese people permitted to enter the restricted
zones. These restrictions also made them feel "threatened" since they stated that the Chinese
decision-makers were overtaking their identity and roots.
The pie charts and bar graphs below represent the results and findings of our research. In
context to the sample, all of them agreed that the government did not consult them during the
ICZM Framework for Gwadar

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development of the projects. There was a majority agreement that one major factor in
underdevelopment is illiteracy, and foreign projects can potentially also threaten the local
identity. Hence, their inclusivity needs to be a top priority. More than 50% of the sample
identified that lack of infrastructural facilities had influenced their livelihood and the Gwadar
port has to achieve its maximum potential.

Figure 1

As shown in Figure 1 the red circle

represents that none of the 26
responses were consulted during any
project development. This is
represented by the red circle and
highlights the dire need of
highlighting the lack of local
inclusivity and incorporating them in
project planning or implementation. The locals are the city's heart, and ignorance towards them is
not a sustainable or healthy way of leading to progress.

Figure 2
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Furthermore, as represented in Figure 2, 88.5% of the sample believed that illiteracy is a major
factor for the underdevelopment of the Gwadar port.

The figures below represent bar graphs, highlighting the distribution of responses when
questioned regarding the utilization of Gwadar Port for its maximum potential. 65.4% of the
sample believed that the port is not being utilized to its maximum potential and rated this on a
scale of a solid agreement by choosing number 5. Similarly, in figure 4. 53.8% very strongly and
30.8 % strongly believed their livelihood had been affected by poor infrastructural
facilities(roads, communication, etc.).

Figure 3 Figure 4

Secondary Research
The table below depicts the progress in the mentioned variables. As CPEC was established in
2013, we have chosen the years after 2013 for better analysis. The growth rate per year is
negligible except for the metalled roads.
Table 1

Variables Before After Growth Rate

Illiteracy 77.9% (2017) 75.5% (2020) 0.8%

Infrastructure 134 km (2009) 219 km (2015) 10.5%

ICZM Framework for Gwadar

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(Metaled Roads)

Infrastructure 934 km (2009) 934 km (2015) 0%

(Shingle Roads)

Infrastructure 1693 telephones 1897 telephones 2%

(Telecommunication) (2009) (2015)

Housing 39194 (2017) 39922 (2021) 0.464%

GNI per capita in 7990 (2012) 8404 (2021) 0.58%

1000s ($)

Using the Pakistan Bureau of Statistics data, we analyzed the new variables created for
each education level and found out that only 7% of the Gwadar population had a degree
qualification. This dangerously low percentage shows that the locals do not have the expertise to
devise strategies for the development of Gwadar. For the other proxy variable of local
inclusivity, we summed up the number of households in each tehsil and calculated the average
number of people in homes. The result showed that approximately seven people live under one
roof, with 42% of the households having ten or more people.
Impact of ICZM - Case Study of the United Kingdom
Furthermore, to evaluate the benefits of ICZM on a coastal area, we have analyzed the
UK since it has incorporated this framework since 2000. The survey conducted by the European
Commission in the year 2000 is divided into two parts: qualitative and quantitative benefits of
ICZM. The survey respondents were managers of 39 ICZM initiatives who described that the
decision-making improved by 84.6%, and about 66.7% reported coherence in spatial planning.
The quality of life of the locals also increased by 46.1%. Overall, the qualitative benefits
increased by 55.1% after implementing the ICZM framework in the UK.
Table 2
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Similarly, the quantitative benefits are depicted in Table 3. Since the UK already had a
boosting tourism industry, we believe that the increase in tourism in Gwadar would be more
significant than the tourism growth as witnessed in the UK. Since tourism is a crucial part of the
future economic growth in Gwadar, a boost in this sector would increase the GDP of not only
Pakistan but other landlocked Asian countries. This survey also showed that 10% of local
economic stakeholders and 10% of coastal tourism actors benefited. The financial benefit of
ICZM was estimated to be 883.4 million Euros from the annual growth of the biomes, industry,
and tourism sectors.
Table 3

Discussion of Results
From the results, it is evident that the progress towards a developed district has been
negligible.
ICZM Framework for Gwadar

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Figure 5

Figure 6
As shown in the Gwadar Master Plan (Figure 5), the yellow labels mark the residential
land, and it is mainly located right in front of the coast. Moreover, the Central Business District
(CBD) (Figure 6) is located near the coastal space. However, like Dubai's Palm Jumeirah, these
reclaimed lands would be prone to natural disasters such as earthquakes. Due to prolonged
shaking in these high population density areas near the coast, the process of "liquefaction"
initiates, which causes earthquakes. The construction of CBD near
the beach would also rapidly increase pollution, similar to the current
situation in Lahore. No proper planning can cause further
depletion of natural resources. These environmental factors would
reduce the number of people living near the port as amenities
lowered, resulting in high-income households moving away from
the City Business District.
Furthermore, Pakistan has a highly centralized government
structure, even after the 18th amendment. Currently, local
inclusivity is at a minimal level. Nasir from the Rural Development Community Council
informed us that the 90% of the Gwadar Development contracts were dealt by Lahore and
Karachi. At the same time, the local population and the local stakeholders had no role in
developing the port city. Moreover, as the survey results depict, the government has been
unresponsive to the local community's needs, which has caused resentment and distrust.
ICZM Framework for Gwadar

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However, the low education level as described in the PBS district-level data suggests that
there is a lack of awareness about how the issues of Gwadar are integrated, resulting in
mismanagement in resources and development strategies. Our interviewee from Jiwani stated
that due to no local inclusivity and only government regulation, he has felt "out of touch with his
environment," which has led to distrust and resentment towards the authorities. He further
highlighted how the government is unaware of the problems of locals, and most of the time, their
community can solve those problems through exchanging ideas, commonly known as
'knowledge spillover'. Access and quality of education both are necessary to form the basis of
knowledge provision and this is the key to development. This was the main idea supported by the
majority of the locals as well.
Similarly, poor infrastructural facilities have resulted in an underdeveloped fishing
industry in Gwadar. Two of our interviewees from Jiwani and Sonmiani discussed how the two
small harbors consist of 50 fishing boats that have been poorly constructed. As fishery is the
primary source of living, they suffered financially. Furthermore, as these fishing areas are not
connected to the significant market in Karachi, the transportation costs are sky-high, making this
area economically inviable.
Moreover, one of the main benefits of ICZM is its relatively lower cost. It is estimated
that the CPEC will have a budget of $62 billion in 2021. As mentioned in the results, the ICZM
would cost $11 million. In contrast, the existing initiatives are almost ten times more expensive,
with One Belt One Road and Gwadar Eastbay Expressway costing $47 billion and $6.6 billion,
respectively. For a developing country like Pakistan, which is burdened with international loans,
this would help boost the economy through the development of Gwadar Port with a minimal
budget.
Policy Recommendations
For simplification, we have divided the ICZM framework into four categories: urban
planning, institution, commercial, and local inclusivity.
Urban Planning
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After analyzing the ICZM framework implemented in the US, UK, Germany, and UAE,
Gwadar should be divided into four zones:
● Zone 1
These would include the ecologically sensitive areas that protect the coastal ecosystem,
i.e., the spaces between high and low tides, such as the mangroves, coral reefs or marine
parks, and natural beauty. The development and construction activities in this area would
be regulated by the Federal Government, Pakistan Environmental Protection Agency.
● Zone 2
These would include the already developed areas near the coastline. These areas in the
legally designated urban areas would have evolved to a large extent, i.e., proper drainage,
roads, infrastructure, etc. The development and construction would be regulated by the
Gwadar Development Authority and Balochistan Coastal Development Authority.
● Zone 3
These are the relatively peaceful rural and urban settlements where only restricted
agricultural and public activities are permitted. Unlike Zone 2, it is an area that is
relatively undeveloped.
● Zone 4
These areas would be within the aquatic zone, including fishing and other related
activities; however, solid waste would not be allowed.
Figure 7
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As shown in the Figure 7, Gwadar
Development Authority should construct
the urban areas and settlements away from
the beach, and Balochistan Environmental
Protection Agency should protect the
environmentally sensitive areas such as
mangrove forests and marine reserves.
They should develop green buffer areas
between the urban front and the port to
allow the ports and residents to coexist simultaneously. These land-use planning techniques
would diminish the unfavorable effects on the physical environment of industries near docks,
resulting in more residents and tourists.
Institution
Furthermore, the institutional framework has to change to implement ICZM. Due to the
regulations in Pakistan, it is difficult for local and federal organizations to merge. Therefore, the
Ministry of Planning, Development & Special Initiative should implement ICZM recommended
policies at the national level. This entity should have experts of the ICZM framework responsible
for coordinating the policies with those ministries and organizations affected by the amendments.
At the local level, Gwadar Development Authority (GDA) would be the main body with experts
in planning, public participation, administrative tasks, and coordinating with private parties. The
ICZM framework suggests a horizontal integration of all of the entities involved for maximum
representation. Gwadar Development Authority (GDA) would act as a coordinating office for
smooth management and communication.
Commercial
The ICZM framework can turn the city of Gwadar into a tourism hub like Dubai. There
should be particular areas allocated for tourism known as "Commercial Tourism Sites" located in
Zone 2 and Zone 3 as they would be the urban centers of Gwadar. These would include resorts,
plazas, and scenic beauties since Gwadar has numerous islands. The Ministry of Tourism and
ICZM Framework for Gwadar

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Culture would be in charge irrespective of ownership and control for the development of
commercial activities and business growth. Therefore, a law has to be passed to separate
ownership and control. Moreover, the national assembly should pass a law to implement foreign
tourists' rights to protect the tourists.
As noted above, the fishermen have suffered financially due to damaged boats, therefore,
there should be a boat-building yard near the fishing settlements for construction and repairing
fiberglass in Zone 4, which involves fishing activities. Moreover, there is an absolute need for
infrastructure with focus on motorways, highways and shingle roads.
Local Inclusivity
Including fishermen's cooperatives has been effective in Barbados and Guyana for ICZM
development strategies. Therefore, the "Fisherfolk Forum" of Gwadar should be given the
authority of resource management, which would also allow the fishermen to apply traditional
uses and instill a sense of ownership. Similarly, education should be a top priority of the Ministry
of Education and Professional Training which would allow knowledge spillovers. Public
participation should be promoted through public hearings, comment, nomination procedures etc.
Table 4 below summarizes these suggestions.
Table 4
Conclusion
In conclusion, there has been poor development even after several initiatives and
sufficient budget allocation. The existing frameworks have led to progress but, as explained, not
to the maximum potential. After detailed analysis, we can conclude that the ICZM has had a
positive and substantial impact on economic growth wherever implemented. Most importantly,
coupled with improved finances, ICZM advocates sustainable development. It provides a holistic
framework for the coastal region by considering local inclusivity, environment, economic
growth, and infrastructure development.
Limitations
However, there are certain limitations of our research and the adaptation of the ICZM
framework that need to be considered. Quantitative data is always the key to making valid
ICZM Framework for Gwadar

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generalizations. They provide a good cross-section of the population; however, little quantitative
data is available to implement the ICZM. The sample size is limited to several students from two
universities in Gwadar, which is a very limited population stratum. Furthermore, during the
tenure of our research, we realized that there were a limited number of interviews that we could
conduct; hence, they are not representative of the whole population. Such sample size restrictions
are a significant setback for the project. Following the ICZM institution framework could be
difficult, for example, since 1985 a coordinated programme has not been established in
Indonesia.
Moreover, ICZM always takes the idea of defining zoning boundaries more clearly. This
aspect was missing in the CPEC framework because it lacked clarity in its 'urban planning.'
ICZM aims to invest ample time and effort in defining zoning boundaries. However, it isn't easy
to determine these zoning boundaries. Despite all the feasibility plans and the specific framework
employed by the ICZM, sources of revenue are likely to be a significant issue. Pakistan's
government has had a history of not providing sufficient and consistent funding.
Furthermore, even if funds are collected, they are not necessarily directed towards implementing
the project. Ideas such as red-tapism and corruption prove significant obstacles in the
implementation process. Hence, ICZM is not necessarily a success but perhaps a step in the right
direction.
ICZM Framework for Gwadar

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Springer (2014), https://link.springer.com/chapter/10.1007/978-3-319-12367-7_6,
Accessed 2 Nov 2021.
ICZM Framework for Gwadar

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