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.

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:

Haq's Musings

South Asia Investor Review

US EIA Estimates of Oil and Gas in Pakistan

Gwadar to Rival Shenzhen

Exxon Exploring Offshore Oil and Gas in Pakistan

Why Blackouts and Bailouts in Energy-Rich Pakistan?

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Comment by Riaz Haq on March 21, 2021 at 12:41pm

While briefing the meeting, BCDA (Balochistan Coastal Development Authority) Director General Babar Khan Kakar said that a master plan of the coastline was being prepared and feasibility studies of five fishing sites had been included in the tourism promotion projects. He said seven eco-tourism resorts, construction of nine rest areas at the coastal highway and other projects had also been prepared.

Mr Khan said construction of eight floating jetties, five beach parks and two nurseries of salicornia had also been included in the development projects. He said tourist resorts at Gadani, Miani Hour, Kund Malir, Ormara, Pasni, Gwadar Marine Drive and Jewani Sunset Point would be set up.


https://www.dawn.com/news/1613735

Comment by Riaz Haq on September 1, 2021 at 7:12pm

Scuba diving in #Karachi: #Pakistan isn't a popular destination for water #sports, but new, high-profile projects—such as #CPEC and #Gwadar Club & Ninety Nine Beach Resort—are bringing more people into contact with the country’s #seawater sites. #tourism https://www.cntraveler.com/story/pakistan-mustafa-hasan-locals-guide

Which is your favorite site?

I love Charna Island, located near Mubarak Village in Karachi, especially when thousands of jellyfish happen to swim past. It’s a breeding ground for Arabian species, with stingrays, barracudas, pufferfish, sergeant majors, parrotfish, moray eels, albino eels, crabs, lobsters, and octopuses—and, although they’re rare, even bull sharks have been recorded here. The place offers a unique opportunity to feel as though you’re discovering a reef for the first time. Not only am I spellbound by its otherworldly beauty, but it also helps me to understand the importance of preserving this precious environment. Charna has a giant rock situated in the middle, which protects the island from strong waves, making it ideal for everyone to have a go at snorkeling here. The South Wreck is another extraordinary spot—the best-kept secret for experienced divers.

When is the best time to take a dip?

The typical diving season is from October to March, when sea conditions are usually calm and visibility is excellent. The water’s crystal-clear appearance means you’ll easily be able to spot the turtles and dolphins at their most active during boat rides.

What are the most exciting things to do on land in Karachi?

Hire one of the beach huts dotted along Hawks Bay or Turtle Beach; they have spectacular sea views across the wide sandy landscape. There are some great camel tours around here—take one at sunset. But in the evening, go to Do Darya, which translates roughly to “the place where two rivers meet;” here, many restaurants cluster at the edge of the sea. One of my favorites is Kolachi, which serves fantastic barbecue food. Next, head out on a private cruise with Al-Noor for live music and mouth-watering local dishes. The next day, go to Saddar Town for a street-food tour, during which you’ll find the best biryani and numerous roadside stalls selling bun kebabs. From here, it’s an easy walk around the corner to Empress Market for locally made products.

Any other outdoor-activity highlights?

I like to go kayaking through Karachi’s mangrove forests. It’s not only a simultaneously serene and thrilling adventure but also a great environmental-education journey—mangrove trees in coastal zones provide valuable protection from events caused by climate change. I also love connecting with nature and the beautiful mountainous terrains in northern Pakistan.

What makes Pakistan unique?

It has everything: diverse landscapes that range from woodland to lakes, beaches to deserts, peaks to cities. One day I can surf the rolling waves of its shoreline, the next I can trek to high altitudes or climb aboard the classic railways for a historic ride, ending the day at a chai dhaba [roadside tea stop] anywhere. It’s a country that will scoop you up with its rhythmic beats, rich aromas, and spectacle of sights—whatever emotion it draws from you is guaranteed to be deep.

Comment by Riaz Haq on September 25, 2021 at 10:36am

MARITIME MINISTRY INITIATES A HUGE ECONOMIC TRANSFORMATION PROJECT FOR KARACHI UNDER CPEC

September 25, 2021: A monumental decision was taken during the 10th Joint Cooperation Committee (JCC) on CPEC, held on 23rd September 2021 at Islamabad and Beijing. The two countries agreed to include Karachi Coastal Comprehensive Development Zone (KCCDZ) under the CPEC framework.

KCCDZ, an initiative of the Ministry of Maritime Affairs focuses on providing Karachi with an ultra modern urban infrastructure zone, placing Karachi amongst the top port cities of the world.

In a first of its kind even for CPEC, the planned multibillion dollar mega KCCDZ project will be built on direct Chinese investment in partnership with Karachi Port Trust (KPT). The quantum of expected investment is around USD 3.5 billion.

Developed on reclaimed area of approximately 640 hectares on the Western back waters marsh land of KPT, KCCDZ will be a flagship project for not only Pakistan but the entire region.

In accordance with PM Imran Khan’s vision for promoting low-cost housing, KCCDZ will also provide residential resettlement to more than 20,000 families living in the surrounding slums.

The environment friendly mega KCCDZ, envisages 4 new berths for KPT adding depth to Pakistan’s expanding maritime sector. It will also house a state-of-the-art fishing port, with a world class fisheries export processing zone to boost Pakistan’s trade potential. It will also drastically improve the marine ecosystem and reduce pollution by establishing a water treatment plant at the mouth of the Lyari River.

KCCDZ will connect with the rest of Karachi through a majestic harbor bridge rising from behind Pakistan’s Deepwater Port, with exit ramps for Manora Islands and Sandspit beach.

KCCDZ carries enormous potential for global investors as well.

KCCDZ will unlock Pakistan’s unexplored Blue Economy and significantly enhance development and industrial cooperation between the two brotherly countries.

Comment by Riaz Haq on September 25, 2021 at 10:36am

KCCDZ project: Secretary says BoI has made efforts to facilitate MoU signing between KPT, CRBC

https://www.brecorder.com/news/40122243/kccdz-project-secretary-say...

Board of Investment (BoI) Secretary Fareena Mazhar stated that the BOI, as the convenor of the Joint Working Group (JWG) on Industrial Cooperation under the CPEC, has undertaken rigorous efforts to facilitate the signing of an MoU between Karachi Port Trust (KPT) and China Road and Bridge Corporation (CRBC) on Karachi Comprehensive Coastal Development Zone (KCCDZ) project.

Consensus was reached to make the KCCDZ project a part of the CPEC framework during the fifth meeting of the JWG on Industrial Cooperation held on 15th December 2020.

The MoU will pave way for resolution of infrastructure issues plaguing the city of Karachi, besides fostering maritime development, and providing job opportunities through generation of sustainable economic activity based on transfer of technology to the country’s maritime industry.

The meeting was co-convened by the BoI and the National Development and Reform Commission (NDRC) of China.

----
The said Framework Agreement was initiated by the BOI and, it was shared with the Chinese side after fulfilling all codal formalities in November 2020.

The Draft Framework Agreement emphasises on Business-to-Business (B2B) and people-to-people collaborations to successfully accomplish the envisaged goals during the second phase of the CPEC.

As CPEC Industrial Cooperation requires active participation of private sectors from both sides, the secretary BOI stressed on the pressing need for the establishment of an effective communication mechanism to ensure regular interactions and exchange of ideas with the NDRC.

She underscored the significance of periodic deliberations to explore new avenues of enhanced bilateral cooperation, which would also play a key role in mobilising the engagement of the private sector enterprises.

Furthermore, during the 10th JCC meeting, the Chinese side apprised that efforts are being undertaken by the NDRC and pertinent Chinese institutions to expedite the finalisation of the Framework Agreement, as it will further cement the industrial cooperation between China and Pakistan during the 2nd phase of the CPEC.

Moreover, progress update of Dhabeji SEZ, Sindh, Allama Iqbal Industrial City (AIIC), Punjab, and Bostan SEZ, Balochistan was also discussed.

Whereby, the BOI Secretary informed that the BOI has sped up provision of utilities to the SEZs and both the AIIC and Boston SEZs are open for sale of plot to potential investors.

Both sides also discussed the progress made in the development of the CPEC SEZs, especially the Rashakai SEZ in Khyber-Pakhtunkhwa, Pakistan, which was recently launched in May 2021, while the signing ceremony of the Development Agreement of the Rashakai SEZ was coordinated by the BoI in September 2020.

----

The BoI has also established a Pakistan China B2B Investment Portal in collaboration with the China Council for International Investment Promotion (CCIIP) to bring together Pakistani and Chinese businesses for potential joint ventures in the country. She welcomed export-oriented Chinese companies to form JV partnerships in Pakistan and contribute to further strengthening bilateral investment cooperation.

Mazhar further informed that an MoU on industrial cooperation was signed between Pakistan and China in 2018, and based on this MoU, the BoI facilitated the Chinese side to take up the initiative of industrial diagnosis for the purpose of sharing technical and managerial know-how.

In this regard a textile industrial diagnosis was carried out by Chinese experts in 2019 and its report was well received by relevant stakeholders from both sides in the textile sector.

The BoI and the NDRC agreed to resume industrial diagnosis of other priority sectors of the economy through a mutually agreed action plan.

Comment by Riaz Haq on September 26, 2021 at 12:56pm

• Coastal comprehensive development zone to be established on KPT’s reclaimed land
• $3.5bn plan envisages new berths for port, new fishery port, harbour bridge to unlock Pakistan’s Blue Economy
• Centre calls the initiative a game-changer for Pakistan

https://www.dawn.com/news/1648433/cpec-panel-okays-ambitious-karach...

KARACHI: Calling it a “game-changer”, the federal government on Satur­day unveiled an ambitious plan to rebuild Karachi’s coastline under the China-Pakistan Economic Corri­dor (CPEC) with $3.5 billion “direct Chinese investment” that aims to overhaul city’s seaboard with new berths for the port, a new fishery port and a ‘majestic harbour bridge’ connecting it with Manora islands and Sandspit beach.

The Karachi Coastal Co­m­prehensive Develop­ment Zone (KCCDZ) — spread over 640 hectares or 1,581 acres on the western backwaters marsh land of the Karachi Port Trust (KPT) leading to revamp one of the oldest city slums Machhar Colony relocating its more than half a million population — is an initiative of the Ministry of Maritime Affairs.

The KCCDZ is the latest addition to CPEC projects aimed at providing Karachi with an ultra modern urban infrastructure zone, placing it among the top port cities of the world.

The announcement came from the top when a key member of Prime Minister Imran Khan’s cabinet sha­red some details of the project and claimed it carried “enormous potential for global investors as well”.

“And the best thing of this project is that it’s solely based on foreign [Chinese] investment without any loan,” said Minister for Mar­i­time Affairs Syed Ali Zaidi while speaking to Dawn.

Also read: Slow pace of work on CPEC irks Chinese companies

“The Chinese work so fast and I guess that it would not take more than five or six years to complete the project. Under the agreed plan, we would relocate some 20,000 to 25,000 families from Machhar Colony and relocate them. Believe me it’s a huge thing for Pakistan. It’s something massive. It would bring multifold advantages to Pakistan’s maritime economy and further strengthen our coastal development.”


He said after assuming the office as the minister for maritime affairs he vigorously looked for the opportunity for the KCCDZ and made all-out efforts to include it in the CPEC projects. For this purpose, he added, he consulted a number of Chinese companies, investors and officials of the neighbouring country and his efforts finally yielded results.

Earlier, the federal minister shared the “monumental decision” on a social me­dia platform, coming up with ske­tchy details of the KCCDZ. He, however, did not explain terms and conditions that convinced the Chinese investors to pour in $3.5 billion (around Rs592 billion).

“A monumental decision was taken during the 10th Joint Cooperation Commi­ttee (JCC) on CPEC, held on 23rd September 2021 at Islamabad and Beijing,” Mr Zaidi tweeted while sharing a formal statement of the announcement.

“The two countries agreed to include KCCDZ under the CPEC framework. KCCDZ, an initiative of the Ministry of Maritime Affairs focuses on providing Karachi with an ultra modern urban infrastructure zone, placing Karachi amongst the top port cities of the world.”

The minister also shared animated and picturesque images of a developed KCCDZ, showing a huge developed coastline dotted with multiple buildings, concrete structures and planned neighbourhoods without mentioning their utilities. He claimed all the developments would take place over “reclaimed area of the KPT” spanning over huge 640 hectares or 1581.474 acres.

“Developed on reclaimed area of approximately 640 hectares on the Western back waters marsh land of KPT, KCCDZ will be a flagship project for not only Pakistan but the entire region,” the statement claimed.

Comment by Riaz Haq on September 27, 2021 at 4:16pm

#China Plans $3.5B #Investment in #Pakistani #Port Project. Karachi Coastal Comprehensive Development Zone, or #KCCDZ to include constructing a mixed-use residential/commercial/seaport project on underutilized lands of the #Karachi Port Trust. #CPEC https://sgq.io/0pKfTkh

At this year's joint meeting on the China Pakistan Economic Corridor (CPEC) project, Pakistan's Ministry of Maritime Affairs came away with a huge commitment. The Chinese government has agreed to make a direct investment - not a loan - of $3.5 billion in the Karachi Coastal Comprehensive Development Zone, or KCCDZ. This massive proposal would include constructing a mixed-use residential/commercial/seaport project on underutilized lands belonging to the Karachi Port Trust.

Illustrations of the 1,500-acre development show a mixture of high- and mid-rise buildings on a strip of reclaimed land, just across an inlet from Karachi's TP3 sewage treatment plant. The illustration suggests that its new buildings and roads will also replace the Machar Colony neighborhood, an unplanned settlement also known as the Fisherman's Colony. This area is home to about 150,000 people, primarily low-income residents who work in fishing or shrimp-processing, according to Medecins Sans Frontieres.

In a release, Pakistan's Ministry of Maritime Affairs said that the project would include residential resettlement assistance for "more than 20,000 families living in the surrounding slums."

The proposed development also appears to transform the fishing harbor on the port's West Wharf - a jam-packed marina for small fishing vessels - into a new waterfront commercial district. According to the ministry, a new "state-of-the-art fishing port" will take its place, along with a "world-class fisheries export processing zone," according to the ministry.

KCCDZ will also add four new ship berths for the Karachi Port Trust, located on the new, reclaimed "peninsula" in the harbor. It will also add a giant harbor bridge across Baba Channel, giving the new district a direct highway connection with Karachi's container terminals. It also adds an extra sewage plant adjacent to the existing TP3 facility.

"The KCCDZ will unlock Pakistan’s unexplored Blue Economy and significantly enhance development and industrial cooperation between the two brotherly countries," the ministry said. "The KCCEZ is a game-changer for Pakistan."

Comment by Riaz Haq on September 27, 2021 at 10:24pm

Karachi's ‘China port’ opens again to public

https://www.dawn.com/news/1648615


KARACHI: It was back in 2018 when several Karachiites first discovered this new picnic spot at the South Asia Pakistan Terminal (SAPT). But no sooner did social media along with a few newspapers publish its pictures, the hungry-for-outings public thronged the place, which was closed soon after. Well, it has been reopened recently.

This comparatively bare portion of the beach presents a clear and closer view of the breakwater, Oyster Rocks and the tall port cranes and all the cargo ships entering and leave port.

There is also a freshness about the sea breeze. A father had brought with him his two children on his bike here to enjoy the view. They were happily sipping on their box of juices while digging into a bag of potato crisps as they animatedly pointed towards the ships and the fishermen at work before them. Some children are also bathing in the sea.


“We have been coming here regardless of the barriers and closure for our catch,” says one of the several fishermen busy sorting out their catch for the day. “But it was closed for the general public as there was plenty of activity at SAPT at the time. Now the Chinese workers seem to have left and this place has been reopened again,” he added his observation.

There is all kinds of catch in the pile before them. There is very tiny fish that glitters and shines like small pieces of silver under the bright sun, there are tiny shrimp, which can be used as bait for bigger catch, too, along with different species such as squid. The fishermen are busy separating all the various species from each other and dropping them in baskets.

“Most of the catch from here is used in preparing chicken feed, also for plant fertiliser,” says another fisherman. “But we are going to take it all to the Karachi fisheries to sell.”

Yet another fisherman informed that they arrive at the place before dawn for the catch.

Dawn tried to call the Karachi Port Trust about the reopening of the China port but was informed that their offices won’t be able to respond regarding the matter or for any comments over the weekend.

Comment by Riaz Haq on November 5, 2021 at 5:10pm

#Turkey begins constructing 4th warship for #Pakistan Navy. The keel-laying ceremony was held at the #Karachi Shipyard. It will have state-of-the-art #weapons & sensors, including surface-to-surface & surface-to-air missiles, & anti-submarine weapons http://sabahdai.ly/_103w

keel-laying ceremony beginning the construction of a MILGEM (National Ship) Ada class corvette tailored for the Pakistan Navy was held in the southern Pakistani port city of Karachi Friday.

The ceremony at the Karachi Shipyard and Engineering Works (KSEW) – Pakistan Navy's specialized shipbuilding division – was attended by Naval Chief Adm. Amjad Khan Niazi, Pakistan Navy officers and representatives of Turkey's state-run defense firm ASFAT, said an official statement.

Addressing the ceremony, Niazi said the production of indigenous modern warships with the help of Turkey is a proud moment for Pakistan.

The joint venture, he said, will open new avenues of cooperation between Ankara and Islamabad in the field of defense production.

Induction of the MILGEM-class ships, the statement added, would significantly increase the operational capabilities of the Pakistan Navy.

The ships are being constructed according to modern naval ship class standards and will be equipped with state-of-the-art weapons and sensors, including surface-to-surface and surface-to-air missiles, and anti-submarine weapons, the statement added.

In July 2018, the Pakistan Navy signed a contract with ASFAT for the acquisition of four MILGEM-class ships. According to the plan, two corvettes will be built in Turkey and the next two will be built in Pakistan, which also involves technology transfer.

MILGEM vessels are 99 meters (325 feet) long with a displacement capacity of 24,000 tons and can move at a speed of 29 nautical miles. The anti-submarine combat frigates can be hidden from radar.

In October 2019, President Recep Tayyip Erdoğan, along with then-Chief of Pakistan Navy Adm. Zafar Mahmood Abbasi, had cut the metal plate of the first MILGEM Ada class corvette during a ceremony in Istanbul.

Turkey is one of the 10 countries in the world that can build, design and maintain warships using its national capabilities.

Comment by Riaz Haq on December 14, 2021 at 5:39pm

Pakistan to Boost Shipping Fleet to Tackle Global Logistics Crisis. #Pakistan has over 1,000 Km coastline & 3 major ports, including #Karachi. It's close to #Africa, #MiddleEast, #Arab Gulf oil. Pak NSC has a fleet of 11 ships, wants to buy another 4 ships https://www.maritimeprofessional.com/news/pakistan-boost-shipping-f...


https://www.maritimeprofessional.com/news/pakistan-boost-shipping-f...

Pakistan is working to boost the capacity of its shipping fleet to draw on its strategic geographical position and help tackle the effects of a global supply chain crisis, the country’s maritime minister told Reuters.

Pakistan has a coastline of over 1,000 kilometers (621 miles) and three major ports, including Karachi. It is two days sailing time from destinations in Africa and the Middle East and its western shoreline is close to the Strait of Hormuz oil chokepoint.

A surge in demand for retail goods from people stuck at home under pandemic-related lockdowns and logjams impacting the supply of container ships and boxes to transport cargo have led to bottlenecks around the globe, which are set to continue into 2022.

Pakistan's Federal Minister of Maritime Affairs Ali Haider Zaidi said the country is in negotiations "through a public private mechanism to create joint ventures to expand into container shipping".

"The supply chain problems are faced by everyone and Pakistan is also affected. There are issues everywhere and this is one of the ways we are trying to deal with this longer term," he said on a visit to London.

The state-controlled Pakistan National Shipping Corporation has a fleet of 11 ships including oil tankers and dry bulkers and has issued a tender for another four ships, Zaidi said.

Pakistan would initially charter space on container ships "and test the market before we start discussion on how many (container ships) we acquire," he added.

Pakistan was also seeking to develop as a port hub for landlocked central Asian countries, Zaidi said, and that it was vital critical supplies reached neighboring Afghanistan after the Taliban's victory in August.

"The world and the financial superpowers cannot and should not abandon Afghanistan. If they do, it will be a catastrophic humanitarian (crisis)," he said. "It is our moral obligation to help them."

U.N. agency UNCTAD said in November smaller countries are expected to feel the most impact from the higher costs of importing goods.

Comment by Riaz Haq on December 23, 2021 at 10:32am

The protests were based on two primary grievances, each of which have implications beyond the tiny port city of Gwadar. The first is a reduction in fishing opportunities, particularly important for a district where 65 per cent of the population are fishermen. Thousands of deep-sea fishing vessels, including some owned by Chinese companies, are devastating the fish population in the waters off Gwadar. Deep-sea fishing vessels use long fish-catching nets, which also catch eggs and small fish, leaving little for locals.


https://www.lowyinstitute.org/the-interpreter/pakistan-and-china-un...

China’s demand for seafood is seemingly insatiable. According to a study by Stockholm University, China will require up to 18 million tons of additional seafood to satisfy its expected domestic consumption by 2030. In July this year, five Chinese deep-sea vessels were intercepted near Gwadar on suspicion of illegal fishing. The trawlers, subsequently found to be loaded with fish, were taken into custody by the Pakistan Maritime Security Agency. This incursion further aggravated protesters, who are now demanding a complete end to deep-sea fishing in the 12 nautical-mile sea limit off Gwadar.

The second reason for the protests is the plethora of issues experienced by local residents due to the security arrangements of Chinese personnel working on BRI projects. Chinese workers in Gwadar have been under attack by Baloch insurgents who blame China for the exploitation of their resources. As a result, Gwadar has been heavily militarised. Local residents must pass through numerous checkpoints on a daily basis, where they have to prove their identity and at times are refused passage. Recently, locals have resorted to protest against the daily humiliation of justifying their movements and have demanded an end to the security controls.

Pakistan’s Senate was advised in late November that China would receive 91 per cent of the revenue generated by Gwadar port.

Despite multiple public demonstrations, the Pakistan government has not fulfilled any of the protesters’ demands, which also include improvements to water supply, electricity and roads. Pakistan’s Prime Minister Imran Khan announced in a tweet that he has taken notice, but there has been no concrete follow-up action. Now protesters say they will block operations of Chinese-controlled Gwadar port and its allied expressways. They have also announced a long march to the capital Islamabad if demands are not met.

Indirectly, Chinese interests in Gwadar have become a target of protesters’ demands. Although the demonstrations are not explicitly anti-Chinese, the demands put forth are in direct opposition to Chinese goals. For instance, Pakistan’s Senate was advised in late November that China would receive 91 per cent of the revenue generated by Gwadar port. Gwadar protesters led by Rehman are now demanding that 98 per cent of the revenue be retained by Gwadar and that only 2 percent goes to China. China has spent billions of dollars in Pakistan with the anticipation of substantial revenue from Gwadar port in the future.

The Gwadar sit-in protest was temporarily called off last week when the government announced it would accept the demands of protestors. The movement’s leader has said that if the government fails to implement the promised changes, they will protest again with more intensity.

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