Blue economy a ‘game changer’ with $100bn potential for Pakistan: Aurangzeb

Federal Minister for Finance and Revenue Muhammad Aurangzeb has termed the blue economy as a ‘game changer’ for Pakistan’s future growth, underscoring its potential to reach $100 billion by 2047 and reaffirming the government’s commitment to policy continuity.

He made this statement while delivering a virtual address on Tuesday at the inaugural session of the Pakistan International Maritime Expo & Conference (PIMEC), organised at the Expo Centre Karachi by the Pakistan Navy and the Ministry of Maritime Affairs.

Ahsan Iqbal opens PIMEC, calls for promoting blue economy

Aurangzeb observed that the maritime sector currently contributes only around 0.4 to 0.5% to the national GDP - approximately $1 billion - but holds vast potential for expansion.

The World Bank defines the blue economy as the sustainable use of ocean resources for economic growth, improved livelihoods and jobs, while preserving the health of ocean ecosystems.

He endorsed the Ministry of Maritime Affairs’ vision of developing this into a $100 billion blue economy by 2047, coinciding with Pakistan’s 100th anniversary and the broader national ambition of becoming a $3 trillion economy. He described this goal as “ambitious but very reachable”, supported by a clear and robust roadmap.

The minister underlined the importance of enhancing fisheries and aquaculture through value-added processing, modern cold-chain logistics and international-standard hygiene practices.

“Pakistan’s seafood exports, currently around $500 million, could feasibly increase to $2 billion within the next three to four years under the National Fisheries and Aquaculture Policy, which has been developed in strategic partnership with the Food and Agriculture Organization (FAO),” said Aurangzeb.

He assured that the government remains firmly committed to ensuring policy consistency and continuity to see such initiatives through their full cycle.

Aurangzeb further emphasised the modernisation and digitisation of port operations at Karachi, Port Qasim and Gwadar, aligning them with global best practices to strengthen regional trade connectivity. He also highlighted the potential of renewable energy projects, including tidal and offshore wind generation, and the need to explore innovative financing mechanisms such as blue bonds and blended financing to fund sustainable development and conservation initiatives.

In his remarks, Aurangzeb also highlighted the significant progress Pakistan has achieved in recent years toward restoring macroeconomic stability.

He noted that the exchange rate has remained stable, foreign exchange reserves have risen to cover more than two and a half months of imports, over $14 billion.

“Inflation has been a very good story, although we have seen it coming back up slightly because of the unfortunate floods that afflicted the country this year, but it remains in single digits,” said Aurangzeb.

He also pointed out that the policy rate has come down in line with improving inflation, while all three leading global rating agencies have upgraded Pakistan’s outlook to “stable” after nearly three years, reflecting international confidence in the direction of the country’s economic policies.

Government’s economic team unveils progress report on structural reforms, way forward

“After a hiatus of 2.5 years, we have three global rating agencies that are fully aligned not only in terms of upgrades but also outlook, which is stable for Pakistan’s economy,” he said.

Referring to Pakistan’s engagement with the International Monetary Fund (IMF), the minister said that the recently concluded staff-level agreement in Washington further strengthens global confidence in the government’s reform agenda and macroeconomic management.

“We find ourselves in a good spot at this point because there is a confluence of factors,” he said.

The minister said Pakistan should leverage its longstanding relationships with key partners, including China, the United States, and the Gulf countries, particularly Saudi Arabia and the UAE, to shift from government-to-government arrangements toward greater trade and investment flows.

Turning to the blue economy, Aurangzeb observed that the maritime sector currently contributes only around 0.4 to 0.5% to the national GDP - approximately $1 billion - but holds vast potential for expansion.

He endorsed the Ministry of Maritime Affairs’ vision of developing this into a $100 billion blue economy by 2047, coinciding with Pakistan’s 100th anniversary and the broader national ambition of becoming a $3 trillion economy. He described this goal as “ambitious but very reachable”, supported by a clear and robust roadmap.

The minister underlined the importance of enhancing fisheries and aquaculture through value-added processing, modern cold-chain logistics and international-standard hygiene practices.

“Pakistan’s seafood exports, currently around $500 million, could feasibly increase to $2 billion within the next three to four years under the National Fisheries and Aquaculture Policy, which has been developed in strategic partnership with the Food and Agriculture Organization (FAO),” said Aurangzeb.

He assured that the government remains firmly committed to ensuring policy consistency and continuity to see such initiatives through their full cycle.

Aurangzeb further emphasised the modernisation and digitisation of port operations at Karachi, Port Qasim and Gwadar, aligning them with global best practices to strengthen regional trade connectivity. He also highlighted the potential of renewable energy projects, including tidal and offshore wind generation, and the need to explore innovative financing mechanisms such as blue bonds and blended financing to fund sustainable development and conservation initiatives.