EDITORIAL: It’s unwise of the government to ignore repeated calls to address the many shortcomings of what is called the blue economy, which encompasses all economic activities related to oceans, seas, coasts and maritime resources, from fisheries to acquaculture to marine biotechnology, renewable energy and maritime transport.
Now that some sort of an overhaul is seemingly underway to turn the economy around, it’s vital to tap into all sectors that have been performing below par. And, as sea-trade stakeholders have reminded the government twice in a few weeks, revitalising the maritime sector, which initially needs little more than adopting text-book business friendly policies, can prove to be a game-changer for the whole economy.
A good 70pc of global trade is managed by ships, after all – 95pc trade volume in Pakistan’s case – yet we’re unable to harness its potential, despite three major ports, because of years and years of mismanagement, corruption, poor governance, and ridiculously high port dues.
How can we even hope to be competitive when berthage, pilotage and docking rates at our ports are higher than Bangladesh, Dubai and Saudi Arabia? These costs impact the whole chain of the blue economy, from the shipping sector to importers and exporters, yet nobody seems even remotely bothered in Islamabad.
As recently as 1 July 2023, KPT (Karachi Port Trust) increased port duties by 41pc, which shows how suddenly and steeply these rates can rise, leaving the entire economy to find its own balance.
It’s not surprising that port authorities also display a classic regressive feature so glaringly visible in all public sector institutions (even semi-autonomous bodies) – they are unfeasibly overstaffed.
Unfortunately, this aspect of political culture – rewarding loyalists with the perks and privileges of government jobs – goes right back to the roots of Pakistani democracy.
And, clearly, this habit is not changing even as the economy has come perilously close to default and all sectors and institutions need to perform at their peak.
Legitimate businesses and investors can do no more than make noise, requests, and wait for someone in power to wake up to all the lost opportunities.
This is where the government must step in. History is full of stories of countries going to war just because of the lure of other countries’ ports.
Yet here we are, blessed with no less than three major ones, but bent upon wasting their potential to wanton corruption. There is an entire economy to be erected on the businesses of fisheries, coastal tourism, and marine renewable energy, but only if there is enough understanding, interest and, above all, political will where it matters.
The ministry of maritime affairs can play a leading role in Pakistan’s possible economic turnaround. It is already very well aware of what needs to be done in the immediate term – basically clamp down on corruption and overstaffing – so there is clearly enough to get the ball rolling.
It must also bring all duties in line with international standards. This is a very competitive business, and we’ve never really even tested its deep waters, so the ministry would do well to engage experts that can help us take the first baby steps in big seas like maritime renewable energy. It would ultimately help cut down on fossil fuel imports and do the country a world of good.
So far, nothing that stakeholders have said and/or done has had any sort of effect. Perhaps the utter desperation of the present situation, where all options that can yield results must be explored, will force the government to unplug the benefits of the maritime sector.
Time will tell.
Copyright Business Recorder, 2024