Fleet to double under Blue Economy plan
Cargo handling up 5% to 79m tonnes; seafood exports target $500m as offshore exploration continues
KARACHI:
The government has set out an expansive Blue Economy agenda for FY2026-27, including plans to more than double Pakistan's national shipping fleet, invest heavily in maritime infrastructure, expand fisheries development and continue offshore energy exploration, even as key indicators from the outgoing fiscal year point to modest growth across the sector.
According to the Annual Plan 2026-27 made public alongside the budget, shipping, fisheries, port infrastructure and offshore energy have been identified as central pillars of the government's strategy to increase the economic contribution of Pakistan's coastal and marine resources.
The roadmap comes at a time when the maritime sector is in a transitional stage, as cargo handling has also seen support from shifting regional trade routes amid the Iran conflict, which has diverted additional shipping activity towards Pakistani ports. The development has to some extent covered up the sector's relatively small contribution to economic activity despite Pakistan's strategic location and coastline stretching more than 1,000 kilometres along the Arabian Sea.
During July-March FY2025-26, total cargo handled at the country's three major ports – Karachi Port, Port Qasim and Gwadar Port – reached 79 million metric tonnes, reflecting a 5% increase over the corresponding period of the previous year, according to official documents.
While the increase points to some improvement in port activity, overall cargo volumes remained closely linked to broader trade and economic trends that have been subdued in recent years.
The Pakistan National Shipping Corporation (PNSC), the country's state-owned shipping company, added three vessels during the outgoing fiscal year, increasing its operational fleet to 14 ships.
The government now plans to significantly expand that capacity through the PNSC Fleet Development Plan, under which the national fleet is expected to grow from 14 to 30 vessels over the coming years. The expansion is likely to increase Pakistan's share in the transportation of its own imports and exports, much of which is currently handled by foreign shipping companies.
The fisheries sector, another key component of the Blue Economy strategy, recorded seafood exports worth $405 million during July-March FY2025-26. The government expects exports to reach $500 million by the close of the fiscal year.
Pakistan's seafood exports continue to rely largely on markets in the European Union and Gulf Cooperation Council (GCC) countries. However, industry stakeholders have repeatedly highlighted infrastructure constraints, including inadequate cold storage facilities, limited processing capacity and deficiencies in fish handling systems, as factors restricting export growth and value addition.
The government has also earmarked substantial resources for upgrading maritime infrastructure under the Public Sector Development Programme (PSDP). Key projects include the Korangi Fish Harbour (KoFHA) Export Infrastructure Project costing Rs1.048 billion, the Karachi Shipyard & Engineering Works (KSEW) Infrastructure Upgradation project worth Rs10.69 billion, and the Gadani Shipbreaking Modernisation project estimated at Rs12.9 billion.
Questions were sent to relevant authorities; however, responses could not be obtained as officials were not reachable outside working hours.
The Gadani shipbreaking yard remains one of the largest ship recycling centres in the world and is an important source of scrap metal for domestic industries. Authorities expect the planned investment to improve infrastructure and operational standards within the sector.
The government's maritime strategy also places renewed emphasis on offshore energy exploration. Official documents show that 23 offshore oil and gas blocks covering a combined area of 53,510 square kilometres have been awarded for exploration activities. Planned investment in these blocks stands at approximately $80 million over a three-year licensing period.
Exploration activities in the awarded blocks are expected to continue during FY2026-27 as authorities seek to assess the commercial potential of offshore hydrocarbon resources.
Alongside oil and gas exploration, the government plans to undertake technical and feasibility studies for offshore wind energy projects in the Sindh Wind Corridor and the Hingol National Park Corridor. The studies form part of broader efforts to evaluate the potential of marine-based renewable energy resources as Pakistan looks to diversify its energy mix.
In addition to infrastructure projects and resource exploration, policymakers are preparing a series of regulatory initiatives aimed at providing a long-term framework for maritime development. The government plans to secure approval of the National Maritime Policy, National Shipping Policy and National Fisheries and Aquaculture Policy during the next fiscal year.
The proposed policies are expected to address issues related to governance, investment, sectoral development and resource management across different segments of the maritime economy.
Plans have also been outlined to expand inland and coastal aquaculture projects in Sindh, Balochistan and Punjab in an effort to increase fish production and support employment opportunities in rural communities. Another initiative included in the annual plan is the issuance of the country's first ferry service licence, which authorities hope will support marine tourism and improve maritime connectivity.
The government's targets for FY2026-27 represent one of the most comprehensive attempts in recent years to position the maritime sector as a driver of economic activity.
However, the scale of the planned expansion contrasts with the pace of growth recorded during the outgoing fiscal year. Cargo volumes, fisheries exports and fleet additions all registered incremental gains, while several long-standing challenges related to infrastructure, investment and competitiveness remain unresolved.
With major spending commitments now planned across shipping, fisheries, shipbuilding, shipbreaking and energy exploration, attention is likely to shift towards implementation and the extent to which the proposed investments translate into higher trade volumes, stronger exports and greater economic activity.
The annual plan suggests that the government sees considerable untapped potential in Pakistan's coastal economy. Whether that potential can be converted into measurable economic gains will depend on the execution of projects, the effectiveness of new policies and the ability of public institutions to deliver on the targets set for the coming years.