The 105th anniversary celebration of the Communist Party of China (CPC) is a moment for reflection on China’s remarkable economic transformation, but it is also a time for reflection on the party itself. It will also be an occasion to review one of Asia’s longest strategic partnership: Pakistan and China and how this partnership can adapt to the new economic realities in the region. The forthcoming part of China-Pakistan cooperation must build on the blue economy, where maritime resources will serve as drivers of sustainable development and growth, while the China-Pakistan Economic Corridor (CPEC) will remain the cornerstone of the partnership.
The CPC’s own success in China has seen hundreds of millions of people brought out of poverty and earned a place for China as the world’s second biggest economy and largest trading power. Pakistan has been China’s most trusted strategic partner and its overall cooperation has grown from diplomacy, defense, infrastructure, energy, education, industrial development, technology to trade. The flagship of this partnership is the CPEC launched under the Belt and Road Initiative (BRI) in 2015, which is projected to spend more than USD 60 billion in investments in energy, transport infrastructure, Gwadar Port, industrial zones, and connectivity projects. These investments have helped significantly enhance the energy supply, road connectivity and regional connectivity in Pakistan and also made it more strategic as a gateway of Western China and Arabian Sea.
The world economy is rapidly evolving towards industries that are sustainable for the ocean. The oceans are responsible for more than 80% of all global trade in merchandise products, as well as 98% of the global internet traffic carried on submarine cables, and they are an important source of food security for over three billion people around the world, and they are one of the fastest growing sectors of the global economy, according to a report by the OECD called The Ocean Economy to 2050. These figures highlight the importance of maritime development as a strategic focus of key economies. This switch offers a historic opportunity for Pakistan. The country has a 1,050-kilometre long coast line, an Exclusive Economic Zone (EEZ) of about 290,000 km2 and a long extended continental shelf with its rich fisheries, marine biodiversity, offshore energy resources, minerals and tourism potential. Despite the benefits, the contribution of Pakistan’s ocean economy is still limited to about US$1 billion or 0.4% of national GDP, signifying that the potential of the country’s ocean economy is tremendous.
There is much to be learned from China. It has also become a global leader in smart ports, shipbuilding, marine engineering, aquaculture, offshore renewable energy and maritime logistics over the last 20 years. The experience could be utilized in the modernization of fisheries, to increase seafood processing, to create cold chain logistics, to develop the marine biotechnology sector, and to promote sustainable coastal tourism in Pakistan. Such partnerships would not only broaden the economic base of Pakistan, but also create jobs, boost exports and enhance food security. In addition, Gwadar Port, mainly seen as a component of connectivity in the region, should be thought of as the center of a complete blue economic ecology. Gwadar has potential to accommodate seafood processing industries, fish exports, ship repair and maintenance industries, marine logistics, marine research centers, and coastal tourism in addition to its role in cargo handling. With its strategic location at one of the world’s busiest maritime corridors, Pakistan has the opportunity to develop into a regional hub, linking South Asia, Central Asia, the Middle East and Africa. The next stage of the CPEC should therefore go beyond infrastructure sector to the high value maritime industries. The creation of the Blue Economy Special Economic Zones around Gwadar and the other coasts can make the zone an attractive investment destination for the Chinese Government and various other industries for aquaculture, seafood value chains, renewable offshore energy, desalination technologies, marine biotechnology, and digital port infrastructure. Joint ventures between Pakistani and Chinese companies would enable technology transfer, and also connect Pakistan to regional maritime value chains.
It is an evident fact that more effective cooperation at sea can bring economic dividends. China is now the largest market for aquatic products in Pakistan and it has a huge potential to expand its market for value added seafood products. Pakistan has the potential to significantly expand its seafood exports and enhance the lives of thousands of coastal families with the use of more modern fishing gear, an efficient cold-chain, and internationally certified quality standards, along with improved processing facilities. The blue economy is also in line with the current global push towards sustainability. There is need for concerted action in the face of climate change, rising sea level, coastal erosion, and marine pollution and dwindling fish stocks. Pakistan and China have the opportunity to make joint investments in marine scientific research, sustainable fisheries management, coastal ecosystem restoration, offshore renewable energy, and climate-resilient infrastructure. Such efforts would help to promote economically viable development that is sustainable and inclusive of the social community.
Therefore, we need to realize the need and importance of knowledge, innovation and cooperation. The cooperation between universities, research institutes and policy think tanks between both countries in the fields of marine economics, ocean governance, maritime law, blue finance and coastal resource management. This cooperation will help Pakistan to develop indigenous expertise to make evidence-based maritime policies and develop a skilled workforce for emerging ocean-based industries. Moreover, the private sector should also have a key role. Chinese enterprises have a wealth of experience in port operations, digital logistics, marine engineering, aquaculture, and renewable energy technologies. There is potential for industrial competitiveness to be strengthened through joint ventures, investment partnerships and technology transfer which can bring benefits to enterprises in Pakistan. Joint ventures, investment partnerships and technology transfer can be designed to provide benefits to Pakistani enterprises as they gain in industrial competitiveness, creating high quality jobs.
After 105 years of existence, the CPC is preparing to enter into a new era in its leadership, while Pakistan and China are moving into a new phase of their bilateral relationship. Transformative gains have already been achieved by the “iron brotherhood” in terms of infrastructure and connectivity. The job now is to translate ocean potential into sustainable ocean economies. The future of Pakistan-China cooperation is not just on the highways and economic corridors but across the waters of the Arabian Sea too. The bilateral cooperation will be expanded to a new dimension of the blue economy, facilitating new trade and innovation opportunities, jobs, climate resilience, and integration between the two regions. If such a plan was implemented, the developmental philosophy of the CPC would be respected and at the same time Pakistan would be able to tap into one of its most valuable and untapped assets of the economy. The decade ahead should, therefore, bring about a shift in this paradigm, from infrastructure-driven connectivity to ocean-driven prosperity, building upon the friendship-driven path and ensuring that Pakistan and China continue on the road of friendship to shared prosperity.
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