Blue Growth Under Fiscal Constraints: A Qualitative Literature-Based Cost-Benefit Assessment of Maritime Industrialization as a Strategy to Mitigate Pakistan’s Balance of Payments Crisis

Résumé fourni par la source

Pakistan has been grappling with balance of payments problems for decades. Pakistan is still faced with the threat of lack of foreign exchange because the tendency of imports is faster than that of exports. The major reason for this is the high dependency on energy, industrial equipment and raw materials. In this case, maritime industrialization appears to be a potential solution. The large coast line offers a significant unexploited potential in Pakistan in the maritime industries like shipping, ports, fisheries, shipbuilding, coastal tourism and others. This paper seeks to establish whether maritime industrialization may serve as a buffer for the balance of payments issues that Pakistan is experiencing under stringent budget constraints. The study employs a qualitative analysis framework as opposed to a quantitative approach, survey, or economic test. It shows that maritime industrialization can be relied upon to help stabilize Pakistan’s external sector as long as the process is pursued in a strategic, gradual, and well-governed manner. Some of the advantages of pursuing this approach include diversification of exports, reduction of logistics costs, creation of jobs, improved port performance, foreign investments, and decreased reliance on external shipping companies. The challenges associated with this approach are also significant, including huge financial requirements, institutional shortcomings, environmental implications, governance issues, energy deficits, and lengthy time frame. The study concludes by emphasizing that maritime industrialization should not be regarded as a short-term strategy to help address Pakistan’s balance-of-payments problem.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.