ATTRACTING FOREIGN DIRECT INVESTMENT (FDI) INTO THE MARITIME SECTOR: STRATEGIES AND POLICY FRAMEWORKS

Abstract

Foreign Direct Investment (FDI) has become an important source of capital, technology, managerial expertise, logistics connectivity and international market integration for maritime economies. For Pakistan, the maritime sector presents a particularly significant investment opportunity because of its strategic location along the Arabian Sea, its proximity to major international shipping routes, its ports at Karachi, Port Qasim and Gwadar, and its potential in shipping, logistics, fisheries, coastal tourism, shipbuilding, marine services, port digitalization and the wider blue economy. Despite these advantages, Pakistan has not yet attracted maritime FDI commensurate with its geographical and commercial potential. Regulatory uncertainty fragmented institutional arrangements, infrastructure deficiencies, macroeconomic volatility, security concerns, weak project preparation, limited port-hinterland integration and inconsistent investment facilitation continue to reduce investor confidence. This paper examines the determinants of maritime FDI and develops strategies and policy frameworks for attracting sustainable foreign investment into Pakistan’s maritime economy. Drawing on recent academic literature and international policy evidence up to 2026, the paper argues that maritime FDI should be approached not simply as a search for foreign capital but as a mechanism for increasing productive capacity, technology transfer, exports, employment, supply-chain integration and environmental sustainability. The study recommends a dedicated maritime investment framework based on regulatory predictability, bankable project pipelines, public-private partnerships, transparent concession regimes, targeted investment facilitation, port digitalization, green finance, investment screening, local economic linkages and institutional coordination. It concludes that Pakistan can substantially improve its attractiveness to foreign maritime investors by shifting from transaction-based investment promotion toward a stable, sector-specific and development-oriented maritime investment ecosystem.