Naufil Shahrukh
Co-founder, Maritime Study Forum
Senior Consultant-Researcher, AAOIFI
Pakistan’s relationship with the sea has always been one of historical continuity and modern neglect. From the Indus Valley ports that linked the subcontinent to Mesopotamia and the Persian Gulf, through the medieval trading networks of the Arabian Sea, to the strategic significance of Gwadar and Karachi in the contemporary Indo-Pacific, our maritime geography has shaped commerce, culture and connectivity.
For decades, we have suffered from what many of us in the maritime research community have termed “sea blindness,” a collective failure to treat the ocean as a living economic and strategic asset rather than a distant backdrop.
Globally, this mind-set has already shifted. The world’s ocean economy, or “Blue Economy,” is estimated to generate over $2.6 trillion to $3 trillion annually in gross value added, with over 3 billion people relying on oceans for their primary source of livelihoods [1].
International capital markets are increasingly prioritizing ocean health. According to the World Bank, the blue bond and blue Sukuk market has expanded exponentially, with global issuances surpassing billions of dollars to fund conservation, sustainable aquaculture, offshore renewable energy and green port infrastructure [2].
That blindness in Pakistan is finally beginning to lift. The Ministry of Maritime Affairs’ Maritime @100 vision, aiming to transform the economy into a $100 billion contributor by 2047, and the National Fisheries and Aquaculture Policy 2025–2035 represent important steps [3].
The current national contribution of $1 billion, or 0.4–0.5 per cent of GDP, stands in stark contrast to Pakistan’s vast unmapped potential. With an Exclusive Economic Zone (EEZ) and extended shelf spanning over 290,000 square kilometres, and a coastline exceeding 1,000 kilometres, the contrast between our actual contribution and potential in shipping, sustainable fisheries, green ports, coastal protection, ship recycling and ocean-based renewables could not be sharper [4].
The question is no longer whether the opportunity exists, but how we finance the infrastructure required to seize it without repeating the patterns of extractive development that have historically marginalized coastal communities.
Islamic Finance and the Blue Sukuk Opportunity
Here, Islamic finance and blue Sukuk structured in accordance with AAOIFI standards offer a particularly fitting instrument.
Sukuk are not merely Shari’ah bonds; when properly structured, they represent undivided ownership in real assets or projects, linking capital directly to tangible economic activity [5].
Blue Sukuk channel that capital towards ocean and coastal projects that deliver measurable environmental and social outcomes, including:
- Sustainable aquaculture and fisheries
- Mangrove restoration
- Climate resilient coastal infrastructure
- Cleaner ports and vessels
- Renewable-powered desalination
Global Proof of Concept
Proof of concept already exists globally. In 2018, the Seychelles launched the world’s first sovereign blue bond, with World Bank support, to transition its commercial fisheries into sustainable management models [6].
Following suit, sovereign and corporate pioneers such as Indonesia and Malaysia have demonstrated how Shari’ah-compliant debt capital can be directed towards marine preservation, wastewater treatment and climate-resilient water infrastructure. Malaysia, for example, launched the RM200 million Air Selangor Blue Sukuk [7].
Today, global ESG Sukuk issuances are worth more than $50 billion in outstanding value. This shows that both international and domestic ethical investors are ready to support projects that protect the ocean.
Pakistan’s Readiness
Pakistan already has the institutions needed to follow this trend. The Sustainable Financing Framework 2025 clearly includes blue financing tools such as Sukuk, alongside social financing instruments [8].
The areas that can be funded match what the Ministry of Maritime Affairs is focusing on: certified sustainable fisheries, restoring marine ecosystems, sustainable maritime transport and ports, and coastal adaptation projects.
The Green Sukuk issued in May 2025 was oversubscribed more than five times. That success demonstrated that local investors are interested and that the Debt Management Office and Pakistan Domestic Sukuk Company Limited can handle the process [9].
Creating a Blue Sukuk, or a blue-labelled Sukuk, is therefore a logical next step.
Structuring a Blue Sukuk
To build such a Sukuk, we must follow AAOIFI principles, including Shari’ah Standard No. 17 on Investment Sukuk and the new Draft Standard 62, which stress real ownership and sharing of risks [10].
Common structures for projects include:
Ijarah: Selling and leasing back existing port or ship assets.
Istisna’ combined with Ijarah: For building ships or port infrastructure.
Hybrid Wakalah: For portfolios that manage investments.
The assets behind the Sukuk must comply with Shari’ah rules and deliver clear benefits for the ocean. The money raised must be tracked, used properly and reported according to both AAOIFI rules and the ICMA Blue Finance Principles.
A strong fatwa from a Shari’ah board and an independent Second-Party Opinion (SPO) will help build trust among non-Islamic ESG investors.
Projects Ready for Financing
For Pakistan, the local projects are real and ready to go.
1. Green Renewable Logistics
Funding solar panels and electric equipment at Karachi Port Trust and Port Qasim. This can cut carbon emissions and modernize operations.
2. National Fleet: Hybrid Maritime Transport
Issuing Istisna’-Ijarah Blue Sukuk to acquire energy-efficient, dual-fuel ships for the Pakistan National Shipping Corporation. This can help secure the country’s shipping needs.
3. Value Aquaculture & Cold-Chain Logistics
Financing eco-friendly shrimp farms and off-grid solar cold-storage units in places such as Pasni, Ormara and Gwadar. This would also involve upgrading harbour processing facilities to improve Pakistan’s seafood exports.
4. Green Ship Recycling & Repair Yards
Transforming Gadani’s ship-breaking industry into a certified green recycling yard that meets the requirements of the Hong Kong International Convention.
5. Nature-Based Coastal Adaptation
Funding blue-carbon projects, such as restoring Pakistan’s mangrove forests in the Indus Delta. This can create carbon credits and generate returns on investment.
Putting Coastal Communities at the Centre
Money alone will not be enough. We have seen history show that maritime prosperity always comes from coastal communities. A Blue Sukuk program must therefore bring community development into the mix.
It should provide technical skills training, protect the livelihoods of artisanal fishers and allow coastal communities to genuinely participate in designing the projects.
We must not treat communities as mere observers. The same moral principles that guide Islamic finance i.e. equity, stewardship of resources and avoiding harm, fit naturally with this inclusive approach.
The Way Ahead
The way ahead is clear and doable. The Ministry of Maritime Affairs must work closely with the Ministry of Finance, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan to identify a pipeline of blue projects that fit within the Sustainable Financing Framework.
The first goal should be to launch a “Pilot Blue Sukuk issuance”, building on the successful 2025 Green Sukuk.
After that, Pakistan can build a track record of operations and look towards cross-border, foreign-currency Blue Sukuk offerings for international Islamic and ESG funds.
We must also strengthen project preparation, impact measurement and coordination across provinces.
The Imperative to Act
Pakistan sits at a turning point in history. The ocean that once carried our ancestors’ trade now shows a path to sustainable prosperity, climate protection and stronger regional links.
By combining the principles of AAOIFI Islamic finance with a firm commitment to the Blue Economy, we can finally replace our old blindness to the sea with a lasting maritime vision.
As established in the global market, the local assets are ready, and the rules are in place in Pakistan as well.
What is required now is executive leadership. The Ministry of Maritime Affairs and the Ministry of Finance must move from making policy to rapidly developing and executing capital-market projects.
Let Pakistan issue its Sovereign Blue Sukuk; not just as a test, but as the cornerstone of our maritime future.
References
- International Finance Corporation, Guidance for Blue Finance: Version 2.0 (IFC 2025) 7.
- International Finance Corporation, Guidance for Blue Finance: Version 2.0 (IFC 2025) 8.
- Press Information Department, Government of Pakistan, ‘Finance Minister Muhammad Aurangzeb Calls for Unlocking Pakistan’s $100 Billion Blue Economy Potential’ (4 November 2025).
- Ministry of Finance, Government of Pakistan, SPO 2025 (2025) 12.
- Meezan Bank, ‘Pakistan Launches First Sovereign Green Sukuk’ (2025).
- ‘FinMin calls Pakistan’s blue economy “game-changing sector” with huge potential’, The News International (4 November 2025).
- ‘Air Selangor prices world’s first blue Sukuk at RM200 million’, The Star (29 July 2026).
- ‘PM says blue economy is Pakistan’s next frontier’, The Express Tribune (2025).
- ‘First green Sukuk launched’, The Express Tribune (2025).
- Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Shari’ah Standard No 17: Investment Sukuk (AAOIFI).
Categories: Articles on Islamic Finance
