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Pakistan Navy forces out an armed Indian Submarine from Pakistani waters.

Uhm, no.

UNCLOS III

Exclusive economic zones (EEZs)
These extend from the edge of the territorial sea out to 200 nautical miles (370 kilometres; 230 miles) from the baseline. Within this area, the coastal nation has sole exploitation rights over all natural resources. In casual use, the term may include the territorial sea and even the continental shelf. The EEZs were introduced to halt the increasingly heated clashes over fishing rights, although oil was also becoming important. The success of an offshore oil platform in the Gulf of Mexico in 1947 was soon repeated elsewhere in the world, and by 1970 it was technically feasible to operate in waters 4,000 metres deep. Foreign nations have the freedom of navigation and overflight, subject to the regulation of the coastal states. Foreign states may also lay submarine pipes and cables.

@Rashid Mahmood and @Penguin @Oscar Does this mean that the "Coastal state" can restrict the navigation of foreign military vessels in it's EEZ ?

Please see items I have highlighted in Red.
 
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You really think Pakistan will give the right to innocent passage/transit passage to a spying Indian submarine near/within its territorial waters or vice versa? Would not the Indians have tried to board/attack a Pakistani vessel even if it had ended up near Indian waters by a navigational error it it favoured them?

I sure you are aware of the Augusta incident. American submarines had a habit of "harassing" Russian nuclear submarines even in International waters during the cold war.

When it comes to trespassing even an invasion force is allowed to go scot free provided you have good relations with your neighbour.
It doesn't matter what I think. What matters is what the (international) law says, since some folks here claim you can simply block or attack anyone coming into your territorial waters (= out to 12nmi from coast), and this is clearly not the case. UNCLOS III - which Pakistan signed and ratified - gives vessels the right of innocent/transit passage. UNCLOS III defines activities not considered innocent. If a country claims passage of a vessel is/was not innocent, upon this country is the burden of proof as to the actual activity not considered innocent. Also, this does not automatically give the right to come out guns blazing, as the treaty specifies avenues for conclict resolution for the signatories.

This is what countries have agreed upon. It is not up to me to evaluate, compare and contrast specific cases or incidents. I suggest you peruse the actual treaty articles, specifically articles 17-26, 30-32.
http://www.un.org/Depts/los/convention_agreements/texts/unclos/closindx.htm

Russian nuclear submarines are known to have lurked at US domestic naval bases during the cold war, and also fairly recently near a French nuclear sub bas. To the extent that was/is viewed as problematic, diplomatic steps (including legal prodecures) can and have been taken.

@Rashid Mahmood and @Penguin @Oscar Does this mean that the "Coastal state" can restrict the navigation of foreign military vessels in it's EEZ ?

Please see items I have highlighted in Red.

Short answer: NO it doesn't mean that.

See PART VII HIGH SEAS
SECTION 1. GENERAL PROVISIONS
Article86-115, specifically 87 and 95 (warship immunity)/96 (noncommercial government ships)

What you indicated in red refers to the EEZ i.e. the rights and duties of the coastal states for management of economic resources (e.g. fish, seabed mining, oil drilling). Within this area, the coastal nation has sole exploitation rights over all natural resources. The rights and jurisdiction of the coastal State and the rights and freedoms of other States are governed by the relevant provisions of this Convention.


Article56
Rights, jurisdiction and duties of the coastal State in the exclusive economic zone

1. In the exclusive economic zone, the coastal State has:
(a) sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources, whether living or non-living, of the waters superjacent to the seabed and of the seabed and its subsoil, and with regard to other activities for the economic exploitation and exploration of the zone, such as the production of energy from the water, currents and winds;
(b) jurisdiction as provided for in the relevant provisions of this Convention with regard to:
(i) the establishment and use of artificial islands, installations and structures;
(ii) marine scientific research;
(iii) the protection and preservation of the marine environment;
(c) other rights and duties provided for in this Convention.

2. In exercising its rights and performing its duties under this Convention in the exclusive economic zone, the coastal State shall have due regard to the rights and duties of other States and shall act in a manner compatible with the provisions of this Convention.

3. The rights set out in this article with respect to the seabed and subsoil shall be exercised in accordance with Part VI.


Article58
Rights and duties of other States in the exclusive economic zone

1. In the exclusive economic zone, all States, whether coastal or land-locked, enjoy, subject to the relevant provisions of this Convention, the freedoms referred to in article 87 of navigation and overflight and of the laying of submarine cables and pipelines, and other internationally lawful uses of the sea related to these freedoms, such as those associated with the operation of ships, aircraft and submarine cables and pipelines, and compatible with the other provisions of this Convention.

2. Articles 88 to 115 and other pertinent rules of international law apply to the exclusive economic zone in so far as they are not incompatible with this Part.

3. In exercising their rights and performing their duties under this Convention in the exclusive economic zone, States shall have due regard to the rights and duties of the coastal State and shall comply with the laws and regulations adopted by the coastal State in accordance with the provisions of this Convention and other rules of international law in so far as they are not incompatible with this Part.

Article60 Artificial islands, installations and structures in the exclusive economic zone
1. In the exclusive economic zone, the coastal State shall have the exclusive right to construct and to authorize and regulate the construction, operation and use of:
(a) artificial islands;
(b) installations and structures for the purposes provided for in article 56 and other economic purposes;
(c) installations and structures which may interfere with the exercise of the rights of the coastal State in the zone.

2. The coastal State shall have exclusive jurisdiction over such artificial islands, installations and structures, including jurisdiction with regard to customs, fiscal, health, safety and immigration laws and regulations.

3. Due notice must be given of the construction of such artificial islands, installations or structures, and permanent means for giving warning of their presence must be maintained. Any installations or structures which are abandoned or disused shall be removed to ensure safety of navigation, taking into account any generally accepted international standards established in this regard by the competent international organization. Such removal shall also have due regard to fishing, the protection of the marine environment and the rights and duties of other States. Appropriate publicity shall be given to the depth, position and dimensions of any installations or structures not entirely removed.

4. The coastal State may, where necessary, establish reasonable safety zones around such artificial islands, installations and structures in which it may take appropriate measures to ensure the safety both of navigation and of the artificial islands, installations and structures.

5. The breadth of the safety zones shall be determined by the coastal State, taking into account applicable international standards. Such zones shall be designed to ensure that they are reasonably related to the nature and function of the artificial islands, installations or structures, and shall not exceed a distance of 500 metres around them, measured from each point of their outer edge, except as authorized by generally accepted international standards or as recommended by the competent international organization. Due notice shall be given of the extent of safety zones.

6. All ships must respect these safety zones and shall comply with generally accepted international standards regarding navigation in the vicinity of artificial islands, installations, structures and safety zones.

7. Artificial islands, installations and structures and the safety zones around them may not be established where interference may be caused to the use of recognized sea lanes essential to international navigation.

8. Artificial islands, installations and structures do not possess the status of islands. They have no territorial sea of their own, and their presence does not affect the delimitation of the territorial sea, the exclusive economic zone or the continental shelf.


Article73
Enforcement of laws and regulations of the coastal State

1. The coastal State may, in the exercise of its sovereign rights to explore, exploit, conserve and manage the living resources in the exclusive economic zone, take such measures, including boarding, inspection, arrest and judicial proceedings, as may be necessary to ensure compliance with the laws and regulations adopted by it in conformity with this Convention.

2. Arrested vessels and their crews shall be promptly released upon the posting of reasonable bond or other security.

3. Coastal State penalties for violations of fisheries laws and regulations in the exclusive economic zone may not include imprisonment, in the absence of agreements to the contrary by the States concerned, or any other form of corporal punishment.

4. In cases of arrest or detention of foreign vessels the coastal State shall promptly notify the flag State, through appropriate channels, of the action taken and of any penalties subsequently imposed.


In short, the coastal state may establish laws e.g. for sea traffic and use of EEZ economic resources, that are binding to all, but cannot effectively block (war)ship navigation or (war)plane overflight.

I think you are missing the point that the Sub was 'made to surface' and did not surface intentionally or by mistake. I think this quashes the notion that this was a tag team job.
HOW was is MADE to surface? By what method?

Without going into operational details, please note that PN was waiting for it, and once detected near the coast line, 80NM away, noise makers were deployed to inform it, that it had been detected, and any further stay would be unwelcome. As international protocol's dictate, it surfaced, not to recharge it's batteries, but to signal confirmation that it was on it's way back.
Please also note:
  • 80nm out from the coast is in international waters. Not in territorial waters or even in contiguous (hot pursuit) zone.
  • Submarines are not legally required to surface or sail on the surface in the EEZ, like they are during innocent passage through territorial waters (12nmi max).
  • Certtain noisemakers inform a submerged submarine it has been detected, they do not make/force a submarine (to) leave (other noisemakers attach to the boat magnetically, allowing it to be tracked)
  • It is a captain's decision what course of action to take next (attempt to hide/reveal oneself, stay/go).
  • Surfacing in such a case signals non-hostile intent: "ok, I heard you, since not looking for trouble I now show myself"
  • Snorting (i.e. staying submerged at periscope depth) is not the same as surfacing. Both allow the submarine to run on its diesels and recharge batteries, and run at higher speeds
 
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