China firm eyes Port Qasim Sea-to-Steel project

February 13, 2026 (MLN): A Chinese industrial group is to submit an unsolicited feasibility study for a proposed Integrated Maritime Industrial Complex (IMIC) at Port Qasim.

The move marks a potential step toward developing ship recycling, port upgrades and an integrated steel mill at the country’s second-largest seaport.

The development emerged during a high-level review meeting chaired by Federal Minister for Maritime Affairs Junaid Anwar Chaudhry to advance the Sea-to-Steel Initiative, according to the press release.

Representatives of China’s Shandong Xinxu Group attended the meeting along with senior officials of the Ministry of Maritime Affairs, while Port Qasim Authority Chairman Rear Admiral (R) Syed Moazzam Ilyas joined via video link from Karachi.

The IMIC comprises three core components, including the revival and upgrading of the Iron Ore and Coal Berth (IOCB) jetty.

The facility is planned to handle ship recycling and repair operations, with recyclable scrap to be used as feedstock for reviving a steel mill within the complex.

The proposed project, described as a “Sea-to-Steel Green Maritime Industrial Corridor,” seeks to integrate ship recycling with domestic steel production in a bid to reduce reliance on imported raw materials.

Pakistan imports a significant portion of its steel and raw materials, contributing to pressure on foreign exchange reserves.

Linking recycling with manufacturing could partially substitute imports with locally processed scrap.

The Chinese group is expected to submit a comprehensive study covering financial impact assessments, structural and hydrographic analyses, and quantitative risk evaluations.

The proposal will undergo regulatory and technical review before any decision is taken, according to the minister.

Junaid Chaudary said that if approved, the IMIC could rank among the larger recent investments in Pakistan’s maritime and industrial sectors.

Port Qasim handles a substantial share of the country’s bulk cargo, including coal and iron ore imports for power plants and industry, making it central to heavy industrial supply chains.

The Ministry of Maritime Affairs has been pursuing foreign investment in port infrastructure and industrial zones to support exports, generate employment and ease external account pressures.

Integrated recycling, manufacturing and logistics projects at port locations are viewed as part of broader efforts to strengthen the blue economy and expand domestic value addition.

Any approval of the IMIC project will depend on its alignment with national priorities, including job creation, value addition and compliance with sustainability standards.

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