ISLAMABAD:
A Chinese firm is likely to invest $800 million in Pakistan to implement the Integrated Maritime Industrial Complex (IMIC) project, which includes a sea-to-steel initiative at Port Qasim, shipbreaking and maintenance.
The project will attract investment from the Chinese company towards ship recycling and ship maintenance along with revival of Pakistan Steel Mills (PSM) and an iron ore and coal jetty.
Sources told The Express Tribune that a mini-furnace factory would be set up in PSM to utilise iron following shipbreaking and recycling. They said that the Iron Ore and Coal Berth had been abandoned for the last 12 years and under the project, the jetty would be revived.
“This is a complete chain from recycling of ships to utilising steel in PSM,” a source said, adding that it had been named Sea-to-Steel Project.
PSM has been unable to run since 2015. The mill was shut down after Sui Southern Gas Company suspended gas supply. The current government is discussing proposals with Russia to revive the mill.
The minister for maritime affairs had floated a proposal to revive PSM by using iron from ship recycling in Karachi. Pakistan discussed the plan with the Chinese firm, which agreed to invest $800 million over five years.
According to a statement, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry chaired a high-level review meeting on Friday to accelerate the sea-to-steel initiative for Port Qasim.
The meeting centered on the Integrated Maritime Industrial Complex (IMIC), a flagship initiative to modernise industrial operations through port infrastructure upgrades, shipbuilding and recycling facilities, and an integrated steel mill.
Representatives from China’s Shandong Xinxu Group and senior Ministry of Maritime Affairs’ officials attended the meeting. Port Qasim Authority Chairman Rear Admiral (Retd) Syed Moazzam Ilyas participated via video link from Karachi.
The IMIC features three core components, including the revival and upgrading of the Iron Ore and Coal Berth. This facility will handle ship recycling and repair, with the resulting scrap used to revive PSM.
Branded the Sea-to-Steel Green Maritime Industrial Corridor, the project connects ship recycling with domestic steel production to lessen reliance on imported raw materials and leverage recyclable scrap.
The Chinese group, which has shown interest, will submit a comprehensive feasibility study, including financial impact assessments, structural and hydrographic analyses, and quantitative risk evaluations.
The IMIC is being considered as a key driver of blue economy by creating industrial value through maritime assets.
“Once submitted, the proposal will undergo a thorough review before reaching any decision,” Minister Junaid Anwar stated. “If approved, the IMIC would be among Pakistan’s largest recent maritime and industrial investments, cementing Port Qasim as a regional hub for heavy industry and logistics.”
Pakistan continues to attract foreign investment in ports and industry to boost exports, create jobs and ease pressure on foreign exchange. The minister noted that such integrated recycling, manufacturing and logistics projects could slash steel imports and spur domestic production.
He stressed that approval of the project hinged on alignment with national priorities, which were job creation, value addition and sustainable development standards.
